Track market-moving stories before they get noisy

Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Churchill Downs, Incorporated (NASDAQ:CHDN – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 14,035 shares of the company’s stock, valued at approximately $1,258,000.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. AQR Capital Management LLC boosted its holdings in shares of Churchill Downs by 29.8% during the 1st quarter. AQR Capital Management LLC now owns 3,415 shares of the company’s stock valued at $373,000 after acquiring an additional 784 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Churchill Downs by 33.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 483,252 shares of the company’s stock worth $53,675,000 after purchasing an additional 121,204 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Churchill Downs by 7.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 225,800 shares of the company’s stock valued at $25,080,000 after acquiring an additional 15,161 shares during the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Churchill Downs by 1,364.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the company’s stock worth $28,000 after acquiring an additional 232 shares in the last quarter. Finally, Sivia Capital Partners LLC purchased a new position in Churchill Downs in the second quarter worth about $229,000. Institutional investors own 82.59% of the company’s stock.

Churchill Downs Price Performance Churchill Downs stock opened at $89.90 on Monday. The company has a current ratio of 0.36, a quick ratio of 0.36 and a debt-to-equity ratio of 3.06. Churchill Downs, Incorporated has a 12-month low of $79.40 and a 12-month high of $118.35. The company has a fifty day simple moving average of $87.24 and a 200-day simple moving average of $88.64. The stock has a market cap of $6.27 billion, a P/E ratio of 15.42, a price-to-earnings-growth ratio of 0.85 and a beta of 0.68.

Churchill Downs (NASDAQ:CHDN – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $3.45 earnings per share for the quarter, hitting the consensus estimate of $3.45. The business had revenue of $980.00 million during the quarter, compared to the consensus estimate of $977.38 million. Churchill Downs had a net margin of 13.82% and a return on equity of 42.16%. The company’s revenue was up 4.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.10 EPS. Equities analysts expect that Churchill Downs, Incorporated will post 7.14 EPS for the current fiscal year. Analysts Set New Price Targets Several analysts have issued reports on CHDN shares. Wells Fargo & Company decreased their price objective on shares of Churchill Downs from $120.00 to $117.00 and set an “overweight” rating for the company in a research note on Friday, July 31st. Susquehanna boosted their price objective on shares of Churchill Downs from $121.00 to $124.00 and gave the company a “positive” rating in a report on Friday, July 31st. Mizuho boosted their target price on shares of Churchill Downs from $155.00 to $157.00 and gave the company an “outperform” rating in a research note on Monday, August 3rd. Citigroup reiterated an “outperform” rating on shares of Churchill Downs in a research report on Friday, July 31st. Finally, Citizens Jmp dropped their price objective on shares of Churchill Downs from $149.00 to $137.00 and set a “market outperform” rating for the company in a research note on Friday, July 31st. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $136.88.

View Our Latest Stock Report on CHDN

(Free Report)

Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.

Featured Stories Five stocks we like better than Churchill Downs Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?

Receive News & Ratings for Churchill Downs Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Churchill Downs and related companies with MarketBeat.com's FREE daily email newsletter.

Churchill Downs is evolving beyond horse racing, building a diversified gaming ecosystem anchored by valuable licenses, historical racing machines, and wagering technologies. Q2 2026 results set company records, with revenue up 5% to $980M and adjusted EBITDA up 6% to $477M, showcasing operational leverage. Earnings growth outpaced revenue, with adjusted diluted EPS rising 11% to $3.45, indicating improved margin conversion and management execution.

Posted by Defense World Staff on Aug 5th, 2026

Churchill Downs (NASDAQ:CHDN) and the New York Racing Association announced plans to launch the Thoroughbred Championship Series, a six-race competition for three-year-old horses scheduled to begin in 2027.

The series, also called TCS, will connect races at three major venues over five months, beginning with the Kentucky Derby in May and continuing through the early fall. It will include the Kentucky Derby, Belmont Stakes and Travers Stakes, and will conclude with a championship finale at Churchill Downs Racetrack in September.

Bill Carstanjen, chief executive officer of Churchill Downs Incorporated, said the initiative is intended to create a season-long structure that gives fans a reason to follow leading horses beyond the Kentucky Derby.

“Today’s fans experience sports differently than they did even a decade ago,” Carstanjen said. “They want stories that unfold over time. They want rivalries, standings, and meaningful competition that builds from one event to the next. They want a championship they can follow throughout an entire season.”

Under the format described during the news conference, horses will compete for standings across the six races. The eventual winner of the “Race for the Vase” will not necessarily need to win every race, or any specific individual race, but will be determined by consistent performance against top competition throughout the series.

National Broadcast Plans David O’Rourke, president and chief executive officer of the New York Racing Association, said the series is designed to bring a playoff-style format to Thoroughbred racing and make the sport easier for broader audiences to follow.

“Our goal is straightforward: To build a true season-long competition that carries the energy of the spring classics through the summer and into the fall,” O’Rourke said.

The companies said the series will be presented to a national audience through FOX and NBC. Carstanjen said Churchill Downs appreciates NBC’s support, while also noting that both NBC and FOX have provided substantial support for racing.

O’Rourke said national coverage would help the industry tell stories around horses, jockeys and rivalries that develop through the season. He said the Triple Crown races demonstrate the public appeal of major racing events, and the new series aims to extend that attention from May into the fall.

Partnership Links Historic Venues The partnership joins two of the largest racing organizations in the sport and connects Churchill Downs with NYRA’s New York venues, including Belmont Park and Saratoga Race Course.

O’Rourke said NYRA is approaching “a new era” at Belmont Park, which he said is scheduled to open Sept. 18 after a three-year project intended to create a sports and entertainment destination. He contrasted the modernized Belmont venue with the historic Saratoga Race Course and said the series will link those tracks with Churchill Downs’ Twin Spires.

During the question-and-answer portion of the event, the companies characterized the arrangement as an effort to build on the organizations’ respective strengths rather than as a response to concerns over Kentucky’s position within the racing industry. The partnership, they said, is intended to modernize how the public consumes the sport by creating a connected narrative across major events and broadcast platforms.

About Churchill Downs (NASDAQ:CHDN) Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.

« PREVIOUS HEADLINEGrocery Stocks To Research – August 3rd

NEXT HEADLINE »Promising Waste Management Stocks To Consider – August 3rd

Churchill Downs: The Derby Is Just the BeginningChurchill Downs NASDAQ: CHDN and the New York Racing Association announced plans to launch the Thoroughbred Championship Series, a six-race competition for three-year-old horses scheduled to begin in 2027.

The series, also called TCS, will connect races at three major venues over five months, beginning with the Kentucky Derby in May and continuing through the early fall. It will include the Kentucky Derby, Belmont Stakes and Travers Stakes, and will conclude with a championship finale at Churchill Downs Racetrack in September.

Get Churchill Downs alerts:

Why Flutter Entertainment May Be a Resilient Sports Betting StockBill Carstanjen, chief executive officer of Churchill Downs Incorporated, said the initiative is intended to create a season-long structure that gives fans a reason to follow leading horses beyond the Kentucky Derby.

