Games Workshop's shares declined 2.8% in today's trading after the maker of Warhammer miniatures released its full-year results for the 52 weeks ending 31 May 2026. The update showed solid gains across the company's core operations but also revealed a pronounced fall in licensing revenue and a cut to the dividend that dented market enthusiasm.
For the year, the company reported total revenue of £659.7 million, an increase of 10.9%. Operating profit rose 5.3% to £275.0 million and profit before taxation increased 5.7% to £275.7 million. Earnings per share improved to 624.0p from 594.9p in the prior year.
Yet the standout weakness in the numbers was licensing revenue, which fell to £32.9 million from £52.5 million the year before - a decline of roughly 37%. The company told investors this shortfall was expected, attributing the prior year figure to a one-off favourable product release. At the same time, the board declared dividends per share of 485p, down from 520p in the prior year.
Management highlighted several operational positives. Core gross margin expanded to 71.1% from 69.5%, and the company said core sales growth reflected better stock forecasting together with record manufacturing and warehouse volumes. It reiterated its goal to expand geographically and to grow core sales on a monthly basis, providing forward-looking commentary intended to reassure markets.
However, a fresh cost pressure emerged in the form of new United States tariffs. Games Workshop said it expects to incur around £13 million of additional US tariffs in 2026/27, a headwind that markets had not fully factored in ahead of the results.
The wider market tone offered little support. US equities traded mixed to lower, with the S&P 500 down 0.2% and the NASDAQ off 1.0%, contributing to a cautious risk environment that also weighed on FTSE 250-listed leisure-products peers. Against this backdrop, investors focused on the licensing revenue contraction and the dividend reduction despite the strength in core metrics.
Market behaviour today also reflected what is commonly seen around results seasons: the shares had been trading at elevated levels prior to the update, and once the details were released the combination of the licensing decline, the lower dividend and the new tariff exposure prompted a reassessment of nearer-term earnings. Shares hit a session low of 18,710p before partially recovering to 19,650p. The stock remains within a 52-week trading range of 14,070p to 22,260p.
Summary: Games Workshop delivered a record-like performance in its core business with higher revenue, operating profit and EPS, but a marked fall in licensing revenue, a reduced dividend and the prospect of new US tariffs led to a negative market reaction.