Under Armour, Inc. (NYSE:UAA) (NYSE:UA) stock surged Friday after an earnings beat and raised outlook collided with one of the market’s heaviest short positions.
Under Armour reported unaudited third-quarter fiscal 2026 results that exceeded analyst expectations for both revenue and adjusted EPS.
Revenue declined 5% YoY to $1.327 billion, surpassing the $1.313 billion estimate. Diluted loss per share was $1.01, while adjusted diluted EPS came in at 9 cents, beating the expected loss of 2 cents.
Gross margin decreased by 310 basis points to 44.4%, primarily due to higher tariffs, pricing pressures, and an unfavorable channel and regional mix.
Restructuring charges were $75 million. The company reported an operating loss of $150 million, while adjusted operating income was $26 million.
Net loss was $431 million, including a $247 million valuation allowance on U.S. federal deferred tax assets. Adjusted net income was $37 million.
CEO Commentary
“Our third quarter adjusted operating results exceeded expectations, and despite a few unfortunate, non-recurring impacts, we’re encouraged by the progress we’re making in the …