Adidas Caps Strong 2025 with Record Revenue, Announces €1 Billion Share Buyback
Adidas has delivered a powerful finish to 2025, posting record annual revenues and announcing plans to return up to €1 billion to shareholders through a new buyback program set to commence in February 2026. The preliminary results signal a sustained recovery and strategic momentum for the Herzogenaurach-based group.
Preliminary fourth-quarter figures revealed an 11% increase in currency-neutral revenues for the core Adidas brand. In reported terms, Q4 sales reached €6.07 billion, up from €5.96 billion a year earlier. Notably, the company's operational health showed marked improvement: the gross margin expanded by one percentage point to 50.8%, while operating profit more than doubled to €164 million from €57 million in the same period last year.
For the full year, the story of growth continued. Preliminary unaudited results indicate currency-neutral revenues for the Adidas brand climbed 13% for a second consecutive year, fueled by double-digit growth across all regions and sales channels. Reported revenues hit €24.81 billion, a significant increase from €23.68 billion in 2024, achieved despite absorbing a negative currency impact of over €1 billion. The full-year gross margin strengthened to 51.6%, and operating profit surged by more than €700 million to €2.05 billion.
The company's supervisory board has greenlit the substantial share repurchase plan, citing the brand's strong market performance, a solid balance sheet, and robust cash generation. Adidas plans to fund the buyback through operational cash flow and intends to cancel the repurchased shares, a move typically viewed as a confident signal to the market about future prospects and a commitment to enhancing shareholder value.
"Our confidence in Adidas's future top- and bottom-line growth and cash flow generation is the foundation for this decision," stated CEO Bjørn Gulden. "We will come back with our detailed numbers for 2025, our financial guidance for 2026, and our future capital allocation plans at the beginning of March."
The results also provide a clearer picture of the company's post-Yeezy trajectory. When including the prior year's Yeezy sales (€50m in Q4 and €650m for the full year), the underlying growth rates for the Adidas brand remain impressively strong at 10% for both periods, demonstrating that the brand's momentum is now driven by its core product lines and strategic initiatives.
Market Voices
Michael Chen, Portfolio Manager at Rhine Capital: "This isn't just a beat on expectations; it's a statement of operational turnaround. The margin expansion and profit growth are what the market has been waiting for. The buyback is a logical step given their cash flow strength and shows management's belief that the stock is undervalued."
Sarah Jensen, Retail Analyst at Berliner Finanzberatung: "The regional growth is particularly encouraging—it's not a one-market story. However, I'm keen to see the March guidance. The macro environment, currency volatility, and consumer spending shifts in 2026 are the real tests ahead."
Leo Fischer, Independent Consumer Market Commentator: "A billion for buybacks while they're still navigating a post-Yeezy world and cost-of-living crises globally? It feels like prioritizing shareholders over sustained reinvestment. Let's see if this 'confidence' translates into innovation and fair labor practices, not just stock price pumps."
Priya Mehta, Sports Industry Consultant: "The numbers validate Gulden's product-led recovery strategy. Football, running, and terrace styles are resonating. The buyback should stabilize the equity base, but the real victory is the brand's reconnection with consumers on its own terms."
This analysis is based on preliminary results released by Adidas. Full audited financials and detailed 2026 guidance are expected in March 2026.