Flutter Flails as It Cuts 2026 Outlook, CEO Jackson Steps Down

Shares of Flutter Entertainment tumbled Wednesday after the gambling giant lowered its 2026 financial guidance and announced that Chief Executive Peter Jackson will step down.

Shares of FanDuel parent Flutter Entertainment fell 10% in early trading on above-average volume after the operator lowered its 2026 midpoint guidance to $2.65 billion in EBITDA and $17.91 billion in revenue—cuts of $210 million and $395 million, respectively.

When the Betfair owner delivered first-quarter results in May, it told investors it expected 2026 EBITDA of $2.86 billion on sales of $18.4 billion with those figures being downward revisions to the operator’s initial 2026 guidance of revenue of $18.4 billion on adjusted EBITDA of $2.97 billion.

The gaming company noted it’s seeing some signs of momentum in the current quarter, helped by the latter stages of the World Cup and “slightly favorable sports results.”

More Executive Turnover at Flutter

Flutter also announced that CEO Peter Jackson will step down from that role and the board of directors effective Sept. 30. He’ll be replaced by Dan Taylor who currently leads the company’s international division.

That unit “generated more than $9 billion of annual revenue and over $2.2 billion of adjusted EBITDA in 2025,” notes the company.

News of Jackson’s departure arrives as shares of Flutter have shed 69% of their value over the past year and just four months after the company told investors that Amy Howe was out as CEO of FanDuel.

In a note to clients this morning, Stifel analyst Jeffrey Stantial said Flutter’s CEO swap introduces some transition risk, but the appointment of Taylor is “tremendously regarded by us (and industry checks).” He rates the stock a “buy” with a $161 price target.

Flutter Sees $500M in 2027 Savings

The Paddy Power owner told investors it expects to save as much as $500 million next year due to various cost-cutting initiatives.

“We are on track to deliver in excess of the previously guided $300 million of savings by 2027, and approximately $200 million of additional cost savings that were announced as part of our UK gaming tax cost mitigation plans, also expected to be delivered in 2027,” said Jackson in a letter to shareholders.

It’s not clear if some of those savings are related to a reported reduction in headcount at FanDuel that’s rumored to have affected several hundred now former employees.