Academy ASO 2026Q1 Earnings Preview Potential Downside Amid Analyst Downgrades and Revenue Estimates

Forward-Looking Analysis
Academy Sports is set to report its 2026Q1 earnings on June 10th, 2025. Analysts expect an EPS of $0.89, a decrease from the previous quarter's $1.96. Revenue is projected at $1.37 billion, reflecting a slight decline from the $1.68 billion reported in Q4 2025. Despite consistently beating EPS expectations in recent quarters, Academy Sports faces a challenging environment with expected lower earnings. Analysts forecast a decrease in annual earnings from $418.45 million in 2025 to $379.92 million in 2026. This aligns with recent downgrades and price targets ranging from $43 to $70, with an average target of $57.67. Investors will closely watch whether Academy can maintain its trend of surpassing EPS estimates, while managing revenue pressures amid shifting consumer trends and market dynamics.

Historical Performance Review
In the 2025Q4 earnings, Academy Sports reported revenue of $1.68 billion, a 6.6% year-over-year decline. Net income reached $133.63 million, resulting in an EPS of $1.96, surpassing the consensus estimate by $0.14. Gross profit stood at $540.23 million. Despite the revenue drop, Academy Sports demonstrated strong profitability, showcasing its ability to manage costs effectively and deliver a positive earnings surprise.

Additional News
Recent reports show Academy Sports and Outdoors has been navigating a period of forecast adjustments. Analysts have projected a decrease in earnings for 2026, with a reduced EPS estimate for the upcoming quarter. The company has experienced fluctuations in stock price targets, with analysts setting ranges between $43 and $70, and an average target of $57.67. Despite these challenges, Academy Sports continues to report robust earnings and has consistently surpassed EPS estimates in prior quarters. It remains focused on maintaining its market position and adapting to changing consumer demands, as evidenced by recent strategic initiatives and guidance updates.

Summary & Outlook
Academy Sports exhibits strong financial health, reflected in its ability to consistently beat EPS estimates despite revenue pressures. Growth catalysts include strategic initiatives and market adaptation, yet the risks remain due to forecast downgrades and revenue challenges. The company's future prospects appear neutral, as analysts predict a decline in earnings, yet it maintains resilience in profitability. Investors should monitor upcoming earnings for insights on Academy's ability to navigate the evolving retail landscape and sustain its financial performance.