adidas AG Just Missed EPS By 16%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that adidas AG (ETR:ADS) released its half-yearly result to the market. The early response was not positive, with shares down 8.2% to €159 in the past week. It was not a great result overall. While revenues of €13b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 16% to hit €2.02 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the most recent consensus for adidas from 27 analysts is for revenues of €27.0b in 2026. If met, it would imply a modest 3.5% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 18% to €9.34. Before this earnings report, the analysts had been forecasting revenues of €26.7b and earnings per share (EPS) of €9.52 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for adidas

There were no changes to revenue or earnings estimates or the price target of €204, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic adidas analyst has a price target of €255 per share, while the most pessimistic values it at €163. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await adidas shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting adidas' growth to accelerate, with the forecast 7.1% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.8% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that adidas is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on adidas. Long-term earnings power is much more important than next year's profits. We have forecasts for adidas going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with adidas .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.