American Eagle Outfitters 2026 Q3 Earnings Net Income Surges 14.2% to $91.34M

American Eagle Outfitters (AEO) reported fiscal 2026 Q3 earnings on Dec 9, 2025, delivering robust results. The company exceeded expectations with a 5.7% revenue increase to $1.36 billion and a 28.6% rise in EPS to $0.54. The stock’s post-earnings performance, however, lagged behind broader market benchmarks, signaling mixed investor sentiment.

Revenue

AEO’s total revenue grew 5.7% year-over-year to $1.36 billion in Q3 2026. The American Eagle brand drove the majority of this growth, contributing $853.73 million, while the Aerie division added $461.99 million. Other revenue streams, including non-core operations, totaled $54.62 million. Intersegment eliminations reduced the total by $7.64 million, reflecting internal transaction adjustments. The performance highlights AEO’s ability to maintain momentum across its core and sub-brands.

Earnings/Net Income

The company’s profitability strengthened significantly, with EPS rising 28.6% to $0.54 and net income increasing 14.2% to $91.34 million. This marks a continuation of AEO’s earnings growth trajectory, underscoring improved operational efficiency and pricing strategies. The EPS growth of 28.6% and net income increase of 14.2% indicate strong profitability improvement.

Price Action

AEO’s stock surged 44.04% month-to-date through Dec 9, 2025, outpacing its 14.79% weekly gain and 6.74% daily rally. The post-earnings trading dynamics, however, revealed a stark disparity between the company’s performance and broader market returns.

Post-Earnings Price Action Review

The strategy of buying AEO when its earnings beat expectations and selling after 30 days yielded a 13.52% return, significantly trailing the 80.28% benchmark. While the approach demonstrated low risk (Sharpe ratio of 0.12, zero maximum drawdown), its lackluster 2.70% CAGR suggests limited alignment with the stock’s explosive momentum. This disconnect highlights the challenges of capitalizing on AEO’s post-earnings volatility through conventional timing strategies.

Additional News

Vice President Marisa Baldwin filed to sell 61,319 restricted shares of AEO via Form 144 on Dec 8, 2025, through Fidelity Brokerage Services. The transaction, permissible within 90 days of filing, reflects executive liquidity activity. While insider sales often raise scrutiny, this move appears routine and does not signal distress. No other material non-earnings developments were reported within the three-week window from Nov 22 to Dec 9, 2025.