Games Workshop [finance:Games Workshop Group plc] just reminded investors why it’s one of the best-performing stocks on the London Stock Exchange. Shares in the Warhammer maker jumped 12.5% on November 20, 2025, after the company released a trading update showing core revenue growth that significantly exceeded analyst expectations. The Nottingham-based tabletop gaming company now sits 36% higher than where it started the year, and up an impressive 52% over the past 12 months.
The company reported first-half core revenue of at least £310 million, representing a 15% increase compared to £269.4 million during the same period last year. Pre-tax profit for the six months ending November 2025 is expected to reach £135 million, up from £126.8 million the previous year. What makes these numbers particularly impressive is that they come during what the company describes as an off year in its product release cycle, without major new editions of its flagship games driving sales.
Licensing Revenue Takes Expected Hit
The trading update wasn’t all sunshine and record highs. Licensing revenue is projected at £16 million for the first half, down significantly from £30.1 million during the same period last year. This decline was widely anticipated and stems from the annualization of Warhammer 40,000: Space Marine 2, the blockbuster video game that sold over 7 million copies in less than a year after its September 2024 release.
Space Marine 2 generated enormous royalty payments for Games Workshop when it launched, but those revenues naturally decline after the initial sales surge. The game was developed by Saber Interactive and published by Focus Entertainment, with Games Workshop collecting licensing fees on every copy sold. The title became one of the most successful Warhammer video games ever made, prompting the announcement of Space Marine 3 just six months after the sequel launched.
Despite the licensing revenue drop, the strength of Games Workshop’s core business more than compensated. The company sells miniatures that fans assemble and paint for use in tabletop wargames, along with rulebooks, paints, tools, and accessories. This direct-to-consumer model generates higher profit margins than licensing deals and demonstrates that the Warhammer brand remains incredibly powerful even without blockbuster video game releases driving awareness.
Dividends Up 75% Year to Date
Games Workshop announced another £1 per share dividend to be paid in January 2026, bringing total dividends so far this financial year to £3.25 per share. That represents a 75% increase compared to the £1.85 per share distributed at the same point last year. For long-term shareholders, this continues a pattern of exceptional returns that have made Games Workshop one of the FTSE 100’s greatest success stories.
Since 2015, the company has delivered an average annual return of 31.7% when combining capital gains and dividends. The stock has surged 4,160% since 2000, turning patient investors into very wealthy ones. The share price hit record highs following the latest trading update, with the company approaching a market value of £6 billion.
Amazon Deal Creates Future Upside
One of the most exciting long-term catalysts for Games Workshop is the finalized agreement with Amazon [finance:Amazon.com, Inc.] for film and television productions set in the Warhammer 40,000 universe. The deal was confirmed in December 2024 after months of negotiations that reportedly came down to the wire, with Amazon having set a deadline for creative guidelines to be established or the project would be scrapped.
Henry Cavill, the actor known for playing Superman and Geralt in Netflix’s Witcher series, is attached to the project as both star and executive producer. Amazon secured exclusive rights to create movies and TV shows in the Warhammer 40,000 universe, with an option to license equivalent rights for the Warhammer Fantasy universe following the release of the initial production. The deal also includes merchandising rights.
Analysts at Jefferies noted that if the Amazon productions become hits, they could significantly boost Games Workshop’s sales of miniatures, books, and other products. This represents a potential flywheel effect where successful media adaptations drive new fans to the tabletop hobby, creating long-term revenue growth beyond the licensing fees from the productions themselves.
Product Cycle and Future Growth
The fact that Games Workshop achieved 15% core revenue growth during an off year in its product cycle is particularly encouraging. The company operates on a cadence where major new editions of Warhammer 40,000, Age of Sigmar, and other game systems drive sales spikes in certain years. The previous two years included launches of new editions for its main intellectual properties, which typically generate strong comparable figures that make growth difficult in subsequent periods.
Games Workshop is investing in future capacity by building a fourth factory to keep up with demand. Global expansion continues, particularly in markets where tabletop gaming is growing. The company operates through a mix of company-owned retail stores, independent retailers, and direct online sales, giving it multiple channels to reach customers worldwide.
Margin Improvement Drives Profits
Russell Pointon, an analyst at Edison, noted that the first-half profit increase implies good improvement in the core operating margin versus the same period last year. The achieved first-half profit represents just over 60% of full-year profit estimates, suggesting the company is well-positioned to meet or exceed annual guidance. Improved operating leverage as sales grow demonstrates the scalability of Games Workshop’s business model.
The company had previously warned that tariff plans under former US President Donald Trump could potentially wipe £12 million off its profits. The latest trading update didn’t provide additional commentary on tariff impacts, but the strong profit growth suggests Games Workshop is managing these headwinds effectively through pricing power and operational efficiency.
FAQs
How much did Games Workshop stock increase after the trading update?
Games Workshop shares surged 12.5% on November 20, 2025, following the release of first-half trading results that exceeded analyst expectations. The stock is now up 36% year-to-date and 52% over the past 12 months.
What is Games Workshop’s core revenue growth for the first half?
The company reported core revenue growth of 15%, reaching at least £310 million for the six months ending November 2025, compared to £269.4 million during the same period the previous year.
Why did licensing revenue decline for Games Workshop?
Licensing revenue dropped to £16 million from £30.1 million due to the annualization of Warhammer 40,000: Space Marine 2. The video game generated massive royalties when it launched in September 2024, but those revenues naturally decline after the initial sales surge.
How successful was Space Marine 2?
Warhammer 40,000: Space Marine 2 sold over 7 million copies in less than a year, making it one of the most successful video games based on the Warhammer franchise. The game sold 4.5 million copies in its first month alone.
What is the Amazon Warhammer deal about?
Amazon finalized an agreement with Games Workshop in December 2024 to create films and television series set in the Warhammer 40,000 universe. Henry Cavill is attached to the project as star and executive producer, with Amazon holding exclusive rights to develop the franchise.
How much are Games Workshop dividends increasing?
Games Workshop announced dividends totaling £3.25 per share so far this financial year, representing a 75% increase compared to £1.85 per share at the same point last year.
What is Games Workshop’s long-term stock performance?
Since 2015, Games Workshop has delivered an average annual return of 31.7% including capital gains and dividends. The stock has surged 4,160% since 2000, making it one of the FTSE 100’s best-performing companies.
Conclusion
Games Workshop’s latest trading update demonstrates the enduring strength of the Warhammer brand and the company’s ability to grow its core tabletop gaming business even without blockbuster video game releases driving licensing revenue. The 15% core revenue growth during an off year in the product cycle exceeded expectations and drove profit margins higher, while the 75% dividend increase rewards patient shareholders. With the Amazon streaming deal creating potential for massive future upside, a fourth factory being built to meet demand, and a loyal global fanbase that continues to expand, Games Workshop looks positioned to continue its remarkable multi-decade run of shareholder value creation. For a company that sells miniature plastic soldiers and paint, it’s delivering returns that would make even the God-Emperor of Mankind proud.