Under Armour Rallies 20% on Q3 Beat, Then Widens FY26 Loss Outlook
Under Armour posted a 20% stock jump after beating Q3 EPS estimates and raising adjusted FY26 EPS outlook, but later widened its full-year loss guidance as tariffs increased product costs. Investors faced mixed signals as strong quarterly results clashed with mounting US-China duty headwinds.
1. Strong Q3 Beat and Raised Guidance
Under Armour reported an adjusted Q3 EPS that outpaced analyst estimates, fueling a 20% surge in its share price. Management simultaneously raised its FY26 adjusted EPS guidance, highlighting continued margin expansion despite year-over-year revenue contraction.
2. Tariffs Widen FY26 Loss Outlook
Later in the session, the company widened its full-year FY26 loss outlook, attributing the revision to escalating US-China tariffs that boosted cost of goods sold and compressed gross margins. Executives cautioned that duty-related headwinds would continue to pressure profitability into the next fiscal year.