“Today’s fans experience sports differently than they did even a decade ago,” Carstanjen said. “They want stories that unfold over time. They want rivalries, standings, and meaningful competition that builds from one event to the next. They want a championship they can follow throughout an entire season.”

Churchill Downs Stock: Could Tariff Fears Dampen Derby Gains?Under the format described during the news conference, horses will compete for standings across the six races. The eventual winner of the “Race for the Vase” will not necessarily need to win every race, or any specific individual race, but will be determined by consistent performance against top competition throughout the series.

National Broadcast Plans David O’Rourke, president and chief executive officer of the New York Racing Association, said the series is designed to bring a playoff-style format to Thoroughbred racing and make the sport easier for broader audiences to follow.

“Our goal is straightforward: To build a true season-long competition that carries the energy of the spring classics through the summer and into the fall,” O’Rourke said.

The companies said the series will be presented to a national audience through FOX and NBC. Carstanjen said Churchill Downs appreciates NBC’s support, while also noting that both NBC and FOX have provided substantial support for racing.

O’Rourke said national coverage would help the industry tell stories around horses, jockeys and rivalries that develop through the season. He said the Triple Crown races demonstrate the public appeal of major racing events, and the new series aims to extend that attention from May into the fall.

Partnership Links Historic Venues The partnership joins two of the largest racing organizations in the sport and connects Churchill Downs with NYRA’s New York venues, including Belmont Park and Saratoga Race Course.

O’Rourke said NYRA is approaching “a new era” at Belmont Park, which he said is scheduled to open Sept. 18 after a three-year project intended to create a sports and entertainment destination. He contrasted the modernized Belmont venue with the historic Saratoga Race Course and said the series will link those tracks with Churchill Downs’ Twin Spires.

During the question-and-answer portion of the event, the companies characterized the arrangement as an effort to build on the organizations’ respective strengths rather than as a response to concerns over Kentucky’s position within the racing industry. The partnership, they said, is intended to modernize how the public consumes the sport by creating a connected narrative across major events and broadcast platforms.

About Churchill Downs (NASDAQ:CHDN)Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Churchill Downs Right Now?Before you consider Churchill Downs, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Churchill Downs wasn't on the list.

While Churchill Downs currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Click the link to see MarketBeat's list of seven stocks and why their long-term outlooks are very promising.

Get This Free Report

Posted by Defense World Staff on Aug 3rd, 2026

First Trust Advisors LP grew its stake in shares of Churchill Downs, Incorporated (NASDAQ:CHDN – Free Report) by 178.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 76,395 shares of the company’s stock after acquiring an additional 49,002 shares during the period. First Trust Advisors LP owned about 0.11% of Churchill Downs worth $6,863,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of the stock. PNC Financial Services Group Inc. raised its position in shares of Churchill Downs by 3.7% during the 1st quarter. PNC Financial Services Group Inc. now owns 52,458 shares of the company’s stock valued at $4,712,000 after acquiring an additional 1,848 shares in the last quarter. Aurora Investment Counsel lifted its stake in Churchill Downs by 1.2% during the first quarter. Aurora Investment Counsel now owns 25,924 shares of the company’s stock worth $2,329,000 after purchasing an additional 306 shares during the last quarter. California Public Employees Retirement System boosted its holdings in Churchill Downs by 12.7% in the first quarter. California Public Employees Retirement System now owns 134,335 shares of the company’s stock worth $12,067,000 after purchasing an additional 15,141 shares during the period. Copeland Capital Management LLC boosted its holdings in Churchill Downs by 9.9% in the first quarter. Copeland Capital Management LLC now owns 265,569 shares of the company’s stock worth $23,856,000 after purchasing an additional 23,996 shares during the period. Finally, Bessemer Group Inc. increased its stake in Churchill Downs by 38.2% during the first quarter. Bessemer Group Inc. now owns 46,141 shares of the company’s stock valued at $4,145,000 after purchasing an additional 12,744 shares during the last quarter. Institutional investors and hedge funds own 82.59% of the company’s stock.

Analyst Upgrades and Downgrades Several equities research analysts recently weighed in on the stock. Truist Financial set a $145.00 price objective on shares of Churchill Downs in a research note on Friday, June 12th. Wells Fargo & Company decreased their target price on Churchill Downs from $120.00 to $117.00 and set an “overweight” rating for the company in a research note on Friday. Citigroup reaffirmed an “outperform” rating on shares of Churchill Downs in a report on Friday. Susquehanna increased their price target on Churchill Downs from $121.00 to $124.00 and gave the stock a “positive” rating in a research report on Friday. Finally, Weiss Ratings downgraded Churchill Downs from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Nine research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Churchill Downs presently has an average rating of “Moderate Buy” and an average target price of $136.62.

Read Our Latest Stock Report on CHDN

Key Headlines Impacting Churchill Downs Here are the key news stories impacting Churchill Downs this week:

Positive Sentiment: Analysts remain bullish despite target adjustments. Susquehanna raised its price target from $121 to $124 and kept a positive rating. Wells Fargo and Citizens JMP lowered their targets to $117 and $137, respectively, but maintained “overweight” and “market outperform” ratings. All three targets imply substantial upside from recent trading levels. Benzinga analyst rating coverage Positive Sentiment: Quarterly revenue increased year over year. Churchill Downs reported second-quarter revenue of approximately $980 million, up 4.9% from the prior year and slightly ahead of the roughly $977 million consensus estimate. Adjusted earnings of $3.45 per share matched the company’s reported consensus estimate and increased from $3.10 a year earlier. Churchill Downs Q2 sales report Positive Sentiment: Churchill Downs is expanding its wagering and racing operations. The company agreed to buy back NYRA’s 49% stake in United Tote, restoring full ownership of the pari-mutuel technology and services business. It also outlined a $285 million Victory Run development ahead of the 2028 Kentucky Derby, which could support long-term growth and enhance the Churchill Downs property. United Tote stake acquisition Victory Run development and gaming asset sales Neutral Sentiment: Strategic asset sales could reshape the portfolio. Management is pursuing potential sales of nine regional casinos as part of a broader review of its gaming assets. Proceeds could improve capital flexibility, although the outcome and valuation of any transactions remain uncertain. Strategic gaming asset review Negative Sentiment: The earnings reaction was pressured by elevated expectations. One data provider cited EPS of $3.45 as below its $3.51 consensus estimate, while conference-call commentary may have raised concerns about margins or forward momentum after strong Derby-related performance. The planned Victory Run investment and Churchill Downs’ high leverage also keep capital-spending and balance-sheet risks in focus. Churchill Downs Q2 earnings estimate comparison Churchill Downs Stock Performance Shares of Churchill Downs stock opened at $84.30 on Monday. The business has a fifty day simple moving average of $86.81 and a 200-day simple moving average of $90.30. Churchill Downs, Incorporated has a fifty-two week low of $79.40 and a fifty-two week high of $118.35. The firm has a market cap of $5.88 billion, a price-to-earnings ratio of 14.46, a price-to-earnings-growth ratio of 0.55 and a beta of 0.68. The company has a quick ratio of 0.36, a current ratio of 0.36 and a debt-to-equity ratio of 3.06.

