Madison Square Garden Entertainment Corp ( MSGE ) stock slid on Tuesday after it reported its fiscal second-quarter 2026 results.

Record-Breaking Christmas Spectacular Performance

The quarterly revenue rose by 13% year-on-year (Y/Y) to $459.94 million, topping the analyst consensus estimate of $450.94 million. 

In the second quarter of fiscal 2026, the company celebrated a record-breaking run for its Christmas Spectacular production.

During its 92nd holiday season, which concluded in January, over 1.2 million tickets were sold across 215 paid performances, marking the highest attendance in 25 years.

This compares to approximately 1.1 million tickets sold across 200 shows in the previous season.

The quarter also saw a busy schedule of events, with an increase in bookings compared to the same period last year, alongside the start of the New York Knicks and New York Rangers’ 2025-26 regular seasons at the Madison Square Garden Arena.

Financial Highlights and Outlook

Earnings per share of $1.94 missed the analyst consensus loss estimate of $2.19.

Revenues from entertainment offerings increased 13% Y/Y to $360.5 million. It reflected an increase in revenues from the presentation of the Christmas Spectacular production and other live entertainment and sporting events.

The quarterly arena license fees and other leasing revenues of $35.2 million increased 18% due to a combined four more Knicks and Rangers games played at The Garden in the current year quarter and higher other leasing revenues.

Food, beverage, and merchandise revenues rose 8% Y/Y to $64.3 million.

The company reported an adjusted operating income of $190.43 million, versus $164.01 million profit a year ago, primarily due to higher revenues.

As of December 31, cash and equivalents stood at $157.58 million.

Executive Chairman and CEO James L. Dolan highlighted strong momentum across the business in fiscal 2026, particularly with the Christmas Spectacular production and increased bookings.

He also stated that the company is on track to achieve significant growth in both revenue and adjusted operating income this fiscal year.

MSGE Price Action: Madison Square Garden shares were down 1.41% at $61.06 at the time of publication on Tuesday. The stock is approaching its 52-week high of $63.10, according to Benzinga Pro data.