Adidas Lifts 2026 Profit Outlook to €2.5 Billion After Record Third Quarter

German sportswear giant Adidas has raised its full-year operating profit forecast to around €2.5 billion after posting the strongest quarter in its history, with a large refund of US tariff payments giving margins an extra lift, news agency dpa reported. The company had previously guided for operating profit of about €2.3 billion in 2026.

According to preliminary figures released by the Herzogenaurach-based group after the market close on Tuesday, third-quarter revenue rose 9% in reported terms to a record €7.252 billion, or 7% on a currency-neutral basis. Operating profit jumped 37% to €1.008 billion, which Adidas described as its highest quarterly result on record.

Chief executive Bjoern Gulden called the period “a great quarter for adidas” in the company’s statement, pointing to strong and profitable growth in football, running and training products.

Tariff refund boosts margins

Gross margin, a figure closely tracked by analysts, widened by 2.5 percentage points to 54.3% in the quarter. Adidas said part of that improvement came from a refund of roughly €200 million in US tariff claims, which was booked in the third quarter, and noted that it has now received the majority of its US tariff claims. Unfavourable currency movements weighed on the margin, partly offsetting the gain, while dpa attributed some of the strength to a healthy full-price business.

The company laid out how it arrived at the new profit target. Higher profitability from growth is expected to add about €100 million and the tariff refund about €200 million, which would take operating profit to around €2.6 billion. Adidas, however, plans to reinvest about €100 million in the fourth quarter in initiatives aimed at future operating leverage, leaving the official guidance at around €2.5 billion. Its forecast for currency-neutral revenue growth of 9% to 10% in 2026 was maintained, according to dpa.

Lifestyle footwear remains a weak spot

Not every part of the business is firing. Gulden acknowledged that the lifestyle footwear segment is facing a tough market, blaming excess inventory and heavy discounting across the wider industry. He signalled that the group would prioritise long-term positioning over squeezing out maximum short-term profit in the current environment.

Investors welcomed the upgrade. Adidas shares rose 2.6% on the Tradegate trading platform early on Wednesday, dpa reported, and market news service Newsquawk listed the stock about 3% higher during European trading, as better-than-expected corporate results helped offset concerns over unrest in France.

What’s next

The figures released so far are preliminary. Adidas is scheduled to publish its full third-quarter results on October 29, when investors will be looking for more detail on regional performance, the outlook for lifestyle footwear heading into the holiday season, and how the planned €100 million fourth-quarter reinvestment will be deployed.

#businessnews