Under Armour (UAA) Is Up 13.6% After Raising Profit Outlook Despite Wider Loss Guidance

• Under Armour, Inc. reported past third-quarter 2025 results showing sales of US$1,327.76 million versus US$1,401.04 million a year earlier, and a net loss of US$430.83 million compared with prior net income of US$1.23 million, while also guiding to a full-year revenue decline and deeper operating loss amid tariff and demand pressures.
• Despite weaker revenues and elevated losses, management raised its full-year profit outlook and highlighted early benefits from its operating model overhaul, even as analysts issued mixed views on the company’s ability to manage North American softness, tariff headwinds of about US$100 million, and negative free cash flow expectations.
• With Under Armour now forecasting a wider operating loss and signaling tariff-related margin pressure, we’ll examine how this shifts its margin-recovery investment narrative.

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Under Armour Investment Narrative Recap

To own Under Armour today, you need to believe its brand-first overhaul and margin recovery can outweigh ongoing revenue declines and tariff-driven pressures. The latest quarter underlines that the near term hinges on whether management can stabilize North America and protect margins despite roughly US$100 million in expected tariff headwinds, while the biggest risk is that weaker demand and negative free cash flow persist longer than investors are currently willing to tolerate.

The updated full year guidance on 6 February 2026 is central here. Under Armour now projects a 4% revenue decline and a wider operating loss of about US$154 million, but still raised its profit outlook on an adjusted basis. That mix of softer top line, deeper GAAP loss and improved adjusted earnings focus directly tests the margin recovery catalyst investors have been watching most closely.

Yet for investors, one of the most important things to be aware of is how tariff driven margin pressure could...

Read the full narrative on Under Armour (it's free!)

Under Armour's narrative projects $5.4 billion revenue and $191.0 million earnings by 2028. This requires 1.5% yearly revenue growth and about a $89.5 million earnings increase from $101.5 million today.

Uncover how Under Armour's forecasts yield a $6.51 fair value, a 8% downside to its current price.

Exploring Other Perspectives

The most bearish analysts were already assuming roughly flat revenue near US$5.1 billion and only US$131 million of earnings by 2028, so this latest revenue decline and wider loss guidance may strengthen their concern that brand momentum and digital relevance are not improving fast enough.

Explore 15 other fair value estimates on Under Armour - why the stock might be worth 33% less than the current price!

Build Your Own Under Armour Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Under Armour research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Under Armour research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Under Armour's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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