DraftKings Inc (NASDAQ:DKNG) could underscore both the upsides and downsides of prediction markets when it reports fourth-quarter results on Thursday after market close.
Here are the earnings estimates, analyst ratings and key items to watch.
DraftKings Q4 Earnings Estimates
Analysts expect DraftKings’ Q4 revenue to be $1.99 billion, up from $1.39 billion in Q4 2024, according to Benzinga Pro.
The sports betting operator missed analyst estimates for revenue in six of the last 10 quarters, including Q3.
Analysts expect Q4 earnings per share of 38 cents, up from 14 cents per share in last year's fourth quarter.
The company has beaten analyst estimates in nine of the last 10 quarters, including beating estimates in two straight quarters.
Analyst Ratings and Price Targets
Bank of America recently named Kalshi as a winner from Super Bowl LX, with DraftKings in better shape than other operators, due to a lower percentage of betting handle on the Seattle Seahawks compared to peers.
The fact that many of the top touchdown prop bets did not cash during the NFL championship could also help sportsbooks offset large betting volume on the Seahawks moneyline and spread, which they covered.
Here are recent analyst ratings on DraftKings stock and their price targets:
- Canaccord Genuity: Maintained Buy rating, lowered price target from $54 to $50
- Stifel: Maintained Buy rating, lowered price target from $46 to $44
- Guggenheim: Maintained Buy rating, lowered price target from $45 to $42
- Morgan Stanley: Maintained Overweight rating, raised price target from $50 to $53
Key Items to Watch in DraftKings Q4 Results
DraftKings and analysts will likely focus on prediction markets during the subsequent conference call. The company is one of several sports betting firms launching prediction markets, further cluttering the sector.
Unregulated players are offering betting options on sports outcomes and player props.
Prediction markets could take market share from DraftKings and others, but also present a potential entry market to get people interested in wagering, increasing the total addressable market size.
The quarterly results from DraftKings come shortly after Super Bowl LX. While the Super Bowl results will not factor into this quarter, the company could give color on betting handle, favorable or unfavorable results for the sportsbook and how many new customers it gained.
DraftKings could highlight its DraftKings Prediction platform and a recent partnership with Crypto.com to offer more predictions for consumers. Investors and analysts will want to hear more details on the early figures for the company's predictions market and how it compares to more established players like Kalshi and Polymarket.
DraftKings CEO Jason Robins said, after Q3, that this was "the most bullish" he had ever felt about the company. Investors and analysts will likely look for positive catalysts to help boost shareholder value, which has been slammed in 2026.
The company lowered its full-year guidance after the third quarter.
Investors will likely monitor the company's guidance for the next fiscal year. New state launches, prediction markets and any potential M&A could factor into more upside.
DraftKings Stock Price Action
The stock price is down 3.4% to $26.21 on Wednesday versus a 52-week trading range of $25.01 to $53.61. DraftKings stock is down 26.5% year-to-date in 2026 and down 39.6% over the last 52 weeks.
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