Formula 1 revenue fell sharply during the second quarter of 2026, but analysts remain optimistic about the long-term outlook for Liberty Media’s F1 business, with sponsorship income alone potentially exceeding $1 billion in the coming years. Despite a difficult period shaped by disruption to the race calendar, industry experts believe the market may still be underestimating the strength of Formula 1’s commercial model.
With the championship currently in its traditional summer break, analysts are identifying potential upside for Liberty Media’s Formula One Group shares. According to CNBC’s Assiatou Hann, there is a clear opportunity for the stock to rise. Sports industry experts believe the current difficulties are largely cyclical and should not undermine Formula 1’s longer-term prospects.
Formula 1 revenue falls 38% after disrupted race calendar
The latest figures underline the immediate impact of the altered schedule. Formula 1 revenue fell 38% to $764 million during the quarter compared with the same period a year earlier, with four fewer races taking place as Middle East conflicts disrupted the calendar.
Despite that significant contraction, the stock gained almost 4% on the day the results were announced. Liberty Media also stressed that it remains active in media-rights negotiations and renewals, having recently secured another multi-year agreement with a traditional television partner.
The short-term financial decline therefore comes against a broader backdrop in which Formula 1 has developed into a multi-billion-dollar global business, supported by media rights, race promotion fees, sponsorship agreements and a rapidly expanding international fanbase.
Stefano Domenicali highlights rising Formula 1 engagement
Formula 1 President and CEO Stefano Domenicali emphasised that the sporting and commercial momentum remains strong despite the unusual circumstances surrounding the 2026 calendar.
“This season has showcased the very best of our sport, with competitive racing and fascinating storylines that are driving strong fan engagement, with attendance, audiences and digital impressions all up since the start of the season. Our sport continues to demonstrate its adaptability and creativity: the Bahrain Grand Prix will be held in Malaysia following the agreement announced last week,” Stefano Domenicali said.
The unusual arrangement means the 2026 Bahrain Grand Prix will take place in Malaysia, another example of how Formula 1 has attempted to adapt its calendar amid the disruption.
Stefano Domenicali added: “Our partnership with Apple continues to generate positive engagement, with viewership up year on year since the start of the season and total hours watched increasing by 13%. We continue to see momentum across our business, including the signing of a ten-year extension in Las Vegas and working with valued partners such as ServusTV and Pirelli.”
The comments reinforce Stefano Domenicali’s broader view that Formula 1 remains in an exceptionally strong position in terms of audience growth, commercial partnerships and its ability to expand into new markets.
Formula 1 shares lag other sports entertainment companies
Over the same period, several other sports entertainment companies delivered stronger stock-market performances. TKO Group Holdings, which controls UFC and WWE, gained 16% over the previous 12 months, while Madison Square Garden Sports Corp., owner of the New York Knicks, rose by 93%.
Formula 1-related shares lagged behind both companies, ending the period with a slight decline. Analysts nevertheless expect the stock to outperform going forward and generally remain positive about its prospects over the next phase.
The argument for a recovery is supported by Formula 1’s continued commercial expansion. Partnerships and new agreements have helped the championship grow dramatically in popularity. By the middle of the 2025 season, its audience was 63% higher than in 2018.
That growth continued following the success of Apple’s Formula 1 film, which further strengthened the sport’s global visibility and commercial reach.
Analyst sees Formula 1 sponsorship revenue exceeding $1bn
Bernstein analyst Ian Moore remains particularly positive about Formula 1’s prospects and maintains an outperform rating on the stock. His expectations extend beyond an immediate recovery from the weaker 2026 comparisons and towards the championship’s growing sponsorship portfolio.
In a note dated July 28, Ian Moore calculated that sponsorships alone could generate more than $1 billion across 2027 and 2028. The forecast reflects the continued strengthening of Formula 1’s portfolio of commercial and media partners, which could support a significant recovery in market valuations.
The contrast between the short-term figures and the longer-term outlook is therefore striking. Formula 1 has endured a difficult 2026 revenue comparison because of an unusually disrupted calendar, yet audience growth, expanding media partnerships and increasing sponsorship opportunities continue to give analysts reasons for optimism.
For Liberty Media, the challenge will be converting that commercial momentum into stronger financial results once the calendar normalises. If the projections prove accurate, the current downturn could ultimately represent only a temporary interruption in Formula 1’s wider growth trajectory.
Leave a Reply