Adidas Posts Record Q3 Profit and Raises Full-Year Guidance After US Tariff Refund

Adidas reported a record third quarter on Thursday, with operating profit rising 37% to €1.01 billion, well above the €742 million analyst estimate, and revenue climbing 9% year over year to €7.25 billion, beating the €7.15 billion consensus. A roughly €200 million US tariff refund was the key swing factor, pushing gross margin to 54.3% against an estimated 51.3% and EPS to €4.06 versus the €2.82 forecast. Net income came in at €711 million, far exceeding the €509 million estimate. Currency-neutral revenue grew 7% for the quarter, driven by strength in running and football.

Growth was broad-based outside Europe, which declined 4% in currency-neutral terms, partly due to SAP-migration shipments expected to shift into the fourth quarter. North America rose 12%, Greater China 13%, Emerging Markets 15%, Latin America 16%, and Japan and South Korea 19%. Direct-to-consumer sales jumped 17%, with e-commerce up 18% and own retail up 16%, while wholesale grew a more modest 2%. Apparel was the standout product category, up 19%, while footwear was flat.

Adidas raised its full-year 2026 operating profit guidance to approximately €2.5 billion from roughly €2.3 billion. The updated guidance incorporates the full €200 million tariff refund and approximately €100 million of planned reinvestment in the fourth quarter, implying an underlying figure of around €2.6 billion before that reinvestment. The company also lifted its currency-neutral revenue growth outlook to 9-10%. CEO Bjørn Gulden said the company has "what it takes for 2026 and also for 2027." Adidas has executed €1 billion in share buybacks through the first nine months of the year, cancelling six million shares, while cash on hand surged 60% year over year to €1.65 billion.