Amer Sports Inc (NYSE: AS) raised its third quarter 2026 revenue growth guidance to 20-22% from the previous range of 18-20%. The outdoor lifestyle company also updated its long-term financial algorithm ahead of an Investor Day scheduled for tomorrow, September 17, 2026, in Annecy, France.

The updated outlook reflects stronger expected demand and operating performance. Amer Sports now expects adjusted operating margin to be slightly above the high end of the previous guidance range of 13.5-14%. These updates accompany a refreshed long-term financial framework assuming a base year ending December 31, 2026.

Executive Commentary

CEO James Zheng commented, "Our unique portfolio of premium sports & outdoor brands continues to deliver great financial results in a challenging marketplace, led by continued strong growth across all three segments. We are excited to showcase the Salomon brand to the market during our investor day tomorrow."

CFO Andrew Page added, "In addition to another strong third quarter, we also expect great things from our company long-term. Given our confidence in our three key growth engines: Arc’teryx, Salomon Softgoods, and Wilson Tennis 360, we are pleased to reiterate the 5-year financial algorithm for Amer Sports Group, despite our significantly higher revenue and margin base versus a year ago."

Updated Long-Term Financial Algorithm

The company outlined specific annual revenue compound annual growth rate (CAGR) and adjusted operating margin expansion targets for its segments over a five-plus year duration. All metrics, except revenue, reference non-IFRS measures.

The group-level effective tax rate is projected to approach 25%. The Technical Apparel and Outdoor Performance segments both target mid-teens revenue growth, while the Ball & Racquet segment targets mid-to-high single digits.

What the Numbers Show

The divergence in long-term revenue CAGR targets highlights distinct growth trajectories across business units. While Technical Apparel and Outdoor Performance aim for mid-teens growth, the Ball & Racquet segment’s mid-to-high single digit target suggests a more mature or stable phase for that category. Despite lower top-line growth expectations, all segments share identical adjusted operating margin expansion targets of 20-60+ basis points, indicating a uniform focus on profitability enhancement regardless of revenue velocity.

Forward-Looking Statements

Amer Sports noted that it does not provide reconciliation of forward-looking non-IFRS measures to IFRS Accounting Standards due to forecasting difficulties. Actual results may differ materially from these estimates based on market conditions and customer demand.

Amer Sports Inc. (NYSE: AS) delivered robust second-quarter 2026 results, with revenue rising 32% to $1,633 million compared to $1,236.3 million in the prior-year period, surpassing analyst consensus estimates of $1.54 billion. The company reported quarterly earnings of $0.22 per share, which beat the analyst consensus estimate of $0.11 by 100 percent. This represents a 266.67 percent increase over earnings of $0.06 per share from the same period last year. All three business segments and all geographic regions posted strong double-digit growth, while adjusted operating profit jumped 209% to $208.4 million, representing an adjusted operating margin of 12.8%. The company subsequently raised its full-year 2026 guidance across revenue, margin, and earnings per share.

Second Quarter 2026 Financial Highlights

The following table summarises key income statement metrics for the second quarter:

Gross margin expanded 710 basis points to 65.6%, including a benefit of 390 basis points from net tariff refunds. Net income attributable to equity holders increased 489% to $107 million, which includes a benefit of $50.1 million from tariff refunds net of the release of capitalized tariff costs, specific inventory reserves, and estimated reimbursements to vendors. Adjusted net income attributable to equity holders rose 252% to $126.8 million.

Segment Performance

All three segments delivered strong double-digit revenue growth in the quarter:

• Technical Apparel grew 32% (30% on a constant currency basis), led by Arc'teryx, with omni-comp growth of 17%. DTC represented approximately 55% of total group revenue in Q2, marking a record high. Arc'teryx saw exceptional performance in Women's categories and expanded its store footprint, opening net 8 new stores globally. The brand plans to open 30 to 35 stores globally in 2026, including 10 to 12 in Greater China.
• Outdoor Performance grew 37% (35% constant currency), driven by excellent momentum in Salomon Softgoods. DTC in this segment grew 52%, led by new doors and higher productivity. The brand opened 13 net new shops in Greater China, bringing its total to 315, and launched its first North America flagship stores on 5th Avenue and in the Flatiron District of New York City. It also opened seven stores across Japan, Korea, and Australia. In the Americas, Salomon is expanding through Nordstrom, Foot Locker, and JD Sports, planning seven to 10 new stores in 2026.
• Ball & Racquet Sports grew 24% (23% constant currency), led by Wilson Tennis 360. Racket sales grew more than 50% driven by the Blade V10 launch. The segment expanded into 450 Dick's Sporting Goods doors. Wilson added 12 stores during the quarter and plans about 40 new Tennis 360 stores in China this year.

