Media broadcasting company Sinclair (NASDAQ: SBGI) reported Q3 2026 results beating Wall Street’s revenue expectations, with revenue up 15.5% year on year to $893 million. The company’s full-year revenue guidance of $3.57 billion at the midpoint came in 1.2% above analysts’ consensus estimates. Its GAAP profit of $0.60 per share was significantly above analysts’ consensus estimates.

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"Sinclair delivered strong third quarter results, with record mid-term political advertising revenue in both third and fourth quarters, and disciplined execution across the business. Political advertising revenue is expected to exceed our prior record year of 2024 as battleground races and the overall political environment helped drive record demand across our footprint. In addition, we have reached new network affiliation agreements with both ABC and CBS in recent weeks. Lastly, we are increasing our full year 2026 Adjusted EBITDA guidance to a range of $825 million to $835 million, which we note is higher than our 2024 Adjusted EBITDA of $816 million excluding the Diamond-related management fees received in that year."

Revenue growth

A company’s long-term performance is an indicator of its overall quality. Any business can deliver a good quarter or two, but many enduring ones grow for years.

With $3.38 billion in revenue over the past 12 months, Sinclair is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale.

Sinclair’s revenue declined by 11.4% per year over the last five years.

Long-term growth matters most, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Sinclair’s revenue over the last two years was flat, suggesting its demand was weak but stabilized after its initial drop.

Sinclair also breaks out the revenue for its most important segments, Distribution and Advertising, which are 33.7% and 47.7% of revenue. Over the last two years, Sinclair’s Distribution revenue (content distribution) averaged 2.2% year-on-year growth while its Advertising revenue (advertising sales) averaged 21.1% growth.

This quarter, Sinclair reported year-on-year revenue growth of 15.5%, and its $893 million in revenue exceeded Wall Street’s consensus estimates by 1.8%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, according to S&P. That underwhelming outlook indicates its newer products and services will not accelerate revenue growth yet.

Adjusted operating margin

Sinclair has performed well over the last five years. It demonstrated strong profitability for a business services company, with an average adjusted operating margin of 26.7%.

Looking at the trend in its profitability, Sinclair’s adjusted operating margin decreased by 78.8 percentage points over the last five years. Even though its historical margin was healthy, shareholders will want to see Sinclair become more profitable in the future.

In Q3, Sinclair generated an adjusted operating margin of 15.8%, up 8.3 percentage points year on year. This was a positive development, showing improved efficiency.

Earnings per share

We track the long-term change in earnings per share, or EPS, for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sinclair’s EPS and revenue declined by 6.6% and 11.4% annually over the last five years. Companies with falling revenue and EPS warrant caution, as diminishing earnings could imply changing secular trends and preferences. If conditions shift unexpectedly, Sinclair’s low margin of safety could leave its stock price susceptible to large downswings.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Sinclair, its two-year annual EPS growth of 55.4% was higher than its five-year trend. This acceleration made it one of the faster-growing business services companies in recent history.

In Q3, Sinclair reported EPS of $0.60, up from negative $0.01 in the same quarter last year. This result comfortably beat analysts’ consensus estimates, a positive outcome for shareholders. Over the next 12 months, Wall Street expects Sinclair to perform poorly. Analysts forecast its full-year EPS will swing from $1.38 to negative $0.15, according to S&P.

Key takeaways from Sinclair’s Q3 results

Sinclair delivered a solid Q3, with EPS beating analysts’ consensus estimates and revenue also topping Wall Street’s consensus. Those beats were key positives for the quarter. Shares rose 3.8% to $14.47 immediately after the results.

Sinclair had a solid quarter, but one earnings result doesn’t necessarily make the stock a buy. The latest quarter matters, but longer-term business quality and valuation carry more weight in an investment decision. Read more in the full research report here (it’s free).