Adidas reports record 2025 revenues and launches €1bn share buyback

The buyback program worth up to €1 billion will start in early February 2026, the company announced alongside preliminary financial results showing record revenues for 2025.

The Herzogenaurach-based sportswear brand reported full-year revenues of €24.811 billion, a new company record despite negative currency effects exceeding €1 billion. On a currency-neutral basis, the adidas brand grew 13 percent for the second consecutive year, driven by double-digit growth across all markets and sales channels.

Adidas operating profit more than doubles

The company’s gross margin improved 0.8 percentage points to 51.6 percent in 2025, despite unfavourable currency developments and higher tariffs. Operating profit more than doubled to €2.056 billion – up €700 million year-over-year. The operating margin expanded 2.6 percentage points to 8.3 per cent, up from 5.6 per cent in 2024.

Fourth-quarter results showed similar momentum. The adidas brand posted 11 per cent currency-neutral revenue growth. Euro-denominated revenues for the quarter totaled €6.076 billion, up from €5.965 billion in 2024. The gross margin improved one full percentage point to 50.8 per cent, whilst operating profit more than doubled to €164 million from €57 million.

“Global brand with a local mindset”

CEO Bjørn Gulden highlighted that markets successfully balanced inventory levels, maintained full-price sell-through and kept discounting under control. The 51.6 percent gross margin – excluding Yeezy – represents a historically high level, underscoring both execution quality and brand strength.

Gulden described the company’s strategic approach as “a global brand with a local mindset”, focusing on proximity to markets and meeting the needs of consumers, athletes and retail partners across sport, comfort, lifestyle and fashion.

Confidence in further revenue and profit growth

The decision to initiate a share buyback reflects management’s confidence in future revenue and profit growth, as well as strong cash flow generation. The program will be financed by expected 2026 cash flow, with all repurchased shares set to be canceled.

The brand’s calendar features major sporting events in 2026, including the Winter Olympics and Paralympics in Italy starting next week, followed by the FIFA World Cup this summer. Gulden closed his remarks with confidence in the power of sport: “Sport and global sporting events bring people from all over the world together. We need that now.”