Academy Sports and Outdoors Q2 2026 Earnings: Revenue Up 3.3%, EPS Down 5.0%

Academy Sports and Outdoors reported Q2 2026 revenue of $1.6bn, up 3.3% YoY, but net income fell 12% to $125.4m. Profit margin dropped to 7.8% from 9.2% in Q2 2025 due to higher expenses. EPS missed analyst estimates by 11% at $1.89. Revenue is forecast to grow 6.2% p.a. over the next three years.

Academy Sports and Outdoors Inc. (NASDAQ: ASO) reported its Q2 2026 earnings on September 2, 2025. The company saw a 3.3% year-over-year increase in total revenue to $1.60 billion, but net income declined by 12% to $125.43 million, missing expectations. The earnings per share (EPS) also fell short, declining by 5% to $1.89, down from $1.99 in the same period last year.

The company's revenue growth was driven by a 3.3% year-over-year increase in total revenue, reaching $1.60 billion. Key categories contributing to this growth included Outdoors, Sports and Recreation, Apparel, and Footwear. However, the company's profit margin dropped to 7.8% from 9.2% in Q2 2025 due to higher expenses.

Academy's CEO, Steve Lawrence, highlighted the company's e-commerce growth, which saw an 18% year-over-year increase, and the opening of three new stores, with plans to open 20–25 additional locations for the year. He acknowledged softer demand in seasonal categories early in the quarter and a slower start among lower-income consumers but expressed optimism about improved traffic among high-income shoppers and ongoing tariff mitigation strategies.

The company updated its full-year comp sales guidance for fiscal 2026 to a range of -3% to +1%, up from the previously issued range of -4%. Academy expects gross margin rates between 34%–34.5% and SG&A deleverage of approximately 100 basis points for the year. Free cash flow for Q2 was reported at $21.7 million, with $530 million remaining in buyback authorization.

Following the earnings announcement, Academy's shares have seen a continued downward trend, with investors reacting to mixed performance indicators. While revenue growth was positive, the decline in earnings and net income has dampened sentiment. The stock's decline over the past week highlights market skepticism, especially in light of the broader economic challenges and the company's own challenges in certain product categories.

Revenue is forecast to grow at a compound annual rate of 6.2% over the next three years. However, the company's earnings and net income performance have been challenging, and the stock has seen a decline in recent trading periods. The average target price for Academy Sports and Outdoors Inc. is $57.06, with a high estimate of $70.00 and a low estimate of $45.00, suggesting an average upside of 6.55% from the current price of $53.55.

References:
[1] https://finance.yahoo.com/news/academy-sports-outdoors-inc-aso-131539215.html
[2] https://www.ainvest.com/news/academy-2026-q2-earnings-misses-targets-net-income-drops-12-2509/