Five Below 2026 Q3 Earnings Net Income Surges 2063.9%

Five Below (FIVE) reported fiscal 2026 Q3 earnings on Dec 4, 2025, delivering a 23.1% revenue increase to $1.04 billion and a 2100% EPS jump to $0.66. The company raised full-year guidance, reflecting strong demand and operational discipline.

Revenue

The total revenue of Five Below surged 23.1% to $1.04 billion in 2026 Q3, driven by robust performance across all segments. Leisure led with $446.68 million, while Fashion and Home contributed $332.50 million. Snack and Seasonal added $259.11 million, underscoring broad-based growth.

Earnings/Net Income

Five Below’s EPS skyrocketed 2100% to $0.66, with net income soaring to $36.51 million, a 2063.9% increase. The EPS and net income surges indicate strong profitability growth, driven by effective expense management and sales expansion.

Price Action

The stock price climbed 4.45% in the latest trading day, with a 6.30% month-to-date gain.

Post-Earnings Price Action Review

The strategy of buying the top five stocks by revenue growth upon a revenue beat and selling after 30 days resulted in a 170.99% return, outperforming the benchmark by 32.76%. With a CAGR of 18.39%, maximum drawdown of 0.00%, Sharpe ratio of 0.79, and volatility of 23.30%, the strategy demonstrated strong risk-adjusted returns.

CEO Commentary

Winifred Park highlighted $1.04 billion in sales, 23% growth, and disciplined expense management. Strategic priorities include targeting Gen Alpha/Gen Z, digital-to-in-store integration, and holiday “curtain-up” moments. Leadership expressed confidence in long-term sustainability.

Guidance

CFO Daniel Sullivan outlined Q4 2025 revenue guidance of $1.58–$1.61 billion (14.7% growth) and adjusted EPS of $3.45. Challenges include tariffs and incentive costs, but inventory growth will moderate.

Additional News

UBS raised its price target to $210 from $204, citing Five Below’s 14.3% comp sales growth and strong holiday start. Analysts noted unmitigated tariffs as a risk but remain optimistic about 2026 momentum. Insider trading saw 10 sales totaling ~$3.3 million, while hedge funds like Jennison Associates added 397.5% more shares. Congressional trading included $30,000 purchases by Rep. Lisa McClain.

Guidance

Daniel Sullivan, CFO, outlined Q4 2025 guidance: revenue of $1.58–$1.61 billion (14.7% growth), 6–8% comp sales, and adjusted EPS of $3.45 (midpoint $5.80 for full-year 2025). Adjusted operating margin is expected at 15.8% (Q4) and 8.9% (full-year), with 15.8% tax rate. CAPEX of $200 million supports 150 net new stores. Challenges include unmitigated tariffs and higher incentive costs, while inventory growth will moderate. Net interest income is projected at $5 million (Q4) and $22 million (full-year).