Adjusted operating margin for Technical Apparel increased 470 basis points to 18.8%, including a benefit of 170 basis points from net tariff refunds. Outdoor Performance adjusted operating margin increased 800 basis points to 14.6%, including a benefit of 270 basis points. Ball & Racquet Sports adjusted operating margin increased 1,300 basis points to 17.2%, including a benefit of 970 basis points from net tariff refunds.

Geographic Revenue Breakdown

Balance Sheet and Store Count

Year-over-year inventories increased 19% to $1,897 million, well below the 32% increase in revenue. Net cash was $573 million, and cash and cash equivalents totalled $720 million at quarter end. Operating cash flow for the first half of 2026 reached $339 million, compared to $108 million last year. The company operated 757 owned retail stores as of June 30, 2026, up 39% from 546 stores a year earlier, with Technical Apparel at 305 stores, Outdoor Performance at 355 stores, and Ball & Racquet at 97 stores.

Full-Year and Third-Quarter 2026 Outlook

Amer Sports raised its full-year 2026 guidance, assuming the most recently announced Section 301 tariff rates remain in place for the remainder of 2026. All guidance figures reference adjusted amounts. Management stated there is "nothing structural" preventing the company from delivering higher sales and profitability if demand strengthens.

Segment-level full-year guidance is as follows:

For the third quarter ending September 30, 2026, the company guided for reported revenue growth of 18%–20% (assuming approximately 50 basis points currency benefit), gross margin of approximately 59.0%, operating margin of 13.5%–14.0%, net finance cost of $15–$20 million, effective tax rate of approximately 28%, and fully diluted EPS of $0.31–$0.33. This Q3 EPS range misses the 39-cent consensus estimate at the midpoint, while revenue guidance of $2.072 billion to $2.107 billion beats the $2.065 billion consensus.

Management Commentary

CEO James Zheng commented: "Our global momentum continued through the second quarter with over 30% revenue growth and strong operating margin expansion. All segments, geographies, and channels achieved strong double-digit growth led by another exceptional quarter from Salomon Softgoods, a strong Arc'teryx omni-comp, and a Wilson Tennis 360 acceleration. Given the broad-based momentum across our portfolio, the healthy and growing premium sports and outdoor market, and the world class teams we have in place around the world, I am very confident in the future outlook for Amer Sports."

CFO Andrew Page noted: "We had another great financial performance in the second quarter across the P&L, with strong sales, margins, and EPS. The investments we have been making are paying off in the form of strong momentum across our three largest opportunities: Arc'teryx, Salomon Softgoods, and Wilson Tennis 360. Looking ahead, the strong position of our brands, great execution by our teams, and healthy demand trends in the market, give us the confidence to raise our full year 2026 sales, margin, and EPS guidance."

Analyst Sentiment and Price Targets

Wall Street coverage remains predominantly bullish, with several major institutions raising their price targets in recent months:

Following the earnings announcement, additional analysts revised their forecasts:

• Barclays analyst Adrienne Yih maintained the stock with an Overweight rating and raised the price target from $49 to $50.
• Truist Securities analyst Joseph Civello maintained the stock with a Buy rating and lowered the price target from $50 to $42.

Amer Sports shares rose 0.6% to trade at $33.83 on Wednesday.

What the Numbers Show

Amer Sports' Q2 2026 results came in materially ahead of the consensus revenue estimate of $1.54 billion, with actual revenue of $1,633 million representing a beat of approximately $93 million. The adjusted diluted EPS of $0.22 also surpassed the prior analyst estimate of $0.11. The 730-basis-point expansion in adjusted operating margin — excluding the 390-basis-point tariff refund benefit — still reflects over 300 basis points of underlying margin improvement, indicating that operating leverage is accelerating faster than top-line growth. Direct-to-consumer sales now represent 55% of total revenue, highlighting a significant shift in channel mix. Inventory growth of 19% lagged revenue growth of 32%, suggesting improved inventory management efficiency. The company will host an investor day on September 17, 2026, in Annecy, France.