Premium cinema technology company IMAX (NYSE: IMAX) reported Q3 2026 results topping the market’s revenue expectations, with revenue up 63.7% year on year to $174.6 million. Its non-GAAP profit of $2.21 per share was significantly above analysts’ consensus estimates.
For more on IMAX, read our free full research report.
IMAX (IMAX) Q3 2026 highlights:
- Revenue $174.6 million vs S&P analyst consensus of $163.3 million (63.7% year-on-year growth, 6.9% beat)
- Adjusted EPS $2.21 vs S&P analyst consensus of $1.02 (significant beat)
- Adjusted EBITDA $115.3 million vs analysts’ consensus estimates of $93.24 million (66% margin, 23.6% beat)
- Operating margin 42.9%, up from 27.2% in the same quarter last year
- Free cash flow margin 44.3%, down from 51.4% in the same quarter last year
- Market capitalization $2.7 billion
“What IMAX achieved goes beyond simply a ‘great quarter’ and transcends the many records we shattered in the period. What we believe we are witnessing is an awakening to the power and potential of our platform to impact global culture, unlock new commercial opportunities, and inspire a new level of demand and awe in audiences around the world,” said Rich Gelfond, CEO of IMAX Corporation.
Revenue growth
A company’s long-term revenue performance is one signal of its overall quality. Any business can deliver a good quarter or two, but the best consistently grow over the long haul. IMAX’s revenue grew at a strong 19.1% compounded annual growth rate over the last five years. Its growth beat the average business services company and shows its offerings resonate with customers.
Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. IMAX’s annualized revenue growth of 18.3% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. 
This quarter, IMAX reported year-on-year revenue growth of 63.7%, and its $174.6 million of revenue beat Wall Street’s consensus estimates by 6.9%.
Looking ahead, sell-side analysts expect revenue to decline by 1.8% over the next 12 months, according to S&P, a deceleration versus the last two years. This underwhelming projection suggests its products and services will face some demand headwinds. Still, the company is tracking well in other measures of financial health.
Adjusted operating margin
IMAX has been an efficient company over the last five years. It was one of the more profitable businesses in the business services sector, with an average adjusted operating margin of 16%.
IMAX’s adjusted operating margin rose by 22.5 percentage points over the last five years, as its revenue growth provided operating leverage.
This quarter, IMAX generated an adjusted operating profit margin of 42.9%, up 15.7 percentage points year on year. This was a positive development, reflecting greater efficiency.
Earnings per share
We track the long-term change in earnings per share, or EPS, for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
IMAX’s full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it’s at an inflection point.
As with revenue, examining EPS over a more recent period can provide insight into an emerging theme or development for the business.
IMAX’s EPS grew at a strong 99.7% compounded annual growth rate over the last two years, higher than its 18.3% annualized revenue growth. This indicates the company became more profitable on a per-share basis as it expanded.
Examining IMAX’s quality of earnings can help explain its performance. IMAX’s adjusted operating margin has expanded over the last two years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
In Q3, IMAX reported adjusted EPS of $2.21, up from $0.47 in the same quarter last year. The result came in well above analysts’ consensus estimates, a positive for shareholders. Over the next 12 months, Wall Street expects IMAX’s full-year EPS to shrink by 44.2% from $3.39 to $1.89, according to S&P.
Key takeaways from IMAX’s Q3 results
A wide revenue beat and EPS above analysts’ consensus estimates made this a solid quarter for IMAX. Still, the market seemed to be hoping for more: Shares edged lower 1.5% to $48.10 immediately after the report.
IMAX’s latest quarter matters, but longer-term fundamentals and valuation matter more when deciding whether the stock is a buy at its current price. For more on IMAX, read the full research report here (it’s free).
