Adidas posts record quarter, raises 2026 profit outlook to 2.5 billion euros

Adidas, the German sportswear company, reported record preliminary results for July to September 2026 and raised its full-year profit outlook, according to figures released on October 21, 2026. Revenue rose 9% to a record 7.25 billion euros and operating profit jumped 37% to 1.01 billion euros, the highest quarterly level in the company's history. A refund of about 200 million euros in US tariffs helped lift its gross margin to 54.3%. Full third-quarter results are due on October 29.

Adidas is one of the world's largest sportswear companies, so its quarterly numbers are read as a signal of how much shoppers are willing to spend on trainers, sportswear and sports-inspired fashion. A record quarter suggests demand for its products held up well in July to September.

Adidas's figures stand out because they combine growth in sales with a big jump in profit. Selling more products at full price, instead of clearing stock through discounts, is the clearest sign that a brand is in demand. The company also benefited from a one-off refund of US tariffs, the import duties charged on goods entering the United States. That refund raised its gross margin, the share of revenue left after the cost of making products, and it will not recur every quarter. Investors will look closely at the full results on October 29 to see how much of the improvement is lasting.

The upgraded forecast is a vote of confidence from the company's management at a time when many consumer businesses are cautious. This week, other fashion groups reported weaker results; Kering, the owner of Gucci, said its third-quarter revenue was flat as Gucci's sales fell. Against that background, a raised outlook from a global sportswear brand is notable. The forecast is given on a currency-neutral basis, which means it strips out the effect of exchange-rate movements, so it shows underlying growth rather than gains or losses from currency swings.

For the fashion industry in India, Adidas's direction matters because global brands' confidence shapes their plans for store openings, marketing and sourcing in large markets. A strong year for a leading sportswear company can feed through to more investment and more competition in the Indian market, where global and home-grown sportswear labels compete for the same young shoppers.

Short-term: Adidas's raised guidance is likely to set expectations for rivals' upcoming results and for its own full report on October 29.

Long-term: If full-price demand holds once the tariff refund is excluded, Adidas could keep gaining ground in global sportswear. If not, the quarter may be seen as boosted by one-off factors.

Who is affected: Adidas shareholders and employees, its suppliers and retail partners, rival sportswear brands, and shoppers who buy its products worldwide, including in India.

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