Adidas raises full-year profit outlook to 2.5 billion euros after record Q3

German sportswear giant Adidas reported record financial results for the third quarter of 2026, supported by robust direct-to-consumer (DTC) expansion and double-digit apparel growth across its Performance and Lifestyle categories. Group revenues rose 9 percent to 7.25 billion euros (8.08 billion dollars) during the quarter, or 7 percent on a currency-neutral basis. Consequently, the group upgraded its full-year 2026 outlook, projecting operating profit to reach approximately 2.5 billion euros.

Operating profit expands as gross margins improve

Operating profit for the quarter climbed 37 percent year-over-year (YoY) to 1.01 billion euros, delivering an operating margin of 13.9 percent. Net income from continuing operations grew 48 percent to 711 million euros. Gross margin gained 2.5 percentage points to reach 54.3 percent, bolstered by healthy full-price sell-through rates and a 200 million euro tariff refund.

For the first nine months of 2026, currency-neutral sales increased 11 percent to 20.6 billion euros. Operating profit over the nine-month period reached 2.29 billion euros, reflecting an operating margin of 11.1 percent. The business also completed a one billion euro share buyback during the period, cancelling six million repurchased shares.

Performance and apparel momentum offset footwear caution

Apparel revenues grew 19 percent on a currency-neutral basis, led by Originals and Football collections. By contrast, footwear revenue remained flat as the group maintained conservative wholesale sell-in volumes to safeguard full-price positioning amid heightened marketplace promotional activity. In DTC channels, footwear sales increased 6 percent, driven by Running and Training.

Performance division sales expanded 14 percent on a currency-neutral basis, propelled by kit launches for partner football clubs including FC Bayern Munich, Liverpool FC, and Real Madrid, as well as podium sweeps in marathon running. Lifestyle segment revenues rose 3 percent, supported by the introduction of the adiSignature line and designer collaborations with Jennie, Arte Antwerp, and Simone Rocha.

“A great quarter for Adidas,” said Adidas chief executive officer, Bjørn Gulden. “We achieved the highest revenue ever in a quarter with 7,252 million euros and the highest operating profit ever with 1,008 million euros. All markets, with the exception of Europe, grew double digit and DTC grew 17% globally.”

Group upgrades full-year operating profit target to 2.5 billion euros

Following the third-quarter performance, Adidas raised its full-year 2026 guidance, expecting currency-neutral sales to increase between 9 percent and 10 percent. Management plans to reinvest roughly 100 million euros into operational leverage initiatives during the fourth quarter. Full-year operating profit is now projected to hit around 2.5 billion euros, up from previous guidance of 2.3 billion euros.