Under Armour Q3 Beats Estimates, Lifts Full-Year EPS to $0.10–$0.11
Under Armour reported Q3 fiscal 2026 revenue of $1.327 billion, down 5% YoY but above the $1.313 billion estimate, and delivered adjusted EPS of $0.09 versus an expected loss of $0.02. It raised full-year adjusted EPS guidance to $0.10–$0.11 and sales outlook to $4.96 billion, triggering a short squeeze.
1. Third-Quarter Financial Results
Under Armour reported Q3 fiscal 2026 revenue of $1.327 billion, down 5% year-over-year but above the $1.313 billion consensus, and achieved adjusted EPS of $0.09 compared with an expected loss of $0.02. Gross margin contracted 310 basis points to 44.4% due to higher tariffs, pricing pressure and a less favorable channel mix.
2. Full-Year Guidance Raise
The company increased its adjusted EPS outlook to $0.10–$0.11 from $0.03–$0.05 and lifted sales guidance to approximately $4.96 billion, versus prior revenue range of $4.91–$4.96 billion. It still expects a roughly 4% sales decline and a 190-basis-point margin headwind from U.S. tariffs.
3. Segment and Regional Breakdown
North America revenue fell 10% to $757 million, while international sales rose 3% to $577 million—driven by 6% growth in EMEA and 20% growth in Latin America. Wholesale revenue declined 6% to $660 million and DTC revenue dipped 4% to $647 million, with eCommerce down 7%.
4. Short Squeeze and Stock Reaction
With 41.2% of its float sold short (66 million shares), Under Armour shares surged over 10% on the earnings release as short-covering accelerated. The spike highlights the market impact of a large concentrated short position on a modest upside surprise.