Churchill Downs (NASDAQ:CHDN – Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $3.45 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $3.45. The business had revenue of $980.00 million for the quarter, compared to analysts’ expectations of $977.38 million. Churchill Downs had a return on equity of 42.16% and a net margin of 13.82%.The company’s quarterly revenue was up 4.9% on a year-over-year basis. During the same period in the previous year, the firm posted $3.10 EPS. On average, equities analysts forecast that Churchill Downs, Incorporated will post 7.1 EPS for the current fiscal year.

Churchill Downs Profile (Free Report)

Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.

Read More Five stocks we like better than Churchill Downs 3 Fixed-Income ETFs Show Why Yield Is Only Part of the Income Story AbbVie Quietly Solved Its Biggest Problem—Now What? Rio Tinto’s Results Make the Case for Looking Beyond Tech in the AI Trade Strategy’s Structural Strength: Hidden in a $8 Billion Illusion Want to see what other hedge funds are holding CHDN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Churchill Downs, Incorporated (NASDAQ:CHDN – Free Report).

Receive News & Ratings for Churchill Downs Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Churchill Downs and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINESupernus Pharmaceuticals (SUPN) to Post Quarterly Earnings on Tuesday

Churchill Downs Incorporated (CHDN) Q2 2026 Earnings Call Transcript

Churchill Downs (CHDN - Free Report) came out with quarterly earnings of $3.45 per share, missing the Zacks Consensus Estimate of $3.51 per share. This compares to earnings of $3.1 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -1.71%. A quarter ago, it was expected that this racetrack operator and gambling company would post earnings of $1.06 per share when it actually produced earnings of $1.21, delivering a surprise of +14.15%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Churchill Downs, which belongs to the Zacks Gaming industry, posted revenues of $980 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.34%. This compares to year-ago revenues of $934.4 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Churchill Downs shares have lost about 21.6% since the beginning of the year versus the S&P 500's gain of 8.5%.

What's Next for Churchill Downs?While Churchill Downs has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Churchill Downs was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.31 on $698.94 million in revenues for the coming quarter and $7.14 on $3.02 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Century Casinos (CNTY - Free Report) , has yet to report results for the quarter ended June 2026.

This casino operator is expected to post quarterly loss of $0.40 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Century Casinos' revenues are expected to be $152.1 million, up 0.9% from the year-ago quarter.

LOUISVILLE, Ky., July 29, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company," "CDI," "we") today reported business results for the quarter ended June 30, 2026.

Company Highlights

Second quarter 2026 financial results, as compared to the prior year quarter: All-time record net revenue of $980 million, up $46 million or 5%Net income attributable to CDI of $241 million, up $24 million or 11%All-time record Adjusted EBITDA of $477 million, up $26 million or 6% Churchill Downs Racetrack ran the 152nd Kentucky Derby with all-time record Derby Week contribution to Adjusted EBITDA. All-time record all-sources wagering for Kentucky Derby WeekHighest peak viewership of 24.4 million, up 12% vs. prior year and highest average viewership of 19.6 million, up 11% vs. prior year152nd Kentucky Oaks in primetime for the first time with 2.4 million viewers and record all sources wagering for the Kentucky Oaks race day card We ended second quarter of 2026 with net bank leverage of 3.7x. CONSOLIDATED RESULTS
   Second Quarter(in millions, except per share data)2026
 2025
    Net revenue$980 $934Net income attributable to CDI$241 $217Diluted EPS attributable to CDI$3.42 $2.99Adjusted net income attributable to CDI(a)$242 $224Adjusted Diluted EPS(a)$3.45 $3.10Adjusted EBITDA(a)$477 $451 (a) This is a non-GAAP measure. See explanation of non-GAAP measures below. SEGMENT RESULTS

The summaries below present revenue from external customers and intercompany revenue from each of our reportable segments. All comparisons are against the applicable prior year period unless otherwise noted.

Live and Historical Racing

 Second Quarter(in millions)2026
 2025
    Revenue$575 $541Adjusted EBITDA 318  297       Second quarter 2026 revenue increased $34 million due to a $21 million increase from Churchill Downs Racetrack, a $12 million increase from our Kentucky HRM venues, and a $1 million increase from our Virginia HRM venues. The Churchill Downs Racetrack increase was primarily due to a record-breaking Derby Week, including increased NBC broadcast revenue, increased ticketing revenue, increased sponsorship and licensing revenue, and increased wagering revenue. The Kentucky HRM increase was due to a $5 million increase from our Southwestern Kentucky venues, a $3 million increase from our Northern Kentucky venues, a $3 million increase from our Western Kentucky venues, and a $1 million increase from our Louisville venues. The Virginia HRM increase was due to a $5 million net increase primarily from our Northern Virginia venues, partially offset by a $4 million net decrease from our Central Virginia venues primarily from increased competition.

Second quarter 2026 Adjusted EBITDA increased $21 million due to a $16 million increase from Churchill Downs Racetrack, a $6 million increase from our Kentucky HRM venues, and a $1 million increase from our Virginia HRM venues, partially offset by a $2 million decrease at our New Hampshire venues primarily due to the planned closure of our temporary Casino Salem venue during the construction of the Rockingham Grand Casino venue. The Churchill Downs Racetrack increase was primarily due to a record-breaking Derby Week, including increased NBC broadcast revenue, increased ticketing revenue, increased sponsorship and licensing revenue, and increased wagering revenue, partially offset by higher operating expenses. The Kentucky HRM increase was due to a $2 million increase from our Northern Kentucky venues, a $2 million increase from our Southwestern Kentucky venues, and a $2 million increase from our Western Kentucky venues. The Virginia HRM increase was primarily due to a $4 million net increase from our Northern Virginia venues, a $1 million increase from our Western Virginia venue, and a $1 million increase from our Southern Virginia venues, partially offset by a $5 million net decrease from our Central Virginia venues primarily from increased competition.

Wagering Services and Solutions

 Second Quarter(in millions)2026
 2025
    Revenue$178 $168Adjusted EBITDA 52  48       Second quarter 2026 revenue increased $10 million due to $9 million growth in our Horse Racing business from record-breaking Derby Week wagering and a $1 million increase from our Exacta business.

Second quarter 2026 Adjusted EBITDA increased $4 million due to a $3 million increase from our Horse Racing business and a $1 million increase from our Exacta business.

Gaming

 Second Quarter(in millions)2026
 2025
    Revenue$270 $266Adjusted EBITDA 133  127       Second quarter 2026 revenue increased $4 million primarily due to an $8 million increase primarily from our New York, Indiana, and Maryland properties, partially offset by a $4 million decrease primarily from the cessation of HRM operations in Louisiana in May 2025.

Second quarter 2026 Adjusted EBITDA increased $6 million. Our equity investments increased $4 million from strong performance at Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio. Our wholly-owned gaming properties increased $4 million primarily from strong performance at our New York venue, partially offset by a $2 million decrease primarily from the cessation of HRM operations in Louisiana in May 2025.

