Q3 26 EPS
$1.71
MISS 20.90%
Est. $2.16
Q3 26 Revenue
$883.8M
BEAT +0.02%
Est. $883.7M
vs S&P Since Q3 26
-11.6%
TRAILING MARKET
RH -4.1% vs S&P +7.6%
Market Reaction
Did RH Beat Earnings? Q3 2026 Results
RH delivered a mixed third quarter for fiscal 2025, with revenue nearly in line with expectations but earnings falling well short as tariff headwinds and international expansion costs weighed on profitability. The luxury home furnishings retailer pos… Read more RH delivered a mixed third quarter for fiscal 2025, with revenue nearly in line with expectations but earnings falling well short as tariff headwinds and international expansion costs weighed on profitability. The luxury home furnishings retailer posted adjusted diluted EPS of $1.71, missing the $2.16 consensus by 20.90%, while revenue of $883.81 million edged just 0.02% above estimates and grew 8.9% year-over-year. The primary culprit was higher-than-expected tariff expenses on prior-period special order and backorder deliveries, which, combined with elevated costs tied to the new Paris gallery opening, pushed adjusted operating margin to 11.6%, below the company's own 12.5% guidance midpoint. GAAP net income rose 9% to $36.27 million, and free cash flow reached $83.03 million in the quarter. With analysts noting RH is well positioned for an eventual housing market rebound, management guided Q4 revenue growth of 7% to 8% and adjusted operating margin of 12.5% to 13.5%, while full-year fiscal 2025 targets call for revenue growth of 9.0% to 9.2% and free cash flow of $250 million to $300 million.
Key Takeaways
- • Revenue increased 9% year-over-year and 18% on a two-year basis
- • Significant market share gains ranging from 12 to 28 points on a two-year basis versus competitors
- • Free cash flow of $83 million in Q3, year-to-date $198 million
- • Inventory down 11% year-over-year and $82 million versus Q2
- • Net debt reduced by $85 million from Q2
RH YoY Financials
Q3 2026 vs Q3 2025, source: SEC Filings
“We continued to generate industry leading growth with revenue increasing 9% in the third quarter, and up 18% on a two-year basis demonstrating the disruptive nature of our brand despite the worst housing market in almost 50 years, and the polarizing impact of tariffs.”
— Gary Friedman, Q3 2026 Earnings Press Release
RH Earnings Trends
RH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
RH EPS Trend
Earnings per share: estimate vs actual
RH Revenue Trend
Quarterly revenue: estimate vs actual
RH Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 27 | — | $-1.97 | — | $800.3M | — |
| Q4 26 MISS FY | $2.20 | $1.53 | -30.58% | $842.6M | -3.51% |
| FY Full Year | — | $6.29 | — | $3.44B | — |
| Q3 26 MISS | $2.16 | $1.71 | -20.90% | $883.8M | +0.02% |
| Q2 26 MISS | $3.22 | $2.93 | -8.91% | $899.2M | -0.69% |
| Q1 26 BEAT | $-0.07 | $0.13 | +290.62% | $814.0M | -0.56% |
| Q4 25 MISS FY | $1.91 | $1.58 | -17.17% | $812.4M | -2.06% |
| FY Full Year | — | $5.39 | — | $3.18B | — |