Adidas posts record revenue of €7,252 million and raises annual profit outlook
Key Facts
Adidas reported record third-quarter results for 2026 on October 29, with revenue up 9% to €7,252 million from €6,630 million a year earlier, and up 7% excluding currency effects. The company said operating profit rose 37% to €1,008 million, a quarterly record, while the operating margin increased to 13.9% from 11.1% a year earlier. Net income from continuing operations rose 48% to a record €711 million. Basic and diluted earnings per share from continuing operations were €4.06, according to the official statement. The results came days after the company raised its annual revenue growth outlook, while third-quarter performance lifted its 2026 operating profit outlook to about €2.5 billion.
Sales growth varied across product categories: apparel revenue rose 19% on a currency-neutral basis, while footwear revenue was flat. Performance product revenue increased 14%, compared with 3% growth in lifestyle products. By channel, direct-to-consumer sales grew 17% excluding currency effects, while wholesale revenue rose 2%. The company attributed the limited wholesale increase to its cautious approach to supply, particularly in Europe. It said uncertainty, high inventories and promotional activity in the region had led it to be cautious in dealing with wholesale partners.
The gross margin improved 2.5 percentage points to 54.3%, supported by full-price sales and channel mix, Adidas said. The company added that the recovery of about €200 million in U.S. tariffs also contributed to the improvement, making part of the increase attributable to an exceptional factor. On inventory, the company reported €5,739 million as of September 30, down 4% from the end of the previous quarter. But inventory remained above its level a year earlier: it was up 2% on a currency-neutral basis and 5% in euros, compared with €5,471 million in September 2025. This puts improved margins alongside continued annual inventory growth, as the company said promotions and lifestyle footwear inventories remained challenges.
By region, sales rose 12% in North America and 13% in Greater China in the third quarter, according to Reuters. By contrast, currency-neutral sales in Europe fell 4% to €2.24 billion. Chief Executive Bjorn Gulden said the company continued to gain market share and was performing well, while the company said order books were strong despite difficulties in some European economies. European revenue had been affected by the region's weakness, while Adidas expects the market to return to growth in the final quarter of 2026, with high-single-digit growth. The company attributed some of this to shipments deferred into the fourth quarter and higher sales to wholesale partners.
On October 20, Adidas raised its 2026 revenue growth outlook to a range of 9%–10% on a currency-neutral basis, from its previous expectation of high-single-digit growth. In that update, the company kept its operating profit outlook at about €2.3 billion; it then raised the outlook to about €2.5 billion with the third-quarter results. That compares with the second quarter, when currency-neutral revenue grew 14% to €6,743 million, while operating profit was €574 million, versus €546 million a year earlier. In the third quarter, currency-neutral revenue growth slowed to 7%, while operating profitability accelerated clearly. The U.S. depositary receipt ADDYY closed at $93.73 on October 30, while Reuters reported a 4% rise in the Frankfurt-listed shares by 11:00 GMT on the results announcement day.
The company's financial calendar includes the Frankfurt Roadshow (Kepler) on November 3, 2026. The event follows Adidas's annual outlook update and its expectation that Europe will return to growth in the final quarter, supported by deferred shipments and higher wholesale sales. The company's 2026 revenue growth range remains 9%–10% on a currency-neutral basis, while its operating profit target is now about €2.5 billion following the third-quarter results. The performance picture is based on growth in apparel, direct channels and major markets, against flat footwear revenue and declining European sales. The company is also tracking inventory levels, which fell from the previous quarter but remained above last year's level.