Games Workshop results 2026: core growth offsets licensing decline

Games Workshop has delivered record annual revenue and profit before tax, powered by another strong performance from its core Warhammer business.

The headline figures are impressive, but the mix matters. Core revenue and margins improved strongly, while licensing income fell following the prior year's release of Space Marine 2. That decline held back overall profit growth and contributed to a lower annual dividend.

Investors can read the original company announcement or revisit the earlier Games Workshop full-year trading update for context.

Games Workshop's 2026 results at a glance

Key figure	2026	2025	Change
Core revenue	£626.8 million	£565.0 million	10.9%
Licensing revenue	£32.9 million	£52.5 million	-37.3%
Total revenue	£659.7 million	£617.5 million	6.8%
Core operating profit	£245.1 million	£211.8 million	15.7%
Operating profit	£275.0 million	£261.3 million	5.2%
Profit before tax	£275.7 million	£262.8 million	4.9%
Earnings per share	624.0p	594.9p	4.9%
Dividends paid per share	485p	520p	-6.7%

Constant currency revenue, which removes the effect of exchange-rate movements, was £666.9 million. That shows currency translation reduced reported revenue by £7.2 million.

The core Warhammer business did the heavy lifting

The clearest positive is the performance of Games Workshop's core business, covering its miniatures, stores, trade accounts and online operations.

Core revenue rose 10.9% to £626.8 million, or 12.2% at constant currency. Core operating profit increased faster, rising 15.7% to £245.1 million.

That lifted the core operating margin from 37.5% to 39.1%. Excluding Group Profit Share payments, the margin improved from 41.0% to 41.9%.

Gross margin also increased from 69.5% to 71.1%, helped by higher production volumes, lower material costs per unit and operating efficiencies. These benefits more than offset pressure from US tariffs and packaging taxes.

This matters because it demonstrates operational leverage. Games Workshop generated more profit from each additional pound of core revenue, despite continuing to invest in staff, stores, technology and production capacity.

Trade sales remain the standout growth engine

Trade revenue from independent retailers grew 17.2% to £405.3 million and now represents 65% of core revenue, up from 61% last year.

The number of independent retailers increased by around 1,000 to 9,100 across 71 countries. Regional trade growth was broad, including record sales in North America, Continental Europe, Australia and New Zealand, and Asia.

Asia was particularly strong, with trade revenue increasing 38.3% to £23.1 million. Games Workshop is building its local management presence in Shanghai and Seoul as it looks to expand the hobby further.

Retail and online sales were less convincing. Retail revenue increased 2.1% to £131.4 million, while online revenue slipped 0.6% to £90.1 million at actual exchange rates.

The group opened 42 stores and closed 14, ending the year with 598 locations. Management acknowledged that not every store performed satisfactorily, although all but a few remained profitable.

The gap between booming trade sales and slower direct-channel growth is worth watching. Independent retailers provide valuable global reach, but Games Workshop notes that their success is partly outside its control.

Licensing revenue fell as expected

Licensing revenue dropped from £52.5 million to £32.9 million, while licensing operating profit declined from £49.5 million to £29.9 million.

This was expected because the previous financial year benefited from the launch of Space Marine 2. Games Workshop said the title continues to generate income, alongside its wider video game portfolio, but licensing performance naturally depends on the release schedules and commercial success of third-party partners.

Licensing remains a highly profitable way to extend Warhammer into video games, films, television and animation. However, it is less predictable than miniature sales and is largely outside Games Workshop's direct control.

The Amazon partnership is progressing, although commercial terms and specific details were not disclosed. Initial outlines have been completed, with script work expected to follow. Games Workshop also highlighted animation projects based on Age of Sigmar and its Deathwatch Space Marines.

Investors should therefore view licensing as a potentially valuable but uneven income stream rather than a reliable source of annual growth.

Cash generation remains formidable

Games Workshop generated a net cash increase of £210.3 million before dividends, up from £197.5 million. Year-end cash and cash equivalents reached £182.9 million, compared with £132.6 million a year earlier.

The balance sheet remains debt free, excluding lease liabilities, and the company funds its operations through free cash flow.

Games Workshop spent £32.6 million on capital additions, including £9.9 million on Factory 4 in Nottingham. The 49,500 square foot facility was handed over in July 2026, with injection moulding machines and a tool room due to be installed.

A further warehouse at Sawley is expected to open in summer 2027, while the multi-year Systems Improvement Programme remains scheduled for completion during the 2028/29 financial year.

These investments should support higher volumes, but they also raise the cash required to operate and expand the business.

Why was the dividend lower?

Games Workshop declared and paid dividends of 485p per share, down from 520p. Total dividend payments fell from £171.4 million to £160.1 million.

This does not reflect weak cash generation. Instead, the prior year benefited from unusually high licensing cash receipts, while Games Workshop has increased its cash buffer from £100 million to £120 million to cover three months of working capital and support investment plans.

The company does not operate a progressive dividend policy. It returns cash judged to be genuinely surplus after allowing for working capital, tax, major investments and employee profit-sharing payments. As a result, dividends can move up or down from year to year.

Risks investors should watch

The core business is performing well, but several pressures deserve attention:

• Games Workshop expects around £13 million of new US tariffs in 2026/27.
• Operating expenses grew 13.8%, faster than the 10.9% increase in core sales.
• Retail and online growth was modest at actual exchange rates.
• Licensing revenue is volatile and dependent on third-party releases.
• Replacing legacy IT systems remains a significant operational project.
• Global conflicts could disrupt supplies, although the company says it has secured enough plastic for its 2026/27 plans.

Management also admitted that poor execution in the final week of May reduced sales by £1.5 million, with attention diverted towards the June 2026 launch of the 11th edition of Warhammer 40,000.

Core momentum provides the strongest signal

These results show a business whose main economic engine is strengthening. Core revenue, gross margin and operating profit all moved in the right direction, with trade growth broadening Warhammer's international reach.

The licensing decline makes the overall profit increase look modest, while lower dividends may disappoint investors focused on income. Yet neither issue changes the central feature of the results: Games Workshop sold more core products at higher margins while generating substantial cash and investing for future capacity.

The key question for the year ahead is whether the company can maintain that core momentum while absorbing tariffs, completing major infrastructure projects and improving its slower retail and online channels. You can follow future updates through the Games Workshop Group PLC company page.