All Other

 Second Quarter(in millions) 2026   2025     Revenue$2  $2 Adjusted EBITDA (26)  (21)         Second quarter 2026 revenue is consistent with the prior year. All intercompany captive revenue is eliminated in consolidation.

Second quarter 2026 Adjusted EBITDA decreased $5 million primarily due to a reduction of corporate legal-related fees in the prior year quarter and claim development within our captive insurance company.

NET INCOME ATTRIBUTABLE TO CDI

The Company's second quarter 2026 net income attributable to CDI was $241 million compared to $217 million in the prior year quarter.

The following factors impacted the comparability of the Company's second quarter 2026 net income to the prior year quarter:

a $4 million after-tax decrease in transaction, pre-opening, and other expenses; anda $2 million after-tax impairment charge in the prior year quarter related to a write-off of obsolete HRMs in Virginia. Excluding the items above, second quarter 2026 adjusted net income attributable to CDI increased $18 million primarily due to the following:

a $10 million after-tax increase primarily driven by the results of our operations;a $4 million after-tax decrease in interest expense; anda $4 million after-tax increase in equity income from our unconsolidated affiliates.
Conference Call

A conference call regarding this news release is scheduled for Thursday, July 30, 2026 at 9 a.m. ET. Investors and other interested parties may listen to the teleconference by accessing the online, real-time webcast and broadcast of the call at http://ir.churchilldownsincorporated.com/events.cfm, or by registering in advance via teleconference here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are encouraged to dial-in 15 minutes prior to the start time. An online replay will be available by noon ET on Thursday, July 30, 2026. A copy of the Company’s news release announcing quarterly results and relevant financial and statistical information about the period will be accessible at www.churchilldownsincorporated.com.

Use of Non-GAAP Measures

In addition to the results provided in accordance with GAAP, the Company also uses non-GAAP measures, including adjusted net income, adjusted diluted EPS, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA.

The Company uses non-GAAP measures as key performance measures of the results of operations for purposes of evaluating performance internally. These measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of the Company by excluding certain items that may not be indicative of the Company's core business or operating results. The Company believes the use of these measures enables management and investors to evaluate and compare, from period to period, the Company’s operating performance in a meaningful and consistent manner. The non-GAAP measures are supplemental measures of our performance that is not required by, or presented in accordance with, GAAP, and should not be considered as an alternative to, or more meaningful than, net income or diluted EPS (as determined in accordance with GAAP) as a measure of our operating results.

We use Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.

Adjusted net income and adjusted diluted EPS exclude discontinued operations net income or loss; net income or loss attributable to noncontrolling interests; transaction expense, which includes acquisition and disposition related charges, as well as legal, accounting, and other deal-related expense; pre-opening expense; and certain other gains, charges, recoveries, and expenses.

Adjusted EBITDA includes our portion of EBITDA from our equity investments and the portion of EBITDA attributable to noncontrolling interests.

Adjusted EBITDA excludes:

Transaction expense, net, which includes: Acquisition, disposition, and property sale related charges; andOther transaction expense, including legal, accounting, and other deal-related expense; Stock-based compensation expense;Rivers Des Plaines' impact on our investments in unconsolidated affiliates from legal reserves and transaction costs;Asset impairments, net;Gain on property sales;Legal reserves;Pre-opening expense; andOther charges, recoveries, and expenses For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the Consolidated Statements of Comprehensive Income. See the Reconciliation of Net Income to Adjusted EBITDA included herewith for additional information.

About Churchill Downs Incorporated

Churchill Downs Incorporated ("CDI") (Nasdaq: CHDN) has created extraordinary entertainment experiences for over 150 years, beginning with the Company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the acquisition, development, and operation of live and historical racing entertainment venues, the growth of the online wagering businesses, and the acquisition, development, and operation of regional casino gaming properties. https://www.churchilldownsincorporated.com/

This news release contains various "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "seek," "should," "will," "scheduled," and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; changes in, or new interpretations of, applicable tax laws or rulings that could result in additional tax liabilities; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, and related economic matters on our results of operations, financial conditions, and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; negative shifts in public opinion regarding gambling that could result in increased regulation of, or new restrictions on, the gaming industry; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine ("HRM") manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; cybersecurity risk, including cybersecurity breaches, loss or misuse of our confidential information as a result of a breach including customers’ personal information, or IT system operational disruptions, could lead to government enforcement actions or other litigation; costs of compliance with increasingly complex laws and regulations regarding data privacy and protection of personal information; reliance on our technology services and catastrophic events, system failures, errors or defects disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates, disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; whether the objective of a strategic alternative review process will be achieved; the terms, structure, benefits and costs of any strategic transaction; the timing of any strategic transaction and whether any strategic transaction will be consummated on the terms proposed or at all; the risk that the announcement or exploration of strategic alternatives could have an adverse effect on our ability to retain key personnel and maintain relationships with partners, suppliers, employees, shareholders and other business relationships; the risk of any unexpected costs or expenses resulting from the exploration of strategic alternatives; the risk of any litigation relating to the exploration of strategic alternatives or any strategic transaction; and other factors described under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.

