Business · NEWS EXPLAINER
Adidas raises 2026 profit target to €2.5bn after record quarter and tariff refund
The new outlook combines stronger trading, a roughly €200 million U.S. tariff refund and €100 million of planned reinvestment. Final third-quarter results are due October 29.
Adidas raised its 2026 operating-profit forecast to about €2.5 billion from €2.3 billion after reporting preliminary third-quarter revenue and operating profit at record levels. The October 20 update separates an improvement in trading profitability from a U.S. tariff refund and a planned fourth-quarter investment.
What the quarter delivered
Preliminary revenue reached €7.252 billion, up 9% in reported terms and 7% after removing currency movements. Operating profit increased 37% to €1.008 billion. Gross margin rose 2.5 percentage points to 54.3%. These are preliminary quarterly figures; they should not be read as the final, fully detailed earnings report.
How the new profit target fits together
The company expects roughly €100 million more operating profit from the profitability of its growth than previously assumed. A separate tariff refund of around €200 million takes the implied annual figure to €2.6 billion before planned reinvestment. Adidas will put about €100 million into fourth-quarter initiatives, leaving the published annual forecast at approximately €2.5 billion. The refund and the trading improvement therefore should not be added to the final target a second time.
A strong quarter still contains a footwear caution
Adidas said healthy full-price sales supported its margin while currency movements worked against it. Chief executive Bjørn Gulden also flagged excess inventory and discounting in lifestyle footwear across the marketplace. Reuters reported that retro apparel and the soccer World Cup had supported demand. Together, those details show why a record group result does not mean every product segment faces the same conditions.
What is still to come
The company kept its full-year currency-neutral revenue-growth expectation at 9% to 10%. It plans to publish final third-quarter results on October 29. That release is the next checkpoint for the full breakdown; the current announcement does not establish how much of the margin benefit will recur in later quarters. This report describes the operating update and makes no recommendation about buying or selling the shares.
