Amer Sports Q2 2026 earnings: Revenue rises 32% and operating margin expands

Amer Sports (NYSE: AS) reported Q2 2026 revenue of $1.633 billion, up 32.1% from $1.236 billion, while diluted EPS rose to $0.18 from $0.03. IFRS operating margin reached 11.7% and adjusted operating margin reached 12.8%, although net tariff refunds contributed 390 basis points to both measures and added $50.1 million to net income. All three segments and every reported region delivered double-digit revenue growth, prompting the company to raise its full-year adjusted guidance.

Core financial results

Reported revenue grew 30% on a constant-currency basis, indicating that most of the quarter’s 32.1% reported increase came from business growth rather than exchange rates. Gross profit increased faster than revenue, while reported operating profit more than quadrupled as the higher gross margin outweighed a 30% increase in selling, general and administrative expenses.

Adjusted operating profit rose 209% to $208 million. Adjusted net income attributable to equity holders increased 252% to $127 million, equivalent to adjusted diluted EPS of $0.22.

Amer Sports reports under IFRS Accounting Standards. Adjusted figures are non-IFRS measures that exclude specified acquisition-related, restructuring, transaction, legal, share-based payment, and other items.

Business and segment performance

Outdoor Performance recorded the fastest segment growth, supported by momentum in Salomon Softgoods. Technical Apparel remained the largest segment and benefited from broad-based Arc’teryx growth, including a 17% constant-currency omni-comp increase. Ball & Racquet Sports grew 24%, led by Wilson Tennis 360.

Growth was also geographically broad. Asia Pacific revenue rose 60.3% to $247.6 million, Greater China increased 35.5% to $556.0 million, the Americas grew 25.6% to $496.7 million, and EMEA advanced 20.3% to $332.3 million.

Profitability and balance sheet

Reported SG&A expenses increased 30% to $909.2 million, slightly slower than revenue, while adjusted SG&A rose 33% to $897 million. Management said it plans to continue reinvesting in Arc’teryx, Salomon Softgoods, and Wilson Tennis 360, which it considers early-stage growth opportunities.

Quarter-end cash and cash equivalents totaled $720.4 million, up from $652.3 million at December 31, 2025. Net cash was $573 million, non-current borrowings were zero, and other borrowings stood at $147.4 million.

Inventory reached $1.897 billion, up 19% year over year and $274.6 million from the end of 2025. The increase remained below the quarter’s revenue growth rate, but inventory management is still relevant as Amer Sports invests to sustain expansion across brands and channels.

Tariff refunds amplified—but did not create—the margin expansion

Net tariff refunds accounted for 390 basis points of the 710-basis-point increase in reported gross margin and the 820-basis-point increase in reported operating margin. They also contributed $50.1 million to net income after the release of capitalized tariff costs, inventory reserves, and estimated vendor reimbursements.

The refund therefore had a material effect on reported profitability, but underlying margins also improved. Amer Sports said group operating margin expanded by more than 300 basis points when the refund benefit was excluded.

The impact varied by segment. Tariff refunds contributed 170 basis points to Technical Apparel’s 470-basis-point adjusted margin increase and 270 basis points to Outdoor Performance’s 800-basis-point improvement. Ball & Racquet Sports was the most affected: refunds accounted for 970 basis points of its 1,300-basis-point margin expansion.

Guidance

Amer Sports raised its full-year 2026 adjusted sales, gross margin, operating margin, and EPS guidance. The release did not provide the previous ranges, so the size of the increases cannot be quantified. The outlook assumes that the most recently announced Section 301 tariff rates remain in place for the rest of 2026.

For Q3 2026, the company expects reported growth to moderate from the second quarter while maintaining a double-digit adjusted operating margin.

Recent insider transactions

The supplied insider data show 942,231 shares acquired through 17 transactions and 860,705 shares sold through 10 transactions over the past six months, resulting in net purchases of 81,526 shares. Several of the most recent sales occurred on the same day as option exercises, so the transaction pairs provide important context.

The records establish the direction and value of the transactions but do not, by themselves, indicate the insiders’ views on Amer Sports’ prospects.

Risks investors should watch

• Tariff-related volatility: Refunds made a material contribution to Q2 margins and net income. Future results may not receive the same benefit, while the guidance assumes current Section 301 tariff rates remain in place.
• Slower Q3 growth: The Q3 revenue growth outlook of 18%–20% is below Q2’s 32.1% increase, making continued demand and execution across the three growth engines important to the full-year target.
• Reinvestment could limit operating leverage: Amer Sports intends to keep investing behind Arc’teryx, Salomon Softgoods, and Wilson Tennis 360. Adjusted SG&A already grew slightly faster than Q2 revenue.
• Inventory execution: Inventory rose to nearly $1.9 billion. Demand forecasting and sell-through will matter as the company expands its brands, retail network, and e-commerce operations.
• Currency contribution: Full-year reported revenue guidance includes an assumed 200–250-basis-point currency benefit, meaning changes in exchange rates could affect reported growth.

Summary

Amer Sports’ Q2 2026 performance combined broad-based sales growth with substantial operating margin expansion. Arc’teryx, Salomon Softgoods, and Wilson Tennis 360 drove growth across the portfolio, while tariff refunds amplified an underlying improvement in profitability. The next points to monitor are the expected moderation in Q3 revenue growth, the durability of margin gains without the same refund benefit, inventory execution, and progress toward the raised full-year guidance.