Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT), the owner of FanDuel and Paddy Power, saw its shares drop 12% to 7,972p in London after the gambling giant issued 2026 earnings guidance after hours on Thursday that fell well short of market expectations, overshadowing a broadly in-line set of full-year results.
The company, which shifted its primary listing to New York, posted adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $2.845 billion for 2025.
That was close to the midpoint of its own November guidance, but full-year revenue of $16.4 billion came in below the $16.7 billion the company had pointed to.
The sharper blow came from Flutter's outlook for 2026, with adjusted EBITDA guidance of $2.97 billion landing far below the $3.5 billion analysts had pencilled in.
Peel Hunt, which holds a hold recommendation and an 18,000p target price on the stock, said weaker customer engagement in the fourth quarter of 2025 had carried into the new year, particularly in the United States.
"Given that yesterday's guidance fell short of consensus, we expect the share price to be weak today," the broker said.
Flutter also confirmed the launch of FanDuel Predicts, its prediction-markets product, which is being rolled out across selected US states.
Peel said regulatory uncertainty around the product's future was an additional overhang on the shares, even as it expressed confidence in Flutter's ability to navigate either outcome.