IMAX Corp (NYSE:IMAX) is positioned for a stronger second half of 2026 despite expectations for modest second quarter growth, according to Wedbush, which reiterated its ‘Outperform’ rating and $46 price target ahead of the company's earnings report.
Shares of IMAX traded hands at $38 on Friday morning, up about 5% so far this year.
The firm kept IMAX on its Best Ideas List, citing an improving pipeline of filmed-for-IMAX releases, expanding international opportunities, growing alternative content offerings and continued global footprint expansion as key drivers of long-term growth.
Wedbush expects IMAX to report second-quarter revenue of $94 million, slightly below the Wall Street consensus of $97 million, while forecasting adjusted EBITDA of $39 million, in line with consensus.
The analysts expect the quarter to reflect the strength of IMAX's diversified geographic footprint and content slate despite weaker-than-expected performance in China and a modest loss of domestic market share during a quarter dominated by family-oriented films.
Global box office on IMAX screens reached an estimated $284 million during the quarter, up 1% year over year but below Wedbush's initial forecast of $309 million. Domestic box office declined 6% to $134 million, while China fell 26% to $31 million. International markets excluding China rose 23% to $119 million.
Wedbush characterized the softer quarter as temporary, writing, "We view Q2 as a one-off, after significant market share gains in Q1 coupled with our expectations for outperformance in Q3 2026 to Q1 2027 at least."
The analysts maintained confidence that IMAX remains on track to achieve its 2026 targets, including approximately $1.4 billion in global box office, system installations of 160 to 175 and an adjusted EBITDA margin exceeding 45%.
Looking beyond this year, Wedbush expects the 2026-2028 release slate to support further market share gains as more filmed-for-IMAX titles are released across Hollywood, local-language productions and alternative content. The firm also sees opportunities for continued theater network expansion and expects EBITDA margins to exceed 50% by 2028.
Wedbush added that as IMAX nears the completion of its IMAX China share repurchase program, the company could resume buybacks of its US-listed shares while continuing to invest in expanding its global business.
IMAX is scheduled to report its Q2 results after the market closes on July 23.