Under Armour, Inc. (UAA) · Nov 6, 2026 · Earnings
Beat — Revenue $1.242B vs ~$1.23B consensus; diluted EPS $0.00 vs ~-$0.01 consensus
Under Armour’s Q2 earnings modestly beat expectations and operating-income guidance rose, but weaker demand and a lower gross-margin outlook keep the turnaround mixed.
Under Armour is in the middle of a cost-cutting and brand-reset turnaround: management is trying to make the product line more focused and premium while shrinking the cost base and protecting profitability amid weak consumer demand. Its fiscal 2027 starting outlook already called for a mid-single-digit revenue decline, with North America and Asia-Pacific the main pressure points.
The quarter cleared a low bar, but not by enough to change the story. Revenue of $1.242 billion was modestly above the roughly $1.23 billion published consensus, while diluted EPS rounded to breakeven versus expectations for a small loss. Operating income also landed well above the prior quarterly outlook, helped by cost control and lower restructuring charges.
| Q2 FY2027 | Q2 FY2026 | Consensus / prior guide | |
|---|---|---|---|
| Net revenue (Financial Statements) | $1,241.7M (-6.9%) | $1,333.4M | ~$1,230M consensus |
| Diluted EPS (Financial Statements) | $0.00 | $(0.04) | ~$(0.01) consensus |
| Gross margin (Financial Statements) | 47.0% (-30 bps) | 47.3% | — |
| Operating income (Financial Statements) | $14.8M | $17.0M | Prior quarterly outlook below actual |
| FY2027 operating income (Outlook) | $99M–$119M | — | $96M–$116M prior guide |
| FY2027 gross-margin expansion (Outlook) | 170–220 bps | — | 220–270 bps prior guide |
The core demand picture remains weak. North America revenue fell 7%, international revenue fell 7% on a reported basis and 9% in constant currency, while DTC declined 8% and e-commerce fell 12%. Footwear was especially soft, down 11%, suggesting the product reset has not yet translated into broad-based demand.
Profitability guidance improved, but the quality of that improvement is mixed. Full-year operating-income guidance rose by $3 million at both ends, but gross-margin expansion was reduced by 50 basis points at both ends because of freight, inventory actions, foreign exchange and Middle East-related supply-chain costs. The higher operating-income range is therefore being supported partly by a roughly $70 million tariff-refund benefit and tighter spending, not by stronger sales momentum.
The restructuring is nearing its end, but execution still has to prove itself after the accounting benefits fade. Under Armour has incurred $280 million of restructuring and transformation costs against an estimated $305 million total, with substantial completion expected by December 31, 2026. That makes the next phase less about announcing efficiency actions and more about showing that the sharper product strategy can stabilize revenue without relying on tariff refunds or further cost reductions.
Bottom line: This was a narrow earnings beat and a small upgrade to operating-income guidance, but the business is still shrinking across most major channels and regions. The event modestly supports the turnaround’s cost-control side without yet demonstrating a demand recovery.
Restructuring substantially complete by December 31, 2026
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