Galaxy Entertainment Earnings Rise 10% in Quarter
JP Morgan keeps its overweight rating on Galaxy Entertainment after the casino operator reported third-quarter results.
Updated on Nov. 7, 2026 in Casino
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Galaxy Entertainment reported third-quarter group adjusted EBITDA of HK$3.69 billion (US$470.53 million), up 10% year-on-year. JP Morgan maintained an overweight rating on the company, naming it the only top pick among Macau gaming operators.
Why it matters
The results show growth at the Galaxy Macau flagship in Cotai, where gaming revenue rose 8%, even as luck-adjusted EBITDA fell 7%. Analysts view the company's expansion plans as a path to future earnings growth.
Galaxy Macau posted HK$3.54 billion in EBITDA, up 15% year-on-year, while gaming revenue there rose 8% and mass-market revenue stood 58% above 2019 levels. StarWorld EBITDA fell 24%, and the company ended the quarter with net cash of HK$34.4 billion.
The players
Galaxy Entertainment
Galaxy Entertainment is a Macau-based casino operator that runs the Galaxy Macau resort in Cotai and other properties in the region.
JP Morgan
JP Morgan is a major global investment bank whose equity research division issues ratings on publicly traded companies, including casino operators.
The details
Galaxy's growth was driven by gaming revenue at its Cotai flagship resort, while Capella Macau remains in an ongoing ramp-up. The company's group adjusted EBITDA rose 10%, though luck-adjusted EBITDA declined 7% from a year earlier.
Timeline
Third quarter of 2026: Galaxy reports quarterly EBITDA and gaming results.
2027: Phase IV at Galaxy Macau is planned to open.
Market Landscape
Galaxy's mass-market gaming revenue sits 58% above its 2019 level, indicating that Macau's mass-market segment has continued to expand beyond its pre-pandemic baseline. JP Morgan's view that Galaxy is its only top pick among Macau operators points to competitive differences in how the market's recovery is being distributed among casino companies.
Galaxy's planned Phase IV opening in 2027 will add to its Macau footprint, expanding the number of resort venues visitors can access. Current operations at Galaxy Macau and Capella Macau continue as the company ramps up the newer property.
The takeaway
Galaxy's results show that its flagship Macau resort is driving growth even as other properties and luck-adjusted figures weaken. Readers tracking the sector can watch the 2027 Phase IV opening as a measure of whether that expansion delivers the earnings growth analysts expect.
What happens next
Galaxy's Phase IV expansion at Galaxy Macau is scheduled to open in 2027, which JP Morgan expects to significantly expand the company's footprint.
Further reading
Read more about the Casino industry and how operators like Galaxy are performing.
Source note: This article includes information reported by Macau Business.
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