Adidas posts record operating profit of €1,008 million and raises 2026 outlook
Key Facts
Adidas posted record operating profit of €1,008 million in the third quarter of 2026, up 37% from €736 million in the same period a year earlier, and raised its full-year operating profit forecast to around €2.5 billion from €2.3 billion. The company said revenue reached a record €7,252 million, up 9% year over year, or 7% excluding currency effects. The operating margin rose to 13.9% from 11.1% a year earlier. The results reflect improved profitability alongside continued sales growth, while the company expects currency-neutral revenue to increase between 9% and 10% in 2026. Net income from continuing operations also reached a record €711 million, up 48%.
Basic and diluted earnings per share from continuing operations rose to €4.06, compared with €2.57 a year earlier. For the first nine months of 2026, currency-neutral revenue increased 11% to net sales of €20.6 billion, while operating profit rose 21% to €2.3 billion. The operating margin for the period was 11.1%, up one percentage point from the first nine months of 2025. In the second quarter, the company had reported currency-neutral revenue growth of 14%. Following those results, it raised its full-year revenue growth forecast to 9%-10%, but kept its operating profit forecast at around €2.3 billion before the latest revision.
Gross margin in the third quarter rose 2.5 percentage points to 54.3%. Adidas said a recovery of around €200 million related to U.S. tariff claims contributed to the improvement, along with full-price sales and channel mix. In explaining the revision to its annual forecast, the company said improved profitability on sales growth added around €100 million, while the tariff recovery added around €200 million. The company decided to reinvest around €100 million in initiatives in the fourth quarter, leaving the expected net increase in operating profit at around €200 million compared with the previous forecast. Chief Executive Bjørn Gulden said the lifestyle footwear business is facing difficulties because of high inventory and discounting in the market.
Apparel led growth among the categories, with revenue up 19% on a currency-neutral basis. Performance revenue rose 14%, while lifestyle revenue increased 3%, and footwear revenue was unchanged. Across sales channels, direct-to-consumer sales grew 17% excluding currency effects. E-commerce rose 18%, and revenue at the company’s own stores increased 16%. The figures show a divergence between growth in apparel and direct channels on one hand, and stable footwear revenue and the challenges Gulden cited in lifestyle footwear on the other.
Performance varied across markets: currency-neutral sales rose 13% in Greater China, 12% in North America, 16% in Latin America, and 19% in Japan and South Korea. By contrast, revenue in Europe fell 4%. The company attributed part of the weakness in Europe to shipments and revenue being deferred to the fourth quarter because of the SAP ERP system transition in parts of the region. It said the related shipments and revenue would appear in the fourth quarter, when it expects high-single-digit growth in Europe. The fourth quarter therefore begins with some of the deferred European revenue expected to be recovered within the sales trajectory outlined by the company.
Adidas listed the release of its nine-month 2026 results on Oct. 29, 2026, in its financial calendar. Gulden said the company has what it needs for 2026 and 2027, and indicated that it expects to continue improving operating profit in 2027 without specifying a figure. The remarks follow the company’s increase in its operating profit forecast for the current year to around €2.5 billion. The company also expects currency-neutral revenue growth of between 9% and 10% in 2026. Europe, with deferred shipments and an expectation of high-single-digit growth in the fourth quarter, remains an area investors will watch in the coming period.