Executive Summary

Q2 FY26 delivered modest top-line and margin beats vs S&P Global consensus, with revenue $1.33B (+2% vs consensus*) and adjusted EPS $0.04 (vs $0.024*), aided by better gross margin and higher adjusted operating income .
Mix remained challenging: North America (-8% YoY) and Asia-Pacific (-14% YoY) weighed on growth, offset by double-digit EMEA (+12% YoY); footwear (-16% YoY) underperformed while apparel was resilient (-1% YoY) .
Gross margin contracted 250 bps YoY to 47.3% on tariffs and channel/region mix, partly offset by FX and pricing; SG&A rose on marketing timing and lack of last year’s insurance recovery benefit .
FY26 guidance reiterates a reset year: revenue down 4–5%, gross margin down 190–210 bps, adj. operating income $90–$105M, adj. EPS $0.03–$0.05; CFO transition announced with Reza Taleghani joining Feb 2026, a governance catalyst for execution .

What Went Well and What Went Wrong

What Went Well
- Revenue and margin beats vs consensus*: $1.33B vs $1.31B*; GM 47.3% vs 46.3%; adjusted EPS $0.04 vs $0.024 .
- International and EMEA strength: International +2% YoY (cc -1%), EMEA +12% YoY (cc +7%) provided diversification against North America softness .
- Management execution tone: “Delivered results ahead of our prior outlook…stronger product, sharper storytelling, and a renewed belief in the Under Armour brand,” CEO Kevin Plank .
What Went Wrong
- North America and Asia-Pacific softness persisted: NA -8% YoY; APAC -14% YoY; footwear down 16% YoY, signaling continued demand/mix pressure .
- Gross margin compression (-250 bps YoY) on tariffs and less favorable mix offset prior quarter’s margin strength; SG&A +12% (adjusted +9%) on marketing timing and absence of insurance recovery .
- GAAP loss and low operating leverage: GAAP operating income $17M, GAAP diluted EPS -$0.04 despite higher revenue vs Q1, reflecting restructuring and transformation expenses .

Financial Results

Overall P&L and margins (oldest → newest)

Metric	Q4 FY25	Q1 FY26	Q2 FY26
Revenue ($)	$1,180,583,000	$1,134,068,000	$1,333,380,000
GAAP Diluted EPS ($)	($0.16)	($0.01)	($0.04)
Adjusted Diluted EPS ($)	($0.08)	$0.02	$0.04
Gross Margin (%)	46.7%	48.2%	47.3%
GAAP Operating Income ($)	($72,077,000)	$3,323,000	$17,046,000
Adjusted Operating Income ($)	($35,608,000)	$24,410,000	$53,397,000
SG&A ($)	$607,133,000	$530,345,000	$581,632,000
Adjusted SG&A ($)	$586,390,000	$522,086,000	$577,187,000

Q2 FY26 actuals vs guidance and consensus*

Metric	Q2 FY26 Actual	Q2 FY26 Guidance (issued Aug 8, 2025)	Consensus*
Revenue ($)	$1,333,380,000	Decline 6–7% YoY	$1,306,535,010*
Adjusted Operating Income ($)	$53,397,000	$30–$40M	$34,206,750* (EBIT)
Gross Margin (%)	47.3%	Down 340–360 bps YoY	46.30%*
Adjusted EPS ($)	$0.04	$0.01–$0.02	$0.024*

Segment revenue (Q2 YoY)

Segment	Q2 FY26 ($)	Q2 FY25 ($)	YoY
North America	$791,502,000	$863,345,000	(8.3)%
EMEA	$317,679,000	$283,178,000	12.2%
Asia-Pacific	$179,175,000	$207,661,000	(13.7)%
Latin America	$53,814,000	$46,941,000	14.6%
Corporate Other	($8,790,000)	($2,102,000)	NM

Channel and product (Q2 YoY)

Category	Q2 FY26 ($)	Q2 FY25 ($)	YoY
Wholesale	$775,050,000	$825,993,000	(6.2)%
Direct-to-Consumer	$538,136,000	$550,336,000	(2.2)%
Apparel	$936,483,000	$947,188,000	(1.1)%
Footwear	$263,626,000	$312,760,000	(15.7)%
Accessories	$113,077,000	$116,381,000	(2.8)%

KPIs

KPI	Q2 FY26	Q1 FY26	Q2 FY25
Inventory	$1.04B (down 6% YoY)	$1.14B	$1.10B (approx., prior-year comp stated)
Cash & Equivalents	$396M	$911M	$?
Revolver Borrowings	$200M outstanding	$0	$?
eCommerce Mix of DTC	28% (down; eCommerce -8% YoY)	31% (eCommerce -12% YoY)	—
Share Repurchase	$25M in Q2; 5.2M shares; cumulative $115M/18M shares since May 2024	—	—
Operating Cash Flow (YTD)	($21)M (six months)	$49M (three months)	—

Note: “?” indicates not disclosed in current documents for that exact prior period.

Guidance Changes

FY26 guidance (introduced/updated in Q2)

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY26	N/A	Down 4–5% YoY	Introduced
Gross Margin (bps)	FY26	N/A	Down 190–210 bps	Introduced
SG&A (GAAP)	FY26	N/A	Down mid-teens %	Introduced
SG&A (Adjusted)	FY26	N/A	Down mid-single-digit %	Introduced
Operating Income (GAAP)	FY26	N/A	$19–$34M	Introduced
Operating Income (Adjusted)	FY26	N/A	$90–$105M	Introduced
Diluted EPS (GAAP)	FY26	N/A	($0.17)–($0.15)	Introduced
Adjusted Diluted EPS	FY26	N/A	$0.03–$0.05	Introduced

Previously issued quarterly guidance (from Q1 FY26 for Q2 FY26) vs actual

Metric	Q2 FY26 Guidance (Aug 8)	Q2 FY26 Actual	Result
Revenue YoY	Down 6–7%	(4.7)%	Above guide (better)
Gross Margin YoY (bps)	Down 340–360 bps	Down 250 bps	Better
Adjusted OI ($)	$30–$40M	$53.4M	Above
Adjusted EPS ($)	$0.01–$0.02	$0.04	Above

Earnings Call Themes & Trends

Transcript not available via our sources; themes drawn from company press releases across quarters.

