Adidas reported record quarterly revenue for the third quarter of 2026, supported by strong demand for apparel, running gear, football products and other performance-sports categories. The German sportswear company generated €7.25 billion in revenue, up 9% from €6.63 billion a year earlier. Currency-neutral revenue increased 7%, reflecting continued demand across most major markets.
Apparel was a major growth driver, with currency-neutral sales rising 19%, while the Performance business grew 14%. Direct-to-consumer sales also strengthened, helped by higher e-commerce and retail sales. Adidas recorded a 37% increase in operating profit to €1.01 billion and raised its full-year profit outlook to approximately €2.5 billion, reinforcing its focus on profitable growth despite discounting pressure in parts of the footwear market. Adidas official results
Key Takeaways
- Record quarterly revenue: Adidas generated €7.25 billion in Q3 2026, up 9% year over year.
- Apparel leads growth: Currency-neutral apparel revenue increased 19%.
- Performance sports remains strong: Performance revenue rose 14%, supported by running, football and training.
- Profitability improves: Operating profit climbed 37% to €1.01 billion, while net income from continuing operations rose 48% to €711 million.
- Direct sales expand: Direct-to-consumer revenue grew 17%, with e-commerce up 18%.
- Outlook raised: Adidas expects 2026 operating profit of approximately €2.5 billion, compared with its previous expectation of around €2.3 billion.
- Europe remains a challenge: Regional revenue fell 4% in the quarter amid retailer discounting and elevated inventory levels.
Adidas Q3 2026 Financial Results
Adidas’ latest results show that revenue growth is translating into stronger operating profitability. The company benefited from higher apparel demand, improved gross margins and growth in its own sales channels.
Quarterly performance comparison
| Financial metric | Q3 2025 | Q3 2026 | Year-over-year change |
|---|---|---|---|
| Revenue | €6.63 billion | €7.25 billion | +9% |
| Currency-neutral revenue growth | — | — | +7% |
| Gross margin | 51.8% | 54.3% | +2.5 percentage points |
| Operating profit | €736 million | €1,008 million | +37% |
| Operating margin | 11.1% | 13.9% | +2.8 percentage points |
| Net income from continuing operations | €482 million | €711 million | +48% |
| Direct-to-consumer sales growth | — | — | +17% |
Source: Adidas’ Q3 2026 financial results. Revenue and profit figures are reported in euros; growth rates are year over year.
The figures indicate that Adidas improved profitability faster than revenue. Its operating margin increased to 13.9%, meaning the company retained more operating profit from each euro of sales than it did a year earlier.
The improvement reflects stronger product demand, a favorable sales-channel mix and a tariff-related refund received during the quarter. Consequently, the profit increase should not be attributed entirely to underlying demand growth.
Apparel Becomes a Major Growth Engine
Apparel was one of the strongest contributors to Adidas’ quarterly performance. Currency-neutral apparel revenue increased 19%, reflecting demand across both performance and lifestyle collections.
Football and Originals apparel recorded particularly strong growth. The company also reported gains across sportswear, running and training products, indicating that demand was not limited to a single category.
Adidas has expanded its clothing collections through seasonal designs, updated materials and collaborations. These products help the company reach consumers who purchase sportswear for everyday use as well as customers who buy performance apparel for training and competition.
The apparel business is strategically important because it allows Adidas to participate in multiple consumer occasions, from professional sport to casual fashion. Strong clothing sales can also help balance periods when individual footwear franchises face heavier competition or promotional pressure.
Performance sports outpaces lifestyle
Adidas’ Performance business recorded 14% currency-neutral revenue growth in Q3. Running, football and training were among the key contributors.
Running remains an important category for the company, with its Adizero range helping strengthen its position in competitive and recreational running. Football products, including club kits and fan merchandise, also benefited from demand around major teams and the start of the new club season.
Lifestyle revenue increased 3%, with growth led by Originals apparel. However, lifestyle footwear faced a more difficult market, characterized by elevated inventories and promotional activity.
Footwear revenue was flat overall during the quarter. Adidas said it continued to manage wholesale shipments conservatively to protect full-price sales and avoid pushing excess inventory into retail channels.
This approach may constrain reported wholesale growth in the short term, but it can help the company protect brand value and margins over time.
Direct-to-Consumer Sales Strengthen
Adidas’ direct-to-consumer (DTC) business was another important growth driver. Currency-neutral DTC revenue increased 17% during the quarter, supported by both online sales and company-owned stores.
| Sales channel | Q3 2026 currency-neutral growth |
|---|---|
| Total direct-to-consumer | +17% |
| E-commerce | +18% |
| Own retail stores | +16% |
| Wholesale | +2% |
Source: Adidas Q3 2026 results.
The figures show that sales through Adidas’ own channels grew substantially faster than wholesale revenue. Direct sales give the company more control over customer experience, product presentation, promotions and pricing.
The shift also has financial implications. A stronger direct-sales mix can support gross margins, although it requires investment in digital platforms, stores, logistics and customer service.
