Boyd Gaming Reports Substantial Earnings Miss Despite Strong Performance in Midwest and Southern Markets

Boyd Gaming misses Q1 2026 EPS targets as Las Vegas renovations cause a drag, while Midwest revenue rises 4% and a new $500M buyback is approved.

By: AXL Media

Published: Apr 24, 2026, 11:05 AM EDT

Source: Information for this report was sourced from Gambling Insider

Fiscal Underperformance Amid Property Development Costs

Boyd Gaming experienced a challenging first quarter in 2026, recording an earnings per share miss that management attributed to rising corporate expenses and increased interest payments on major development projects. The company’s net revenue of $997.4 million arrived fractionally below the $998.8 million projected by analysts. Furthermore, adjusted EBITDAR fell to $317.4 million, a significant decrease from the $337.5 million reported in the same period last year. This margin compression indicates that property level returns are normalizing toward 39%, moving away from the 40% plus peaks seen in early 2025.

Regional Strength in the Midwest and South

The Midwest and South segment emerged as the primary growth driver for the quarter, with revenue increasing 4% year over year to $525.1 million. Management cited broad based strength among both core and retail customers as the catalyst for this performance, which also saw EBITDA for the region jump by 5%. To sustain this momentum, Boyd is moving forward with a capital investment program that includes the modernization of the Par-A-Dice property in Illinois, which received key regulatory approvals this quarter.

Las Vegas Construction Impacts Local Segment Performance

In contrast to regional growth, the Las Vegas Locals segment faced operational headwinds, with revenue dipping to $217.1 million from $222.8 million in the prior year. Significant renovations at the Orleans and Suncoast properties were the primary cause of this decline, as construction disruptions hampered guest access and play. However, CFO Josh Hirsberg noted that when excluding these specific sites, the remaining local operations maintained margins exceeding 50%. The recent opening of Cadence Crossing Casino in Henderson is intended to capture emerging demand in the southeast Las Vegas valley.