American Eagle Outfitters 2026 Q3 Earnings Beats Expectations with 14.2% Net Income Growth

American Eagle Outfitters (AEO) delivered robust Q3 2026 results, exceeding revenue and EPS expectations. The company raised fourth-quarter guidance amid strong holiday demand and strategic initiatives.

Revenue

American Eagle Outfitters reported Q3 revenue of $1.36 billion, a 5.7% increase from $1.29 billion in 2025 Q3. The growth was driven by strong performance across segments: American Eagle generated $853.73 million, Aerie contributed $461.99 million, and other segments added $54.62 million. Intersegment eliminations reduced total revenue by $7.64 million, reflecting streamlined operations.

Earnings/Net Income

Earnings per share (EPS) surged 28.6% to $0.54, with net income rising 14.2% to $91.34 million. The results underscored improved profitability, fueled by higher sales and operational efficiencies.

Post-Earnings Price Action Review

The stock experienced mixed short-term performance, declining 2.21% in the latest trading day but rebounding with a 9.06% weekly gain and a 25.94% monthly surge. This volatility reflects investor optimism about the company’s strategic direction and holiday sales momentum.

CEO Commentary

Jay Schottenstein, Executive Chairman and CEO, highlighted record revenue and Aerie’s 11% comp sales growth, attributing success to advertising investments and operational improvements. He emphasized optimism about long-term growth and holiday season performance, noting the team’s execution of strategic priorities.

Guidance

The company raised fourth-quarter operating income guidance to $155–$160 million, with comp sales growth of 8–9% and revenue growth aligned with this range. Management cited strong holiday demand and digital channel performance as key drivers.

Additional News

AEO announced a $200 million share repurchase program, enhancing shareholder value. The controversial “great jeans” campaign, featuring Sydney Sweeney, boosted web traffic and brand visibility despite mixed reactions. Additionally, the company plans to expand store operations, focusing on high-traffic urban locations.