Companies

adidas reports strong third-quarter results

Nov 3, 2026 Germany

The sportswear group has reported record third-quarter revenue and operating profit, driven by double-digit growth across most regions, despite weaker European sales and flat currency-neutral footwear revenue

“A great quarter for adidas. 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. Our brand, our product and our people are our strength. All markets, with the exception of Europe, grew double digit and DTC grew 17% globally. All this is proof that the adidas brand is doing well around the world!”, commented adidas CEO Bjørn Gulden.

Third-Quarter Results

In the third quarter of the 2025 fiscal year, adidas recorded a revenue of 7.25 billion euros, reflecting an increase of 9% on a comparable basis to the same period of last year. On a currency-neutral basis, revenue increased by 7%.

From a regional perspective, the company’s net sales grew by 13% in Greater China, by 12% in North America, by 16% in Latin America and by 19% in Japan and South Korea compared to the third quarter of 2025. In Emerging Markets, revenue increased by 15%, despite sales in several Middle Eastern countries being impacted by the regional conflict. All these markets posted strong double-digit DTC growth.

In contrast, adidas’ revenue in Europe declined by 4% year-on-year during the period. While the DTC business remained robust, wholesale performance was impacted by elevated inventory levels, increased promotional activity and a cautious sell-in strategy. Delays with SAP migration also shifted some deliveries and revenue from the third quarter to the fourth. As a result, the company expects high-single-digit growth is expected in this region in the next quarter, driven by delayed shipments and higher wholesale sales.

Breaking it down by product division, the sportswear company recorded a 19% increase in apparel revenue on a currency-neutral basis compared to the same period last year, reflecting strong and broad-based demand for the brand’s products across Performance and Lifestyle. Accessories also grew, increasing by 5% during the quarter.

By contrast, footwear revenue remained stable as the company continued to manage wholesale sell-in conservatively in order to protect its full-price product franchises in a marketplace dominated by promotions.

In the third quarter of this financial year, the company’s gross margin grew by 2.5 percentage points to reach 54.3%, up from the same period a year ago. This improvement was primarily driven by a 200 million US dollars tariff refund, robust full-price sales and a favourable sales channel mix. However, these gains were partially offset by unfavourable currency movements and higher US tariffs.

Despite higher operating expenses, adidas improved its operating leverage in the third quarter as expenses grew more slowly than revenue. This resulted in a 37% increase in operating profit in the quarter to a record 1.008 billion euros, with the operating margin rising year-on-year from 11.1% to 13.9%

In the three months to the 30^th of September, the company’s net income from continuing operations increased by 48% to 711 million euros, up from 482 million euros in the same quarter of 2025. This led to basic and diluted earnings per share from continuing operations of 4.06 euros, up from 2.57 euros.

Nine-Month Highlights

In the first nine months of 2026, adidas recorded revenue of 20.59 billion euros, representing a 10% increase on the same period last year and driven by strong brand momentum. On a currency-neutral basis, revenue increased by 11%.

The company’s nine-month net income from continuing operations increased by 23% year-on-year, rising from 1.29 billion euros to 1.59 billion euros. This led to basic and diluted earnings per share from continuing operations of 8.85 euros.

Full-Year Outlook

As announced on the 20^th of October, adidas upgraded its guidance for 2026 following better-than-expected third-quarter results.

The company now expects currency-neutral revenue growth of 9 to 10%. Operating profit is now projected to reach approximately 2.5 billion euros, up from the previous forecast of 2.3 billion euros. This reflects improved profitability driven by growth, as well as a 200 million euros tariff refund, which has been partly offset by a planned 100 million euros reinvestment in the fourth quarter.

Image Credits: houyhnhnm.jp

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