Games Workshop posted record annual profit and revenue, but a steep drop in licensing income and a lower dividend sent shares sliding on Tuesday.
Games Workshop Group shares fell sharply in early trading on Tuesday after the Warhammer maker reported record revenue and pre-tax profit for the 52 weeks to 31 May 2026, with a sharp decline in licensing income overshadowing another strong year for its core tabletop business.
Shares were trading at 19,544p as of mid-morning, down 3.3% from Monday’s close of 20,220p, having fallen as low as 18,710p earlier in the session, a drop of more than 7%. The stock remains within its 52-week range of 13,634p to 23,540p, having climbed sharply since touching that low last October.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Get up to £500 cashback for investing with IG.
Licensing slump offsets record core performance
Revenue for the year rose 6.8% to £659.7 million, with pre-tax profit up 4.9% to a record £275.7 million, according to the company’s full-year results published on Tuesday. Earnings per share rose to 624.0p from 594.9p. The core Warhammer miniatures business remained the growth engine, with core revenue up 10.9% to £626.8 million and core gross margin improving to 71.1% from 69.5%.
The drag came from licensing, where revenue fell 37% to £32.9 million from £52.5 million, a decline the company said was expected given the boost from the Space Marine 2 video game launch in the prior year. Games Workshop also flagged fresh cost pressure from US tariffs, having paid around £12 million in new tariffs during the year, partly offset by a £7.8 million reclaim following a Supreme Court ruling, and said it expects to pay a further £13 million in the new financial year. The total dividend for the year was cut to 485p from 520p.
The core business has been the standout performer for several years, with revenue growth driven by improved stock forecasting and record manufacturing and warehouse volumes. Licensing income is lumpier by nature, and last year’s results were flattered by the Space Marine 2 launch, making this year’s decline an expected comparison rather than a new problem. Games Workshop is also pressing ahead with its Warhammer 40,000 screen adaptation with Amazon, with production company United Artists and director Mike Flanagan joining the project alongside Henry Cavill.
Analysts at Jefferies said pre-tax profit beat the company’s May guidance by 4%, noting core operating profit rose 17% at constant currencies “despite the licensing headwind.” The broker said there was “little in here not to like,” pointing to improved margins, 12% growth in trade accounts and rising numbers of MyWarhammer customers and Warhammer+ subscribers. Chief executive Kevin Rountree said: “Games Workshop and the Warhammer hobby are in great shape,” adding that record group revenue and pre-tax profit reflected “another good performance from the core business.”
Games Workshop gave no detailed financial guidance for the new financial year, though it said it aims to grow core sales every month and continue expanding geographically. Progress on the Amazon screen projects, and how quickly new US tariff costs bite into margins, are likely to be the next things markets watch closely. For now, a record year has done little to stop shares giving back some of their recent gains.