We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)     Three Months Ended June 30, Six Months Ended June 30,(in millions, except per common share data) 2026   2025   2026   2025 Net revenue:       Live and Historical Racing$543  $510  $840  $783 Wagering Services and Solutions 167   158   276   265 Gaming 270   266   527   529 All Other —   —   —   — Total net revenue 980   934   1,643   1,577 Operating expense:       Live and Historical Racing 268   256   467   446 Wagering Services and Solutions 96   91   164   158 Gaming 192   191   380   383 All Other 5   4   10   8 Selling, general and administrative expense 61   61   120   116 Asset impairments, net —   2   —   2 Transaction expense, net 1   2   2   2 Total operating expense 623   607   1,143   1,115 Operating income 357   327   500   462 Other (expense) income:       Interest expense, net (70)  (75)  (142)  (147)Equity in income of unconsolidated affiliates 41   37   77   70 Miscellaneous, net —   3   6   3 Total other (expense) income (29)  (35)  (59)  (74)Income from operations before provision for income taxes 328   292   441   388 Income tax provision (86)  (74)  (116)  (93)Net income 242   218   325   295 Net income attributable to noncontrolling interests 1   1   1   1 Net income attributable to
Churchill Downs Incorporated$241  $217  $324  $294         Net income attributable to Churchill Downs Incorporated per common share data:       Basic net income$3.43  $3.02  $4.59  $4.02 Diluted net income$3.42  $2.99  $4.58  $3.98 Weighted average shares outstanding:       Basic 70   72   70   73 Diluted 70   72   70   73  CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)    (in millions)June 30,
2026 December 31,
2025ASSETS   Current assets:   Cash and cash equivalents$196  $201 Restricted cash 99   88 Accounts receivable, net 129   93 Income taxes receivable —   17 Other current assets 60   44 Total current assets 484   443 Property and equipment, net 2,911   2,919 Investment in and advances to unconsolidated affiliates 690   685 Goodwill 900   900 Other intangible assets, net 2,513   2,515 Other assets 23   23 Total assets$7,521  $7,485 LIABILITIES AND SHAREHOLDERS' EQUITY   Current liabilities:   Accounts payable$261  $184 Accrued expenses and other current liabilities 370   400 Income taxes payable 38   — Current deferred revenue 27   55 Current maturities of long-term debt and notes payable 663   63 Dividends payable —   31 Total current liabilities 1,359   733 Long-term debt, net of current maturities and loan origination fees 1,627   1,986 Notes payable, net of current maturities and debt issuance costs 2,483   3,081 Non-current deferred revenue 12   15 Deferred income taxes 562   520 Other liabilities 87   94 Total liabilities 6,130   6,429 Commitments and contingencies   Redeemable noncontrolling interest 50   46 Shareholders' equity:   Preferred stock —   — Common stock 7   — Retained earnings 1,335   1,011 Accumulated other comprehensive loss (1)  (1)Total Churchill Downs Incorporated shareholders' equity 1,341   1,010 Total liabilities and shareholders' equity$7,521  $7,485  CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
   Six Months Ended June 30,(in millions) 2026   2025 Cash flows from operating activities:   Net income$325  $295 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization 115   117 Distributions from unconsolidated affiliates 72   63 Equity in income of unconsolidated affiliates (77)  (70)Stock-based compensation 13   11 Deferred income taxes 42   4 Asset impairments —   2 Amortization of operating lease assets 3   3 Other 5   4 Changes in operating assets and liabilities:   Income taxes 55   81 Deferred revenue (31)  (37)Other assets and liabilities (10)  14 Net cash provided by operating activities 512   487 Cash flows from investing activities:   Capital maintenance expenditures (38)  (32)Capital project expenditures (79)  (133)Other (2)  (1)Net cash used in investing activities (119)  (166)Cash flows from financing activities:   Proceeds from borrowings under long-term debt obligations 646   642 Repayments of borrowings under long-term debt obligations (1,006)  (547)Payment of dividends (31)  (30)Repurchase of common stock —   (341)Taxes paid related to net share settlement of stock awards (3)  (4)Change in bank overdraft 8   (5)Other (1)  (2)Net cash used in financing activities (387)  (287)Net increase in cash, cash equivalents and restricted cash 6   34 Cash, cash equivalents and restricted cash, beginning of period 289   252 Cash, cash equivalents and restricted cash, end of period$295  $286  CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited)     Three Months Ended June 30, Six Months Ended June 30,(in millions, except per common share data) 2026   2025   2026   2025 GAAP net income attributable to CDI$241  $217  $324  $294         Adjustments, continuing operations:       Transaction, pre-opening, and other expense 3   9   9   13 Other charges and recoveries, net (1)  (1)  (5)  (1)Asset impairments, net —   2   —   2 Income tax impact on net income adjustments(a) (1)  (3)  (1)  (4)Total adjustments 1   7   3   10 Adjusted net income attributable to CDI$242  $224  $327  $304         Adjusted diluted EPS$3.45  $3.10  $4.66  $4.15         Weighted average shares outstanding - Diluted 70   72   70   73                 (a) The income tax impact for each adjustment is derived by applying the effective tax rate, including current and deferred income tax expense, based upon the jurisdiction and the nature of the adjustment.  Three Months Ended June 30, Six Months Ended June 30,(in millions)2026
 2025
 2026
 2025
Total Wagering       TwinSpires Horse Racing(a)$634 $609 $1,009 $993            (a) TwinSpires Horse Racing wagering does not include wagering generated by Velocity and national affiliates. CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited)     Three Months Ended June 30, Six Months Ended June 30,(in millions) 2026   2025   2026   2025 Net revenue from external customers:       Live and Historical Racing:       Churchill Downs Racetrack$247  $228  $250  $232 Louisville 59   57   114   109 Northern Kentucky 29   27   65   58 Southwestern Kentucky 49   43   93   84 Western Kentucky 18   16   37   28 Virginia 138   136   271   266 New Hampshire 3   3   10   6 Total Live and Historical Racing$543  $510  $840  $783         Wagering Services and Solutions:$167  $158  $276  $265         Gaming:       Florida$24  $26  $48  $51 Iowa 24   23   48   47 Indiana 35   32   68   64 Louisiana 29   32   65   77 Maine 26   28   51   52 Maryland 28   25   49   46 Mississippi 24   24   48   49 New York 51   48   97   91 Pennsylvania 29   28   53   52 Total Gaming$270  $266  $527  $529 All Other —   —   —   — Net revenue from external customers$980  $934  $1,643  $1,577         Intercompany net revenues:       Live and Historical Racing$32  $31  $36  $35 Wagering Services and Solutions 11   10   20   19 Gaming —   —   5   4 All Other 2   2   4   4 Eliminations (45)  (43)  (65)  (62)Intercompany net revenue$—  $—  $—  $—  CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited)
