Adidas lifts 2026 profit outlook after record Q3

Adidas (ADSd) has raised its full-year 2026 operating profit outlook to around €2.5 billion, up from a previous target of about €2.3 billion. The upgrade follows stronger-than-expected preliminary third-quarter results that marked new records for both revenue and operating profit. Management said that underlying profitability, supported by demand for its products, together with a significant tariff refund, contributed to the improved outlook.

The company indicated that, without additional reinvestment, the combination of stronger organic performance and the tariff refund could have lifted 2026 operating profit toward roughly €2.6 billion. Instead, Adidas plans to reinvest about €100 million in the fourth quarter, leaving the updated projection at around €2.5 billion. This approach balances short-term profit enhancement with spending on future growth initiatives.

Preliminary figures show that Adidas delivered the highest quarterly operating profit in its history in the third quarter of 2026. Operating profit rose about 37% to approximately €1,008 million, reflecting both margin expansion and higher sales volumes. This performance marks a significant step-up compared with the prior year period and underpins the full-year guidance increase.

Third-quarter revenue also reached a record level, coming in at roughly €7.25 billion. This represents about 9% year-on-year growth, with currency-neutral revenue expansion around 7%. The company cited robust demand across its apparel and sports products portfolio, supported by healthy full-price sell-through, as key factors behind the top-line performance.

A substantial contribution to third-quarter earnings came from the receipt of most of Adidas’s U.S. tariff claims. The company recorded a corresponding tariff refund of roughly €200 million during the quarter. This one-off benefit, alongside improved underlying profitability, boosted operating profit and helped push quarterly results to record levels.

Adidas stated that the combined impact of the stronger organic performance and the tariff refund could have driven full-year 2026 operating profit to around €2.6 billion. However, the company plans to reinvest about €100 million in the fourth quarter. After this reinvestment, the updated operating profit guidance stands at approximately €2.5 billion for the year.

Alongside the profit upgrade, Adidas reiterated its outlook for currency-neutral revenue growth of between 9% and 10% for full-year 2026. This guidance reflects expectations of continued demand momentum following the strong third-quarter performance. The company’s revenue and profit targets frame its growth aspirations for the remainder of the year.

Adidas plans to release its final, detailed third-quarter 2026 financial results on October 29, 2026. The forthcoming report is expected to confirm the preliminary figures for revenue, operating profit, and the U.S. tariff refund. Investors and analysts will be able to assess the full segment breakdown and margin dynamics once the complete results are published.