Gray Media (NYSE:GTN) delivered stronger-than-expected second-quarter results on Friday, with a surge in political advertising revenue helping the broadcaster comfortably exceed Wall Street forecasts. Investors welcomed the performance, sending the shares more than 3% higher.
Earnings and Revenue Beat Expectations
The company reported adjusted earnings of $0.21 per share, significantly outperforming analysts’ consensus forecast for a loss of $0.03 per share.
Revenue increased 9% year over year to $839 million from $772 million, comfortably ahead of the market estimate of $794.13 million.
The strong quarter was primarily driven by robust political advertising demand ahead of the election cycle.
Political Advertising Exceeds Forecasts
Political advertising revenue reached $83 million during the quarter, well above the company’s guidance of $70 million.
The figure also compared with just $9 million in the second quarter of 2025 and exceeded the $47 million generated during the same period in 2024.
Executive Chairman and Chief Executive Officer Hilton Howell, Jr. said, “We are particularly pleased with political advertising, which significantly exceeded our second quarter guidance, and is trending ahead of not only 2024 but also 2022 year-to-date levels.”
Retransmission Revenue Continues to Grow
Net retransmission revenue rose 10% year over year to $150 million, slightly above the top end of management’s guidance.
Meanwhile, core advertising revenue declined 1% from the prior-year period to $357 million, reflecting ongoing softness outside the political advertising market.
Broadcasting expenses totalled $569 million, increasing 1% year over year but remaining below the company’s guidance.
Corporate expenses reached $37 million, exceeding expectations because of transaction-related costs.
Strong Election Cycle Supports Outlook
For the third quarter, Gray Media expects total revenue of between $935 million and $965 million.
Political advertising revenue is forecast to reach between $165 million and $185 million, reflecting continued momentum from the election cycle.
The company also expects net retransmission revenue to range between $147 million and $150 million.
The strong outlook suggests political advertising will remain a key earnings driver through the remainder of 2026.