Madison Square Garden Entertainment just saw its stock drop about 5% to US$84.29, even though the headline from these results is not a collapse in demand but a test of how much investors are willing to pay for growth. The company delivered more than US$1.0b in revenue for FY26 and reported adjusted operating income of US$262m. The real flashpoint is valuation and balance sheet strain. Earnings sit against a P/E around 60x and roughly US$579m of debt, which makes a down day in the share price look more like a sentiment reset rather than a shock to the business story.

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