Adidas lifts 2026 profit target to €2.5 billion

The German sportswear manufacturer Adidas has increased its projected operating profits for 2026 to €2.5 billion, up from the previous estimate of €2.3 billion. This revision follows a significant surge in third-quarter performance, driven by the recovery of U.S. customs duties and sustained demand for products sold at full price.

Third-quarter financial results

According to Bloomberg, the company reported on Tuesday that operating income reached €1.008 billion during the third quarter. This figure represents a substantial increase compared to €736 million recorded in the same period last year, marking a 37% growth in quarterly profits.

Impact of tariff refunds

The upward adjustment in guidance stems largely from the return of approximately €200 million in U.S. tariffs, following a judicial ruling regarding previously imposed charges. This refund allowed Adidas to surpass the average analyst consensus of €2.4 billion for annual operating profits.

Despite receiving the full amount back, the corporation plans to reinvest around €100 million of these funds during the fourth quarter. Nevertheless, the firm maintains its annual operating profit outlook at the revised level of €2.5 billion.

Demand and pricing strategy

Beyond the effect of recovered tariffs, the brand benefited from continued consumer interest in apparel and sports equipment. The company achieved strong sales volumes while preserving product prices, avoiding reliance on discounts to stimulate market activity.

This development occurs as Adidas seeks to capitalize on sales momentum and enhance profitability. The third-quarter outcomes exceeded prior-year benchmarks, prompting the management to set an annual target above current market expectations.