Mattel Stock Drops on Q3 Results: Hot Wheels Growth Can’t Muscle Past Barbie Declines

Toy company Mattel Inc (NASDAQ:MAT) reported third-quarter financial results Thursday after market close.

Here are the key highlights.

• Mattel shares are experiencing downward pressure. Why are MAT shares declining?

Mattel Q3 Financials

Mattel reported third-quarter revenue of $1.806 billion, up 4% year-over-year. The revenue missed a Street consensus estimate of $1.835 billion, according to data from Benzinga Pro.

North America revenue was up 4% year-over-year, while International revenue was up 5% year-over-year.

The company reported earnings of $1.30 per share, which beat a Street estimate of 94 cents per share.

Gross billings by category were:

• Dolls: $703 million, +4% year-over-year (KPop Demon Hunters strong, Barbie weak)
• Vehicles: $680 million, +9% year-over-year (Hot Wheels strong, billings up 7%)
• Infant, Toddler and Preschool: $221 million, -16% year-over-year (Fisher-Price weak)
• Action Figures, Building Sets, Games and Other: $451 million, +12% year-over-year (Games strong, Action Figures strong)

What’s Next for Mattel

New Mattel CEO Roger Lynch stepped into the top position in October 2026 and is telling investors where the company will improve.

"We will focus our resources on our greatest opportunities and translate the strength of Mattel’s portfolio and capabilities into more consistent financial performance," Lynch said.

The new CEO said the priorities are:

• Strengthen our brands and win in toys
• Drive innovation and creativity
• Invest with discipline to drive profitable growth

Updated from the company calls for fiscal 2026 earnings per share of $1.05 to $1.20, down from a prior range of $1.27 to $1.39.

The company expects full-year revenue of $5.401 billion to $5.562 billion, down from a prior range of $5.508 billion to $5.669 billion.

Analysts are expecting full-year revenue of $5.667 billion and earnings of $1.29 per share.

Mattel Stock Price Action

Mattel stock is down 3.14% to $14.50 in after-hours trading Thursday versus a 52-week trading range of $12.40 to $22.48.

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