Adidas AG Q1 2026 Results Overview
Adidas AG announced its first‑quarter 2026 financial results, which featured a record‑high net sales figure but fell short of market expectations, prompting a sharp decline in its share price.
Operating profit increased 5.1% year‑on‑year to €574 million (approximately $657.4 million), yet this figure was below Bloomberg’s consensus estimate of €615.6 million. Net sales reached a new peak of €6.74 billion, representing a 13.3% increase from the prior year, driven primarily by robust demand in the running and football categories and sustained strength in the Originals apparel line.
The company’s operating margin contracted to 8.5%, down from 9.2% a year earlier, as elevated advertising and promotional expenditures eroded profitability. Consequently, net income declined 4% to €355 million.
Geographically, China remained a key growth engine, with sales in the region rising 19% during the quarter.
Following the results, Adidas’ shares plunged as much as 17.5% on the Frankfurt exchange, wiping out the gains accumulated over the previous two months from World Cup‑related momentum.
Outlook and Guidance
Adidas reaffirmed its full‑year operating profit target of approximately €2.3 billion for 2026 and upgraded its revenue growth guidance to a range of 9%–10%, up from the earlier “high‑single‑digit” outlook.
The company also disclosed an expected recovery of $250 million to $300 million from refunds of U.S. trade tariffs, a benefit not yet reflected in the reported figures.
Management Change
Effective 1 September 2026, Birgit Kretschmer will assume the role of Chief Financial Officer, succeeding Harm Ohlmeyer.
Analyst Commentary
Morgan Stanley noted that the sales growth of 13.3% fell below the buyside expectation of +16% to +20%, while UBS warned that the weaker‑than‑expected sales trajectory could keep the stock under pressure in the near term.