IGT's Q1 2026 earnings highlight key drivers behind the anticipated revenue and same-store sales acceleration in the second half of the year, emphasizing backlog deliveries, retail initiatives, and operational enhancements.
Generated by Dafinchi AI. Source-grounded AI analysis, not investment advice.
What drove the expected second-half acceleration in revenue and same-store sales?
Based on IGT’s 2026 Q1 earnings transcript, the company’s expectation for stronger second-half revenue and same-store sales is driven by a mix of (1) product/order-backlog timing, (2) retail initiatives and channel expansion, and (3) normalization of jackpot volatility—plus (4) stronger underlying contributions from iLottery and Italy B2C.
IGT expects a more prominent second half than the first half, explicitly linked to the transition/outlook for product sales and order backlog deliveries. Management said the U.K. transition continues to weigh on revenue growth in the near term, but in the second half product sales should become a significant positive contributor with 3% to 5% contributions in each of the two remaining quarters, supported by an order backlog with deliveries completed between Q3 and the majority in Q4. 1
Mechanism: H2 acceleration is not just “better trading”—it’s also supported by when backlog converts into shipped/product sales. 1
For same-store sales specifically, management expects the trajectory to pick up in the second half because of retail initiatives, including:
IGT frames these as initiatives already discussed on the call that together are intended to create “a little bit of pickup in the second half… versus the first half.” 1
IGT ties part of the back-half acceleration to iLottery overachieving projections and continuing to contribute meaningfully:
Mechanism: iLottery provides a steadier, growth engine that can compensate when other categories face headwinds. 32
IGT also expects a more decisive ramp in Italy B2C during the second half:
Mechanism: A planned app functionality launch and marketing/consumer conversion effort is intended to increase retail/digital engagement during the back half of the year. 42
IGT reiterates that growth initiatives should contribute more meaningfully as the year progresses, including concrete channel actions:
Mechanism: These are operational levers (mobile wagering, vending, POS upgrades, distribution partnerships) designed to improve store-level throughput and access—i.e., same-store sales and revenue conversion. 5
Finally, management expects a normalization of the multistate jackpot to help performance in H2:
Mechanism: Jackpot conditions influence consumer demand and wager behavior; when jackpot patterns normalize, same-store sales and revenue can accelerate. 13
IGT’s expected H2 acceleration in revenue and same-store sales is primarily driven by:
All of these are framed by management as coordinated drivers that together produce a pickup in the second half versus the first half. 1
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