Gildan Activewear Q4 EPS Beats Estimates, Cash Flow Up 60%, $80 Price Target
Gildan Activewear posted Q4 non-GAAP EPS of $0.96, beating estimates by $0.01, on revenue of $1.08 billion, up 31.4% year-over-year, while operating cash flow rose 59.8% and free cash flow climbed 46.4%. Stifel and TD Cowen maintained Buy ratings with $80 price targets and Gildan unveiled a 10% dividend hike.
1. Q4 Financial Results
Gildan Activewear reported Q4 non-GAAP EPS of $0.96, beating estimates by $0.01, while revenue reached $1.08 billion, a 31.4% increase year-over-year. Operating cash flow rose 59.8% to strengthen liquidity, and free cash flow climbed 46.4% to support shareholder returns.
2. Analyst Ratings and Price Targets
Stifel Nicolaus reiterated its Buy rating on Gildan with an $80 price target, and TD Cowen raised its target from $77 to $80 following the updated fourth-quarter performance. Both firms cited robust cash flow improvements in their model revisions.
3. Shareholder Returns
During the quarter, Gildan returned $33 million to shareholders through dividends and share repurchases and announced a 10% dividend increase for 2026 to enhance shareholder income and reflect confidence in cash generation.