Wholesale remains an important distribution channel, but Adidas is taking a disciplined approach in markets where retailers are carrying high inventories or discounting heavily.
Regional Performance: China and North America Grow
Adidas recorded growth across most major markets, although Europe remained weaker than other regions.
| Market | Q3 2026 currency-neutral revenue growth |
|---|---|
| Greater China | +13% |
| North America | +12% |
| Latin America | +16% |
| Japan and South Korea | +19% |
| Emerging Markets | +15% |
| Europe | -4% |
Source: Adidas Q3 2026 results.
Greater China and North America were particularly important markets, both recording double-digit growth. Greater China remains strategically significant for global sportswear brands because of its large consumer market and competition among international and domestic labels.
Europe, by contrast, experienced a 4% revenue decline. Adidas attributed the weakness partly to elevated retailer inventories, promotional activity in lifestyle footwear and a conservative wholesale approach. A planned systems migration also delayed some wholesale deliveries into the fourth quarter.
Reuters reported on October 29 that Adidas expects Europe to return to growth in Q4, with high-single-digit regional growth anticipated as delayed shipments move into the period and wholesale orders increase. The forecast is an expectation, not a completed result. Reuters report
Profitability Improves, but Tariff Refunds Matter
Adidas’ gross margin increased by 2.5 percentage points to 54.3%. The company received approximately €200 million from US tariff claims during the quarter, contributing to the improvement.
Healthy full-price sales and a favorable channel mix also supported gross margin. However, unfavorable currency movements and higher US tariffs continued to create pressure.
Operating profit rose to €1.008 billion, the highest quarterly level in the company’s reported history. Net income from continuing operations increased to €711 million from €482 million a year earlier.
The distinction between recurring performance and one-off or timing-related benefits is important. The tariff refund boosted the quarter’s profitability, while apparel demand, channel mix and product performance offer a better indication of the underlying business trajectory.
Adidas is also continuing to invest in marketing, product development and distribution. Marketing and point-of-sale expenses reached €833 million in Q3, up 4% year over year, partly reflecting World Cup-related brand investment.
Adidas Raises Its 2026 Profit Outlook
Following the stronger-than-expected third-quarter performance, Adidas raised its full-year operating-profit outlook.
| Full-year 2026 metric | Updated outlook |
|---|---|
| Currency-neutral revenue growth | 9%–10% |
| Operating profit | Approximately €2.5 billion |
| Previous operating-profit outlook | Approximately €2.3 billion |
Adidas said stronger operating performance supported an improvement in its profit expectations. The company also plans to reinvest around €100 million in the fourth quarter in initiatives intended to improve future operating leverage.
The updated outlook suggests management expects demand in performance categories and apparel to remain supportive through the end of the year. However, the business still faces risks from currency movements, tariffs, consumer spending and discounting in lifestyle footwear.
The Bigger Picture
Adidas’ latest results illustrate how a sportswear company can grow through a combination of performance innovation, apparel demand, lifestyle products and direct customer relationships. Strong running, football and training sales are helping the company build momentum, while e-commerce and company-owned stores provide additional control over distribution and pricing.
The challenge is to sustain that growth without sacrificing profitability through excessive promotions or inventory accumulation. The improvement in margins and the raised profit outlook are encouraging, but the contribution from tariff refunds means investors should also watch underlying sales, regional trends and operating costs in subsequent quarters.
FAQs
1. How much revenue did Adidas report in Q3 2026?
Adidas reported revenue of €7.25 billion in Q3 2026, up 9% from €6.63 billion in the same quarter of 2025.
2. Which business category drove Adidas’ revenue growth?
Apparel was a leading contributor, with currency-neutral revenue rising 19%. The Performance business grew 14%, supported by running, football and training.
3. How much did Adidas’ operating profit increase?
Operating profit rose 37% to €1.008 billion in Q3 2026, compared with €736 million a year earlier.
4. Why did Adidas’ gross margin improve?
Gross margin increased to 54.3%, supported by approximately €200 million in US tariff refunds, healthy full-price sales and a favorable channel mix. Currency movements and higher tariffs remained negative factors.
5. What is Adidas’ operating-profit outlook for 2026?
Adidas expects full-year operating profit of approximately €2.5 billion, up from its previous outlook of around €2.3 billion. It also expects currency-neutral revenue growth of 9% to 10%.
Looking Ahead
Adidas enters the final quarter of 2026 with stronger profitability, growing demand for apparel and performance products, and an improved full-year outlook. The company’s ability to sustain full-price sales, expand direct-to-consumer channels and maintain momentum in running and football will be important indicators of the durability of its growth.
Europe’s expected recovery is another key factor to watch, particularly as delayed shipments move into Q4 and wholesale orders improve. Investors and industry observers will also monitor whether Adidas can maintain its margins after the tariff-refund benefit and continue to manage inventory carefully in a competitive global sportswear market.
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