adidas (ADS) Q4 2025 earnings summary

Executive summary

• Achieved record revenues of €24.8 billion in 2025, up 13% currency-neutral year-over-year, with double-digit growth in all markets and channels.

• Gross margin improved to 51.6%, and operating profit rose 54% to €2,056 million, with operating margin up 2.6pp to 8.3%.

• Net income from continuing operations increased 67% to €1,377 million, and EPS from continuing operations rose 76% to €7.46.

• Strong performance across all regions, with double-digit growth in North America, Europe, Greater China, Japan/South Korea, Latin America, and Emerging Markets.

• Advanced ESG initiatives, reducing carbon intensity and increasing sustainable materials usage.

Financial highlights

• FY 2025 net sales reached €24.8bn, up 13% currency-neutral year-over-year; Adidas brand up 13% C.N.

• Gross profit rose 6% to €12.8bn, with gross margin improving by 0.8pp to 51.6%.

• Operating profit increased 54% to €2.06bn (8.3% of net sales, +2.6pp).

• Net income from continuing operations grew 67% to €1.38bn; basic EPS up 76% to €7.46.

• Q4 2025 net sales up 11% C.N. to €6.08bn; operating profit up 188% to €164m.

Outlook and guidance

• 2026 guidance: high single-digit growth in local currencies, EBIT of ~€2.3 billion, despite €400 million headwinds from US tariffs and FX.

• Mid-term outlook (2027–2028): high single-digit net sales growth, EBIT margin above 10% by 2027–2028.

• Gross margin expected to remain stable in 2026, with significant FX hedging benefits anticipated in 2027.

• Targeting annual top-line growth of €2 billion through 2028.

• Share buyback authorization up to €1 billion per year, with €1.5 billion to be returned to shareholders in 2026.