Amer Sports Inc (NYSE:AS) delivered quarterly revenue and earnings that comfortably exceeded Wall Street's expectations, but its shares traded lower in pre-market activity following the release of its first-quarter outlook for 2026.
The company, which owns a portfolio of premium sports and outdoor brands including Arc'teryx, Salomon, and Wilson, reported strong growth for its fourth quarter and full fiscal year 2025. However, investor attention appears focused on the cost of sustaining that growth and near-term guidance that fell short of analyst projections.
Quarterly Performance Versus Estimates
For the fourth quarter ending December 31, 2025, Amer Sports posted robust top-line growth, driven by its core brands.
- Reported Revenue: $2.10 billion.
- Analyst Estimate: $2.06 billion.
- Result vs. Estimate: Beat by approximately 2.1%.
The company's profitability also came in ahead of forecasts.
- Reported Adjusted EPS: $0.31 per diluted share.
- Analyst Estimate: $0.288 per share.
- Result vs. Estimate: Beat by approximately 7.6%.
This performance capped off what CEO James Zheng termed a "breakout year." For the full fiscal year 2025, revenue grew 27% to $6.57 billion, while adjusted net income attributable to shareholders more than doubled, increasing 131% to $545 million.
Market Reaction and the Outlook
Despite the earnings beat, shares of Amer Sports were down approximately 5% in pre-market trading. This negative price action is primarily attributed to the company's guidance for the upcoming first quarter of 2026, which appears to have disappointed investors.
The company provided an outlook for Q1 2026, forecasting adjusted revenue growth of 22-24% and adjusted EPS in the range of $0.28 to $0.30. While this indicates continued strong growth, it sits below the consensus analyst estimates for the quarter.
- Company's Q1 2026 Revenue Guidance (Implied): Approximately $1.87 - $1.90 billion (based on Q1 2025 revenue of $1.53 billion).
- Analyst Sales Estimate for Q1 2026: $1.82 billion.
- Company's Q1 2026 Adjusted EPS Guidance: $0.28 - $0.30.
- Analyst Revenue Estimate for Q1 2026: $0.34 per share.
The discrepancy between the company's EPS guidance and the analyst "revenue" estimate for EPS highlights a potential mismatch in the provided data, but the market's reaction suggests the overall outlook was perceived as tepid. Management commentary pointed to accelerated investment behind the Salomon brand's "large Softgoods opportunity" as a factor, indicating that near-term profits are being partially reinvested for future growth.
For the full year 2026, Amer Sports provided more detailed guidance, including:
- Reported revenue growth of 16-18%.
- Adjusted operating margin of 13.1-13.3%.
- Adjusted EPS of $1.10 - $1.15.
The company's full-year sales growth guidance aligns closely with the analyst sales estimate of $7.72 billion for 2026.
Key Takeaways from the Earnings Report
Beyond the headline numbers, several important themes emerged from the earnings release:
- Brand-Led Growth: The Arc'teryx and Salomon brands were highlighted as primary growth engines. Salomon surpassed $2 billion in annual sales, while Arc'teryx drove significant margin expansion in the Technical Apparel segment.
- Margin Expansion: The company successfully expanded its full-year adjusted gross margin by 230 basis points to 58.0% and its adjusted operating margin by 170 basis points to 12.8%.
- Strong Financial Position: Amer Sports ended the year with a robust balance sheet, featuring $652 million in cash and a net debt position of only $291 million, which management stated provides flexibility for strategic investments.
- Segmental Performance: All three reporting segments—Technical Apparel, Outdoor Performance, and Ball & Racquet Sports—delivered double-digit revenue growth for the full year.
For a detailed breakdown of upcoming earnings estimates and historical performance, you can view more information here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The information presented is based on data provided and should not be the sole basis for any investment decisions.
