Adidas Lifts 2026 Profit Outlook to €2.5 Billion on Record Quarter

Adidas posted third-quarter revenue of 7.25 billion euros, up 9 percent and the highest quarterly figure in its history, according to preliminary results released Tuesday. Operating profit rose 37 percent to 1.01 billion euros, also a record, and gross margin expanded 2.5 percentage points to 54.3 percent.

The German sportswear company now expects full-year 2026 operating profit of around 2.5 billion euros, up from its previous guidance of about 2.3 billion euros.

What drove the margin gain?

The company received the majority of its U.S. tariff claims during the quarter. It recorded a refund of around 200 million euros, which directly supported the 54.3 percent gross margin.

Two additional factors shaped profitability:

• Healthy full-price sales lifted realized pricing.
• Unfavorable currency developments worked against the margin.

Currency-neutral revenue growth for the quarter came in at 7 percent.

How much will 2026 profit rise?

Adidas expects currency-neutral revenue growth between 9 percent and 10 percent for the full year 2026. That growth trajectory should add roughly 100 million euros of operating profit beyond prior assumptions.

Combined with the approximately 200 million euros in tariff refunds, the math points to a potential 2.6 billion euros in 2026 operating profit. But Adidas has decided to reinvest around 100 million euros of that uplift in the fourth quarter into initiatives aimed at building greater operating leverage, in line with its communicated mid-term profitability targets. That reinvestment brings the official full-year projection to around 2.5 billion euros.

For sourcing and supply-chain teams, the takeaway is a company choosing to fund structural leverage rather than bank a headline beat — a deliberate trade of near-term margin for mid-term target credibility.

What did Gulden say?

Chief executive officer Bjørn Gulden called it another "great quarter" and said the company had achieved "the highest revenue ever in a quarter and the highest operating profit ever."

"Our brand, our product and our people are our strength," Gulden said in a statement.

He credited marketing investment and creativity with restoring global brand heat, and pointed to measurable payback from innovation spending. "Our investment in innovation is paying off, not only by great wins, stories and performances, but also with strong and profitable growth in football, running and training," Gulden said. "Our fantastic designers and development teams have created new apparel collections that are globally in high demand and currently fueling our lifestyle business."

Where does the business still strain?

Gulden flagged lifestyle footwear as the remaining weak spot, citing too much inventory and excess discounting in the marketplace. "We know this will soon normalize again," he said.

Rather than chase short-term maximization, he said Adidas will stay disciplined, strengthen its foundation for sustainable and profitable growth, and hold to mid-term targets.

Adidas will publish official third-quarter financial results on Oct. 29.