Urban Outfitters 2026 Q3 Earnings Record Net Income Surges 13.1%

Urban Outfitters (URBN) delivered a robust performance in fiscal 2026 Q3, surpassing expectations with 12.3% revenue growth and a record net income. The company’s strategic focus on omnichannel expansion and product innovation drove results, supported by strong segment performance. Analysts remain cautiously optimistic amid mixed post-earnings trading dynamics.

Revenue

Urban Outfitters’ total revenue climbed to $1.53 billion in 2026 Q3, a 12.3% increase from $1.36 billion in 2025 Q3. Retail Operations led with $1.30 billion, reflecting 9.6% growth driven by 8.0% comparable sales and 52 new store openings. Subscription Operations added $144.63 million, buoyed by a 48.7% sales surge from Nuuly’s subscriber base expansion. Wholesale Operations contributed $88.27 million, with Free People’s specialty sales rising 8.4%.

Earnings/Net Income

Earnings per share (EPS) rose 16.1% to $1.30, while net income hit $116.44 million, a 13.1% increase from $102.91 million. The 16.1% EPS growth underscores strong operational performance and profitability.

Price Action

URBN’s stock edged up 2.78% on the latest trading day, surged 23.68% month-to-date, but declined 0.20% for the week.

Post-Earnings Price Action Review

The strategy of buying URBN after a earnings beat and holding for 30 days yielded no return, significantly underperforming the benchmark. With a strategy return of 0.00% and an excess return of -86.69%, the approach generated neither profit nor risk mitigation, marked by a 0.00% CAGR and maximum drawdown.

CEO Commentary

Urban Outfitters CEO Richard Hayne highlighted the company’s “disciplined execution across retail, subscription, and wholesale segments,” emphasizing “improved markdowns and occupancy cost leverage.” He reiterated confidence in Nuuly’s growth potential and the 52 new store openings as “key drivers of long-term value creation,” while cautioning about macroeconomic headwinds.

Guidance

The company guided for sustained gross margin expansion and “modest CAPEX growth” in fiscal 2026 Q4, with a focus on inventory optimization and digital commerce.

Additional News

Urban Outfitters released its 10-Q report on Dec 11, 2025, disclosing $1.529 billion in net sales and $116.4 million in net income. Goldman Sachs initiated coverage on URBN with a Neutral rating and $83 price target, while Telsey Advisory Group raised its target to $85. Analysts broadly maintained Overweight/Market Perform ratings, reflecting confidence in the brand’s omnichannel strategy and Nuuly’s scalability.

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A visual comparison of URBN’s 2025 vs. 2026 Q3 revenue breakdown by segment.