Gildan Activewear (GIL) Q3 2026 earnings summary

Executive summary

• Q3 continuing-operations sales were $1,466.6M, up 61.1% YoY, but below ~$1.65B guidance as softer demand, unfavorable mix, lower prices and service constraints weighed on results.

• Adjusted operating margin was 27.0% and adjusted diluted EPS was $1.54, up 54.0% YoY; 2026–2028 objectives were withdrawn, with an updated outlook planned for spring 2027.

Financial highlights

• Q3 continuing-operations net earnings were $253.1M versus $120.2M; adjusted net earnings were $285.1M versus $148.8M.

• Q3 adjusted gross profit was $634.6M and adjusted operating income was $396.2M; adjusted operating income increased $185M YoY.

• Q3 operating cash flow was $632.7M and free cash flow was $605.7M; 9M totals were $700.6M and $622.2M, respectively.

• 9M sales were $4.22B, up 65.9%; adjusted diluted EPS was $3.26 versus $2.55, while GAAP diluted EPS was $1.56 versus $2.27.

Outlook and guidance

• FY2026 continuing-operations guidance: revenue $5.4B–$5.5B, adjusted operating margin ~20%, adjusted diluted EPS $3.70–$3.80, CapEx ~3% of sales and free cash flow $700M–$750M.

• Guidance assumes softer demand into Q4 and includes ~$220M of IEEPA refunds, including ~$202M received in 9M; updated long-term objectives are planned for spring 2027.

• The FY2026 adjusted effective tax rate is expected to be ~16%, reflecting earlier-than-expected integration tax benefits and use of tax attributes.

• Sales guidance reductions reflect ~$300M from end-consumer demand and mix, ~$145M from lower replenishment, ~$75M from availability and service constraints, and ~$30M from pricing.