Adidas Raises Profit Forecast, Signals Bigger Dividend Payouts Amid Strong Demand

Adidas AG has revised its 2026 financial forecast upward, projecting adjusted earnings before interest and taxes (EBIT) in the range of €2.8 billion to €3.0 billion, up from the previous estimate of €2.6 billion. This marks a 7.7% to 15.4% increase in expected profitability, underscoring strong operational performance across its global markets. The company also announced plans to raise its dividend per share by 12% compared to 2025, signaling confidence in sustained cash flow generation. The positive outlook follows a 14% year-over-year growth in revenue during the fourth quarter of 2025, driven by continued momentum in its core footwear categories and strong sales in North America and Asia-Pacific. Margins expanded to 19.6% in the quarter, up from 18.3% in the same period the prior year, reflecting disciplined cost management and favorable product mix. The company attributed the improvement in profitability to higher sales of premium models and successful brand revitalization initiatives. The revised guidance and dividend commitment have prompted market reaction, with Adidas shares (ADID.F) gaining 4.2% in early trading, outperforming the broader consumer discretionary sector. Investors are viewing the move as a bullish signal for the apparel and sportswear industry, particularly given the recent uptick in consumer spending on lifestyle and performance products. Competitors such as Nike (NKE) and Crocs (CPRT) are expected to face renewed pressure to match or exceed Adidas’ momentum in profitability and shareholder returns.