   Three Months Ended June 30, 2026(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other TotalNet revenue from external customers           Pari-mutuel:           Live and simulcast racing$53 $133 $4 $190 $— $190Historical racing(a) 265  —  —  265  —  265Racing event-related services 192  —  —  192  —  192Gaming(a) 3  4  232  239  —  239Other(a) 30  30  34  94  —  94Total$543 $167 $270 $980 $— $980  Three Months Ended June 30, 2025(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other TotalNet revenue from external customers           Pari-mutuel:           Live and simulcast racing$54 $125 $4 $183 $— $183Historical racing(a) 252  —  5  257  —  257Racing event-related services 173  —  —  173  —  173Gaming(a) 3  4  225  232  —  232Other(a) 28  29  32  89  —  89Total$510 $158 $266 $934 $— $934                  (a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $16 million in each of the three months ended June 30, 2026 and 2025.  Six Months Ended June 30, 2026(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other TotalNet revenue from external customers           Pari-mutuel:           Live and simulcast racing$64 $214 $14 $292 $— $292Historical racing(a) 522  —  —  522  —  522Racing event-related services 193  —  1  194  —  194Gaming(a) 7  10  450  467  —  467Other(a) 54  52  62  168  —  168Total$840 $276 $527 $1,643 $— $1,643  Six Months Ended June 30, 2025(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other TotalNet revenue from external customers           Pari-mutuel:           Live and simulcast racing$65 $205 $15 $285 $— $285Historical racing(a) 489  —  14  503  —  503Racing event-related services 174  —  1  175  —  175Gaming(a) 6  8  439  453  —  453Other(a) 49  52  60  161  —  161Total$783 $265 $529 $1,577 $— $1,577                  (a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $32 million for the six months ended June 30, 2026 and $30 million for the six months ended June 30, 2025. CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited)
  Adjusted EBITDA by segment is comprised of the following: Three Months Ended June 30, 2026(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other Eliminations TotalRevenue$575  $178  $270  $1,023  $2  $(45) $980               Pari-mutuel taxes and purses (119)  (8)  (7)  (134)  —   —   (134)Gaming taxes (2)  (1)  (81)  (84)  —   —   (84)Marketing and advertising (16)  (6)  (8)  (30)  —   —   (30)Salaries and benefits (38)  (9)  (41)  (88)  —   —   (88)Content expense (1)  (78)  (2)  (81)  —   35   (46)Selling, general and administrative expense (14)  (4)  (12)  (30)  (24)  —   (54)Maintenance, insurance and utilities (13)  (3)  (9)  (25)  (3)  2   (26)Gaming equipment rental and technology costs (13)  (2)  (5)  (20)  —   8   (12)Food and beverage costs (4)  —   (4)  (8)  —   —   (8)Other operating expense(a) (37)  (15)  (18)  (70)  (1)  —   (71)Equity in income of unconsolidated affiliates —   —   50   50   —   —   50 Other income —   —   —   —   —   —   — Adjusted EBITDA$318  $52  $133  $503  $(26) $—  $477   Three Months Ended June 30, 2025(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other Eliminations TotalRevenue$541  $168  $266  $975  $2  $(43) $934               Pari-mutuel taxes and purses (116)  (8)  (7)  (131)  —   —   (131)Gaming taxes (1)  (1)  (80)  (82)  —   —   (82)Marketing and advertising (16)  (6)  (9)  (31)  —   —   (31)Salaries and benefits (38)  (9)  (43)  (90)  —   —   (90)Content expense (2)  (76)  (2)  (80)  —   32   (48)Selling, general and administrative expense (10)  (5)  (11)  (26)  (22)  1   (47)Maintenance, insurance and utilities (12)  (1)  (10)  (23)  (1)  2   (22)Gaming equipment rental and technology costs (12)  (1)  (5)  (18)  —   8   (10)Food and beverage costs (4)  —   (4)  (8)  —   —   (8)Other operating expense(a) (33)  (13)  (16)  (62)  —   —   (62)Equity in income of unconsolidated affiliates —   —   47   47   —   —   47 Other income —   —   1   1   —   —   1 Adjusted EBITDA$297  $48  $127  $472  $(21) $—  $451   Six Months Ended June 30, 2026(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other Eliminations TotalRevenue$876  $296  $532  $1,704  $4  $(65) $1,643               Pari-mutuel taxes and purses (195)  (12)  (18)  (225)  —   —   (225)Gaming taxes (4)  (1)  (156)  (161)  —   —   (161)Marketing and advertising (28)  (8)  (16)  (52)  —   —   (52)Salaries and benefits (74)  (17)  (84)  (175)  —   —   (175)Content expense (2)  (121)  (3)  (126)  —   44   (82)Selling, general and administrative expense (25)  (8)  (24)  (57)  (46)  —   (103)Maintenance, insurance and utilities (25)  (5)  (19)  (49)  (7)  4   (52)Gaming equipment rental and technology costs (27)  (3)  (9)  (39)  —   17   (22)Food and beverage costs (8)  —   (9)  (17)  —   —   (17)Other operating expense(a) (57)  (24)  (35)  (116)  (1)  —   (117)Equity in income of unconsolidated affiliates —   —   96   96   —   —   96 Other income —   —   1   1   —   —   1 Adjusted EBITDA$431  $97  $256  $784  $(50) $—  $734   Six Months Ended June 30, 2025(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other Eliminations TotalRevenue$818  $284  $533  $1,635  $4  $(62) $1,577               Pari-mutuel taxes and purses (188)  (12)  (22)  (222)  —   —   (222)Gaming taxes (3)  (1)  (152)  (156)  —   —   (156)Marketing and advertising (30)  (7)  (17)  (54)  —   —   (54)Salaries and benefits (70)  (17)  (87)  (174)  —   —   (174)Content expense (3)  (120)  (4)  (127)  —   41   (86)Selling, general and administrative expense (21)  (10)  (22)  (53)  (43)  1   (95)Maintenance, insurance and utilities (22)  (2)  (19)  (43)  (4)  4   (43)Gaming equipment rental and technology costs (24)  (2)  (9)  (35)  —   16   (19)Food and beverage costs (8)  —   (8)  (16)  —   —   (16)Other operating expense(a) (50)  (24)  (33)  (107)  —   —   (107)Equity in income of unconsolidated affiliates —   —   90   90   —   —   90 Other income —   —   1   1   —   —   1 Adjusted EBITDA$399  $89  $251  $739  $(43) $—  $696               (a)   Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs. CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited)     Three Months Ended June 30, Six Months Ended June 30,(in millions) 2026   2025   2026   2025 Reconciliation of Net Income to Adjusted EBITDA:       Net income attributable to Churchill Downs Incorporated$241  $217  $324  $294 Net income attributable to noncontrolling interests 1   1   1   1 Net income 242   218   325   295         Adjustments:       Depreciation and amortization 59   58   115   117 Interest expense 70   75   142   147 Income tax provision 86   74   116   93 Stock-based compensation expense 8   7   13   11 Pre-opening expense 2   2   5   6 Other expenses, net —   4   2   4 Asset impairments, net —   2   —   2 Transaction expense, net 1   2   2   2 Other income, expense:       Interest, depreciation and amortization expense related to equity investments 10   10   19   20 Other charges and recoveries, net (1)  (1)  (5)  (1)Total adjustments 235   233   409   401 Adjusted EBITDA$477  $451  $734  $696         Adjusted EBITDA by segment:       Live and Historical Racing$318  $297  $431  $399 Wagering Services and Solutions 52   48   97   89 Gaming 133   127   256   251 Total segment Adjusted EBITDA 503   472   784   739 All Other (26)  (21)  (50)  (43)Total Adjusted EBITDA$477  $451  $734  $696  CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL JOINT VENTURE FINANCIAL STATEMENTS
(Unaudited) Summarized financial information for our equity investments is comprised of the following:
 Summarized Income Statement Three Months Ended June 30, Six Months Ended June 30,(in millions) 2026   2025   2026   2025 Net revenue$228  $216  $444  $421         Operating and SG&A expense 142   135   279   265 Depreciation and amortization 6   6   12   12 Operating income 80   75   153   144 Interest and other expense, net (9)  (10)  (19)  (21)Net income$71  $65  $134  $123           Summarized Balance Sheet(in millions)June 30,
2026 December 31,
2025Assets   Current assets$97  $109 Property and equipment, net 309   315 Other assets, net 266   265 Total assets$672  $689     Liabilities and Members' Deficit   Current liabilities$102  $89 Long-term debt 765   803 Other liabilities 1   — Members' deficit (196)  (203)Total liabilities and members' deficit$672  $689  CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited) 2026 capital projects for the Company are as follows:(in millions)ProjectTarget
Completion2026
Planned Spend    Live and Historical Racing Segment  Churchill Downs RacetrackVictory RunApril 2028$25-30New HampshireRockingham Grand Casino (HRM Venue)Mid-2027$70-80All Other & Completed Projects  All Other Projects TBD$30-50Completed Projects Completed$55-60  Total:$180-220 Contact: Sam Ullrich
(502) 638-3906
[email protected]

