adidas stock weighs record Q3 against higher 2026 profit outlook

adidas reported record third-quarter results on October 29, 2026, and raised its full-year operating-profit outlook. The adidas press release showed broad-based growth, although management also pointed to pressure in lifestyle footwear.

Record Sales And Profit

Revenue rose 9 percent year over year to 7,252 million euros in the July-to-September period. Currency-neutral revenue increased 7 percent, while operating profit climbed 37 percent to a quarterly record of 1,008 million euros. The operating margin improved to 13.9 percent from 11.1 percent a year earlier.

Net income from continuing operations increased 48 percent to 711 million euros, producing earnings per share of 4.06 euros compared with 2.57 euros in the prior-year quarter. adidas also reported a 2.5 percentage-point improvement in gross margin to 54.3 percent.

The margin benefited from healthy full-price sales and a favorable channel mix, as well as a refund of around 200 million euros related to US tariff claims. The refund was a material one-time contribution to the quarter and should be considered when assessing the underlying margin trend.

Demand Remains Broad Based

Direct-to-consumer sales grew 17 percent on a currency-neutral basis. E-commerce revenue increased 18 percent and own-retail sales advanced 16 percent, with double-digit like-for-like growth across store formats. Performance revenue rose 14 percent, led by running, training and football, while apparel revenue increased 19 percent.

Regional growth was strongest in Japan and South Korea, Latin America, Greater China, North America and emerging markets. Europe was the exception, with revenue declining 4 percent as adidas kept wholesale sell-in conservative amid high inventory levels and promotional activity.

Footwear revenue was flat in the quarter. adidas said lifestyle footwear remained challenged by excess inventory and discounting, while direct-to-consumer footwear sales still grew 6 percent. That split leaves the product mix and inventory normalization important indicators for investors as the company moves into the final quarter.

Higher Profit Target For 2026

adidas maintained its currency-neutral revenue-growth forecast of 9 percent to 10 percent for 2026 but lifted its operating-profit outlook to around 2.5 billion euros from around 2.3 billion euros previously. The company said higher underlying profitability and the tariff refund would have supported a 2.6 billion-euro result, but it plans to reinvest around 100 million euros in the fourth quarter.

The additional spending is intended to improve operating leverage over the medium term. Management cited initiatives that may address stores, systems and organizational structures, with the stated aim of strengthening profitability beyond the current year.

For the first nine months, revenue rose 10 percent to 20,587 million euros and operating profit increased 21 percent to 2,287 million euros. Inventory stood at 5,739 million euros at September 30, up 5 percent in euro terms from a year earlier, while the company completed a 1 billion-euro share buyback and cancelled 6 million shares.

Stock Trades Above Prior Close

adidas stock traded at 180.20 euros on Lang & Schwarz at 10:43 CET on Thursday, November 12, 2026, 1.75 percent above the Xetra close of Wednesday, November 11. The move places the share near the upper end of the session's early trading range, while investors continue to balance the upgraded 2026 outlook against the company's caution on lifestyle footwear and its plans for further investment.

Germany's DAX provides the broader market setting for adidas and other German large-cap shares.

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