| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 72 | — | 17.8x | Top tier | |
Growth | 52 | 111.8% | 7.1% | Around median | |
Quality | 39 | 3.3% | 4.5% | Bottom tier | |
Safety | 88 | — | 2.6x | Top tier | |
Capital Return | 82 | — | 2.12% | Top tier | |
Momentum | 67 | 75.7% | 2.9% | Top tier | |
Sentiment | 43 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Callaway Golf Company became a pure-play golf company after selling Jack Wolfskin in May 2025 and a 60% stake in Topgolf in January 2026. The company generates revenue from golf equipment, including clubs and balls under brands such as Callaway and Odyssey, and from golf-related apparel and products through Callaway and TravisMathew; in fiscal Q2 2026, Golf Equipment segment sales rose 4%, driven by strength in clubs and balls, while soft goods sales declined 4% due to shipment timing and currency pressures in Asia, and TravisMathew posted slight growth.
Revenue in fiscal Q2 2026 was approximately $612.2 million, representing reported year-over-year growth of 2%, while gross profit according to EDGAR data was approximately $306.7 million, equivalent to a gross margin of about 50.1%. Management's adjusted gross margin was 48.5% after improving by 460 basis points year over year. Net income according to EDGAR was approximately $75.2 million, with earnings per share of $0.40, while adjusted earnings before interest, taxes, depreciation, and amortization rose 36% to $125 million, exceeding the midpoint of management's guidance by approximately $22 million.
During the first half of fiscal 2026, revenue increased 6% and adjusted earnings before interest, taxes, depreciation, and amortization rose 33%, with gross margin improving by 360 basis points. The company ended fiscal Q2 2026 with a net cash position, holding $278 million in cash and cash equivalents against $74 million of debt, after repaying $1.4 billion of debt during the first half and repurchasing 5.9 million shares at a cost of approximately $84 million through June 30, 2026.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $19.57, within a relatively wide range of $17 to $22, and the consensus rating is “Buy”; the average is approximately 3.5% below the 52-week range high of $20.28, while the highest target exceeds that high. No positive price-to-earnings multiple is available because of the $318.3 million loss for the twelve months ended in 2026, so the valuation relies more heavily on improving adjusted earnings and the balance sheet following the Topgolf separation, while the second-half slowdown and cost volatility remain factors that temper the optimistic interpretation of the price target.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue was $612.2 million, up 2% year over year, while net income according to EDGAR reached $75.2 million and earnings per share reached $0.40. Golf Equipment sales rose 4%, and ball revenue jumped 15% due to the strength of Chrome Tour and Super Soft. Adjusted gross margin also improved by 460 basis points to 48.5%, while adjusted earnings before interest, taxes, depreciation, and amortization rose 36% to $125 million.
Management expects fiscal 2026 revenue of $2.045–$2.070 billion after raising the midpoint by $15 million. It also raised the adjusted earnings before interest, taxes, depreciation, and amortization range to $246–$260 million, an increase of $31 million at the midpoint. For fiscal Q3 2026, it is targeting revenue of $415–$435 million and adjusted earnings before interest, taxes, depreciation, and amortization of $10–$20 million.
The company completed the sale of a 60% stake in Topgolf in January 2026, after selling Jack Wolfskin in May 2025, returning to a golf-focused model. During the first half of fiscal 2026, it repaid $1.4 billion of debt, including $258 million of convertible notes and the remaining $163 million of the Term Loan B. As of June 30, 2026, it held $278 million in cash against $74 million of debt, in addition to available liquidity of $775 million.
Golf ball revenue rose 15% in fiscal Q2 2026 and 8% in the first half, with continued demand for Chrome Tour and Super Soft. The company's share of the U.S. ball market exceeded 23% in June 2026, up 250 basis points year over year. In clubs, the Quantum family and Tri force technology supported the increase in U.S. driver and woods share to approximately 25% since the beginning of fiscal 2026.
The company decided to extend the life cycle of certain iron products and postpone a major launch until fiscal 2027, while reducing low-margin business and increasing investment in fitting services. These actions coincide with more difficult comparisons after U.S. sell-through grew approximately 8% during the second half of fiscal 2025. Management also expects seasonally lower gross margins and slower year-over-year improvement, along with an approximately $12 million drag on adjusted earnings before interest, taxes, depreciation, and amortization in the second half from lower distribution income.
The company expects total tariff expense of approximately $43 million in fiscal 2026, compared with $34 million in fiscal 2025, although the new estimate is $7 million below its previous guidance. It submitted reimbursement requests in two tranches valued at $11 million and $32 million and had received the full first tranche and approximately $7 million of the second tranche as of the August 4, 2026 call. At the same time, the company faces higher costs for tungsten, energy, and petrochemical materials used in golf balls, making margins sensitive to geopolitical developments and oil prices.