LOUISVILLE, Ky., July 29, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN, “CDI,” “Company”) announced today that the Company has signed a definitive agreement to acquire 49% of United Tote Company (“United Tote”) from NYRA Content Management Solutions, LLC, a subsidiary of the New York Racing Association, Inc. (“NYRA”). CDI sold a 49% interest in United Tote to NYRA in April 2024, and NYRA agreed to utilize United Tote for their racetrack and gaming related pari-mutuel wagering systems (“tote services”). Concurrent with this transaction, NYRA has agreed to extend their tote services agreement with United Tote through 2035.

United Tote manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities (“OTBs”), and other wagering operators. United Tote provides totalisator services which accumulate wagers, calculate payoffs, and display wagering data to bettors to CDI-operated racing and gaming facilities as well as third-party racetracks, OTBs, and other pari-mutuel wagering operators.

This acquisition supports the CDI’s long-term strategy to own and vertically integrate key technologies and services related to pari-mutuel wagering and horse racing, while strengthening the Company’s position as a leading B2B distributor of horse racing content and provider of racing services. United Tote also enhances CDI’s ability to develop, deploy, and manage critical horse racing related wagering technology.

The transaction is expected to close by August 5, 2026.

About Churchill Downs Incorporated

Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has created extraordinary entertainment experiences for over 150 years, beginning with the Company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the acquisition, development, and operation of live and historical racing entertainment venues, the growth of the online wagering businesses, and the acquisition, development, and operation of regional casino gaming properties. https://www.churchilldownsincorporated.com/

About The New York Racing Association, Inc.

The New York Racing Association, Inc. (“NYRA”) is a not-for-profit organization franchised by New York State to conduct thoroughbred racing at Aqueduct Racetrack, Belmont Park and Saratoga Race Course. NYRA tracks are the cornerstone of New York’s horse racing economy, which is responsible for 19,000 jobs and more than $3 billion in annual statewide impact.

NYRA is the parent company of NYRA Bets, LLC, the national advanced deposit wagering platform launched in 2016 and currently available to customers in 38 states. NYRA Bets provides bettors the opportunity to wager on tracks worldwide from anywhere at any time. The NYRA Bets app is available for download on iOS and Android at NYRABets.com.

This news release contains various "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "seek," "should," "will," "scheduled," and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; changes in, or new interpretations of, applicable tax laws or rulings that could result in additional tax liabilities; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, and related economic matters on our results of operations, financial conditions, and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; negative shifts in public opinion regarding gambling that could result in increased regulation of, or new restrictions on, the gaming industry; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine ("HRM") manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; cybersecurity risk, including cybersecurity breaches, loss or misuse of our confidential information as a result of a breach including customers’ personal information, or IT system operational disruptions, could lead to government enforcement actions or other litigation; costs of compliance with increasingly complex laws and regulations regarding data privacy and protection of personal information; reliance on our technology services and catastrophic events, system failures, errors or defects disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates, disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; whether the objective of a strategic alternative review process will be achieved; the terms, structure, benefits and costs of any strategic transaction; the timing of any strategic transaction and whether any strategic transaction will be consummated on the terms proposed or at all; the risk that the announcement or exploration of strategic alternatives could have an adverse effect on our ability to retain key personnel and maintain relationships with partners, suppliers, employees, shareholders and other business relationships; the risk of any unexpected costs or expenses resulting from the exploration of strategic alternatives; the risk of any litigation relating to the exploration of strategic alternatives or any strategic transaction; and other factors described under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.

We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact: Sam UllrichMedia Contact: Breck Thomas-Ross(502) 638-3906(502) [email protected]@kyderby.com

The market expects Churchill Downs (CHDN - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis racetrack operator and gambling company is expected to post quarterly earnings of $3.51 per share in its upcoming report, which represents a year-over-year change of +13.2%.

Revenues are expected to be $974.36 million, up 4.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.13% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Churchill Downs?For Churchill Downs, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Churchill Downs will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Churchill Downs would post earnings of $1.06 per share when it actually produced earnings of $1.21, delivering a surprise of +14.15%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Churchill Downs doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Churchill Downs (CHDN - Free Report) . CHDN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.21, while its industry has an average P/E of 24.02. Over the last 12 months, CHDN's Forward P/E has been as high as 22.77 and as low as 12.94, with a median of 16.51.

We also note that CHDN holds a PEG ratio of 1.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHDN's industry has an average PEG of 1.64 right now. Over the past 52 weeks, CHDN's PEG has been as high as 3.70 and as low as 1.63, with a median of 2.57.

Investors should also recognize that CHDN has a P/B ratio of 6.42. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 9.22. Over the past 12 months, CHDN's P/B has been as high as 10.03 and as low as 5.93, with a median of 7.60.

Finally, investors should note that CHDN has a P/CF ratio of 10.49. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CHDN's P/CF compares to its industry's average P/CF of 24.05. CHDN's P/CF has been as high as 18 and as low as 10.22, with a median of 13.14, all within the past year.

These are only a few of the key metrics included in Churchill Downs's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CHDN looks like an impressive value stock at the moment.

LOUISVILLE, Ky., June 18, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (“CDI” or “the Company”) announced today that the Company will release second quarter 2026 financial results after the market closes on Wednesday, July 29, 2026, and host a related conference call to discuss the quarter on Thursday, July 30, 2026, at 9 a.m. ET.

Investors and other interested parties may listen to the call by accessing the online, real-time webcast at http://ir.churchilldownsincorporated.com/events.cfm or by registering in advance via teleconference here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are encouraged to dial-in 15 minutes prior to the start time. An online replay of the call will be available at http://ir.churchilldownsincorporated.com/events.cfm by noon ET on Thursday, July 30, 2026.

A copy of CDI’s news release announcing quarterly results and relevant financial and statistical information about the period will be accessible at http://www.churchilldownsincorporated.com.

About Churchill Downs Incorporated

Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has been creating extraordinary entertainment experiences for over 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the acquisition, development, and operation of live and historical racing entertainment venues, the growth of online wagering businesses, and the acquisition, development, and operation of regional casino gaming properties. www.churchilldownsincorporated.com

Investor Contact: Sam Ullrich
(502) 638-3906
[email protected]

Churchill Downs Inc (NASDAQ:CHDN) reported better-than-expected earnings for the first quarter, after the closing bell on Wednesday.

The average of price targets set by Wall Street analysts indicates a potential upside of 37.7% in Churchill Downs (CHDN). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

Churchill Downs (CHDN) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

First American, Marathon Petroleum and Churchill Downs stand out as undervalued PEG plays as investors pivot to value amid high rates.

LOUISVILLE, Ky., May 01, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company", "CDI", "we") announced today that Always A Runner captured the Lilies in the 152nd running of the Longines Kentucky Oaks, topping a field of 13 fillies on fast track conditions.

Sales-growth screen highlights CHRD, BAC and CHDN as buys as U.S. equities hit new highs despite tariffs, oil swings and sticky inflation.

Investors need to pay close attention to CHDN stock based on the movements in the options market lately.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Churchill Downs (CHDN - Free Report) is a stock many investors are watching right now. CHDN is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.21, while its industry has an average P/E of 23.31. Over the past 52 weeks, CHDN's Forward P/E has been as high as 22.77 and as low as 12.94, with a median of 16.51.

Investors will also notice that CHDN has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CHDN's industry currently sports an average PEG of 1.63. CHDN's PEG has been as high as 3.70 and as low as 1.63, with a median of 2.57, all within the past year.

