Under Armour Inc C
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.07%.
Did UA Beat Earnings? Q3 2026 Results
Under Armour delivered a sharply better-than-expected fiscal third quarter, posting adjusted diluted EPS of $0.09 against a consensus estimate of negative $0.01, a 704.03% beat, even as total revenue slipped 5.2% year-over-year to $1.33 billion, edging past the $1.31 billion estimate by 1.22%. The headline GAAP results were heavily distorted by a $247.00 million non-cash valuation allowance on U.S. deferred tax assets, a $98.50 million litigation reserve, and $74.98 million in restructuring charges, all of which combined to produce a GAAP net loss of $1.01 per diluted share. Beneath those items, the underlying business showed tentative signs of stabilization; management signaled that North America's 10.3% revenue decline to $756.73 million likely represented the trough of its ongoing reset, with international markets offering partial relief through 3.4% growth. Notable institutional confidence has emerged alongside the results, with a major shareholder recently adding $49.7 million in shares. Looking ahead, Under Armour raised its adjusted diluted EPS guidance to $0.10-$0.11 for fiscal 2026, up from a prior range of $0.03-$0.05.
- North America business reset drove 10.3% revenue decline in that region
- Higher tariffs were the primary driver of 310 basis point gross margin decline
- Pricing headwinds and unfavorable channel and regional mix pressured margins
- Lower marketing spend due to timing shifts reduced adjusted SG&A by 7%
- International revenue grew 3.4%, partially offsetting North America weakness
- Latin America was the fastest growing region at 19.7% revenue growth
- Footwear was the weakest product category with 12% revenue decline
- $247 million valuation allowance on U.S. federal deferred tax assets drove large GAAP net loss
“Our third quarter adjusted operating results exceeded expectations, and despite a few unfortunate, non-recurring impacts, we're encouraged by the progress we're making in the business to reignite brand momentum. In North America, we believe the December quarter marked the most challenging phase of our business reset, and we expect greater stability ahead as we build on this progress globally.”
Under Armour CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026 (year ending March 31, 2026), Under Armour updated its outlook: Revenue is expected to decline approximately 4% (improved from prior 4-5% decline), with North America down ~8% and Asia-Pacific down ~6%, partially offset by ~9% EMEA growth. Gross margin expected to decline ~190 basis points driven by higher U.S. tariffs, unfavorable channel/regional mix, and pricing headwinds. Adjusted SG&A expected to decline at a mid-single-digit rate. GAAP operating loss expected to be approximately $154 million (worsened from prior $56-71M loss due to litigation reserve). Adjusted operating income expected to be approximately $110 million (top of prior $95-110M range). GAAP diluted loss per share expected at $1.24-$1.25. Adjusted diluted EPS raised to $0.10-$0.11 (from prior $0.03-$0.05).
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Figures from SEC filings and company reports. Not investment advice.