TLDR DraftKings stock rose 9.31% last week after reporting Q4 revenue of $1.99 billion and swinging to a net profit of $136.43 million. The company’s Predictions feature now operates in 38 states, including California and Texas, which are off-limits to its core sportsbook. 2026 revenue guidance of $6.5B–$6.9B came in below analyst expectations of ~$7.3B, but Predictions revenue was excluded entirely. Jefferies reiterated a Buy rating with a $46 price target; Morgan Stanley also held a positive stance. CEO Jason Robins has projected Predictions could eventually generate up to $10 billion in gross revenue.
DraftKings has had a rough stretch. Despite posting 43% revenue growth, the stock sold off hard after the company issued 2026 guidance that disappointed Wall Street. But the past week told a different story.
DraftKings Inc., DKNG
DKNG climbed 9.31% as investors warmed to a combination of strong earnings, analyst support, and strategic moves that suggest the company’s growth story isn’t finished.
In Q4 2025, DraftKings reported revenue of $1.99 billion, up from $1.39 billion in the same period a year earlier. More importantly, it swung from a GAAP net loss to a net profit of $136.43 million.
That profitability milestone matters in an industry where many operators are still burning through cash. It signals that DraftKings is starting to show real operating leverage.
Jefferies reiterated its Buy rating with a $46 price target following the results. Morgan Stanley also maintained a positive outlook. Insider activity added to the bullish tone — director Harry Sloan made a $2.2 million stock purchase recently.
The company also received approval from the Arkansas Racing Commission to launch its online sportsbook in the state. That brings DraftKings‘ sports betting footprint to 30 U.S. states plus Washington D.C., Ontario, and Puerto Rico — covering more