Another valuation metric that we should highlight is CHDN's P/B ratio of 6.42. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CHDN's current P/B looks attractive when compared to its industry's average P/B of 8.94. Over the past 12 months, CHDN's P/B has been as high as 10.03 and as low as 5.93, with a median of 7.60.

Finally, our model also underscores that CHDN has a P/CF ratio of 10.49. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CHDN's current P/CF looks attractive when compared to its industry's average P/CF of 23.78. Within the past 12 months, CHDN's P/CF has been as high as 18 and as low as 10.22, with a median of 13.14.

These are just a handful of the figures considered in Churchill Downs's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CHDN is an impressive value stock right now.

An updated edition of the March 5, 2026, article.

Investing is often viewed through the lens of financial returns, but some sectors of the market raise questions that go beyond balance sheets and earnings reports. Among these are "sin stocks" —companies that generate revenues from products or services that some people consider ethically controversial. Despite the moral debate surrounding them, sin stocks have long attracted investors seeking stable cash flows, resilient demand and attractive shareholder returns.

Sin stocks refer to shares of companies operating in industries that are often considered socially or morally controversial, such as alcohol, tobacco, gambling, firearms and cannabis. Despite the ethical debate surrounding them, these businesses tend to generate steady demand and strong cash flows, making them a notable segment of the equity market.

The sin stock market functions much like any other segment of the equity market. These companies are publicly traded, generate revenues, report earnings and compete for market share.

Major players in these industries include tobacco giant Turning Point Brands (TPB - Free Report) , leading alcohol producer The Boston Beer Company Inc. (SAM - Free Report) , casino operators and companies dealing in cannabis. Because their products often have loyal consumer bases, these companies tend to maintain relatively stable sales even amid economic downturns.

For decades, "sin stocks" have occupied a unique corner of the investment world. While they often spark ethical debates, these companies have also built a reputation for generating resilient cash flows, rewarding shareholders and weathering economic downturns better than many traditional businesses.

As Environmental, Social and Governance (ESG) investing gains traction and societal attitudes continue to evolve, investors are once again asking a critical question: do sin stocks still deserve a place in a modern portfolio?

Why Do Investors Buy Sin Stocks?The appeal of sin stocks has little to do with controversy and everything to do with business fundamentals. Many sin industries benefit from relatively stable demand, regardless of economic conditions. Consumers tend to continue purchasing cigarettes, alcoholic beverages and gambling services even during recessions. This defensive quality can help protect revenues when discretionary spending declines.

Companies operating in the tobacco and alcohol markets often possess significant pricing power. Established brands can increase prices without experiencing a proportional decline in demand. This ability to pass costs on to consumers helps support profitability even during inflationary periods.

Another reason investors choose sin stocks is their high profitability and dividend potential. Many sin stocks operate in mature industries with predictable cash flows and limited capital expenditure requirements. As a result, companies frequently return substantial capital to shareholders through dividend payments, share repurchase programs and special distributions. Income-focused investors often find these businesses particularly attractive.

A growing number of institutional investors, pension funds and ESG-focused portfolios exclude sin stocks from their investment universe. This reduced participation can sometimes lead to lower valuations, creating opportunities for investors willing to own these companies.

Trends in Sin Stock SectorsSin stock sectors are evolving as consumer behavior, technology and regulations reshape traditional industries, such as alcohol, tobacco and gambling. Tobacco companies remain among the most prominent examples of sin stock investing. Although smoking rates have declined across many developed markets, industry leaders have maintained profitability through price increases, international expansion and investments in reduced-risk products, such as heated tobacco and nicotine pouches.

Alcohol producers benefit from strong brand loyalty and recurring consumer demand. Global spirits, beer and wine companies have increasingly focused on premium products, helping improve margins and drive revenue growth. Premiumization remains one of the most important trends shaping the industry, as consumers increasingly choose higher-quality products over larger quantities.

The gambling industry has undergone a significant transformation in the past decade. The rise of online casinos, mobile betting apps and legalized sports wagering has opened growth avenues for operators. Technology has fundamentally changed how consumers engage with gambling services, making the industry more accessible and scalable than ever before.

Cannabis is often viewed as the emerging segment of the sin stock universe. As legalization expands across various jurisdictions, companies are seeking to build national and global brands.

While the sector offers significant growth potential, it also presents elevated risks due to regulatory uncertainty, pricing pressures, limited profitability and capital constraints. For many investors, cannabis remains a high-risk, high-reward opportunity.

Regulatory changes and higher “sin taxes” remain a defining factor for these industries, influencing profitability and stock performance. Governments often impose higher taxes on tobacco, alcohol and gaming to discourage consumption while raising revenues. Overall, while the sin stock sectors face regulatory scrutiny, innovation, digital expansion and shifting consumer preferences continue to shape their long-term growth prospects.

If you are looking to capitalize on this trend, our Sin Stocks Screen makes it easy to identify high-potential stocks such as Monarch Casino & Resort, Inc. (MCRI - Free Report) , Churchill Downs Incorporated (CHDN - Free Report) , and Altria Group, Inc. (MO - Free Report) .

Explore 36 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.

Monarch Casino presents a compelling long-term investment case, supported by its premium regional resort strategy, disciplined execution and focus on operational excellence. The company continues to strengthen its competitive position in key markets by enhancing guest experiences through property upgrades, modern gaming amenities and high-quality hospitality offerings. Management remains focused on targeted marketing, cost discipline and strategic reinvestment in its flagship properties to attract higher-value customers and increase spending per visit.

Its concentrated portfolio provides greater control over service quality, capital allocation and expense management. Backed by consistent property enhancements and a focus on premium experiences, this Zacks Rank #1 (Strong Buy) company appears well-positioned to sustain visitation growth, support margin expansion and generate stable cash flows over the long term. You can see the complete list of today’s Zacks #1 Rank stocks here.

Churchill Downs has been strengthening its long-term growth profile through a combination of iconic racing assets, expanding Historical Racing Machine (HRM) operations and disciplined capital allocation. Management highlighted record second-quarter revenues and adjusted EBITDA, supported by strong Kentucky Derby wagering, premium hospitality demand and solid performance across its gaming portfolio.

The company is also benefiting from growth initiatives, including HRM expansions in Kentucky and Virginia, a new seven-year NBC media agreement beginning in 2026 and ongoing investments in the Churchill Downs racetrack. Robust free cash flow generation, aggressive share repurchases and anticipated tax savings further enhance shareholder value, positioning the Zacks Rank #2 (Buy) company for sustained earnings growth and margin expansion.

Altria offers an attractive investment proposition, supported by its strong pricing power, resilient cash flows and shareholder-friendly capital allocation strategy. The company continues to offset cigarette volume declines through effective pricing actions across its smokeable and oral tobacco businesses, driving margin expansion and earnings growth.

Altria is also advancing its smoke-free transformation through the expansion of on! PLUS and investments in reduced-risk products, positioning itself to benefit from evolving consumer preferences. Robust free cash flow generation supports its industry-leading dividend yield and ongoing share repurchases. The company currently has a Zacks Rank #2.