Topic	Previous Mentions (Q4 FY25 and Q1 FY26)	Current Period (Q2 FY26)	Trend
Supply chain, tariffs, mix	Q4: GM +170 bps on lower product/freight costs, less DTC discounting; mix partially offset . Q1: GM +70 bps, offset by unfavorable channel mix and higher supply chain costs .	GM -250 bps on higher U.S. tariffs and unfavorable channel/region mix; FX and pricing partially offset .	Deteriorating vs Q1 due to tariffs/mix headwinds
Regional performance	Q4: NA -11%, APAC -27%; EMEA -2% . Q1: NA -6%, APAC -10%, EMEA +10% .	NA -8%, APAC -14%, EMEA +12%, LatAm +15% .	EMEA resilient; NA/APAC weak
Product performance	Q4: Apparel -11%, Footwear -17% . Q1: Apparel -1%, Footwear -14% .	Apparel -1%, Footwear -16% .	Apparel stabilizing; footwear still pressured
Marketing/SG&A	Q1: Adj. SG&A -6%; GAAP -37% due to prior-year legal reserve .	SG&A +12% (adj. +9%) on marketing timing and lack of insurance recovery .	Higher spend timing in 2H
Legal/regulatory	FY25 had significant litigation settlement expense/reserve .	Prior-year Q2 had $27M insurance recovery; absence added ~5 pts to SG&A growth .	Lapping unusual items
AI/technology	Not highlighted in UA releases.	External partner release lists Under Armour among First Insight customers for AI planning copilot “Ellis” .	Possible external tool usage; not a core narrative in UA docs

Management Commentary

“We delivered results ahead of our prior outlook this quarter and are encouraged to see signs of brand momentum in North America – an important milestone in our turnaround…driven by stronger product, sharper storytelling, and a renewed belief in the Under Armour brand.” – Kevin Plank, President & CEO .
FY26 outlook underscores a reset: revenue down 4–5%, GM down 190–210 bps, adjusted operating income $90–$105M, adjusted EPS $0.03–$0.05 .
Leadership update: Reza Taleghani named CFO effective Feb 2026; Kevin Plank praised outgoing CFO David Bergman’s financial discipline and positioned the transition as key to UA’s next chapter .

Q&A Highlights

The Q2 FY26 earnings call transcript was not available via our document tools; we will update Q&A themes upon transcript availability .
Press release clarifications indicate: gross margin pressure primarily from tariffs and mix, with FX/pricing benefits; SG&A increase tied to marketing timing and absence of prior-year insurance recovery .

Estimates Context

Revenue beat: $1.333B vs $1.307B consensus*; Adjusted EPS beat: $0.04 vs $0.024*; Gross margin beat: 47.3% vs 46.3%; EBIT/Adj. OI outperformed consensus .
FY26 consensus* EPS $0.047 and revenue ~$4.94B imply the Street models a narrow profit on an adjusted basis and expects modest top-line contraction; UA’s FY26 guidance for adj. EPS $0.03–$0.05 and revenue down 4–5% is broadly consistent to slightly conservative on margins .
Potential estimate revisions: Upward for Q3/Q4 margins if tariff/mix headwinds ease faster; footwear trajectory likely keeps top-line estimates cautious near-term .

Consensus values marked with * are Values retrieved from S&P Global.

Key Takeaways for Investors

UA executed above prior outlook and consensus* on revenue, gross margin, adjusted operating income and adjusted EPS, signaling early traction in the turnaround despite ongoing category and regional headwinds .
Mix remains the swing factor: EMEA strength offsets NA and APAC pressure; footwear continues to lag apparel, constraining overall growth and leverage .
Tariffs and channel/region mix are the primary gross margin headwinds; management cites FX and pricing as partial offsets, suggesting levers to stabilize margin into 2H .
FY26 is a reset year with disciplined opex and a narrowed profitability range (adj. OI $90–$105M, adj. EPS $0.03–$0.05) that appears achievable after Q2 beats .
Governance/execution catalyst: Incoming CFO Reza Taleghani (Feb 2026) adds experienced financial leadership; monitor early signals on working capital, SG&A efficiency, and pricing/mix strategy .
Near-term trading setup: Positive skew from Q2 beats vs conservative FY26 framing; watch for updates on tariffs, footwear pipeline, and North America demand into holiday.
Medium-term thesis: Brand rebuilding and product innovation aim to lift ASPs and mix; sustained EMEA momentum and improved DTC quality mix are critical to re-expand margins .

Additional Notes on Sources

8-K 2.02 press release and exhibits for Q2 FY26, including full financial statements and FY26 outlook .
Q1 FY26 8-K for sequential and guidance comparisons .
Q4 FY25 8-K for prior-period trend context .
CFO transition press release (Ex. 99.2) included with Q2 8-K .
Earnings call transcript not available via document tools; company noted call timing in release .
External PR referencing Under Armour’s use of First Insight’s AI planning tools .

Under Armour, Inc. (UAA)·Q2 2026 Earnings Summary