Outerwear manufacturer Columbia Sportswear (NASDAQ: COLM) reported Q3 2026 results beating Wall Street’s revenue expectations, with revenue up 2% year on year to $962.6 million. Guidance for next quarter’s revenue was better than expected at $1.13 billion at the midpoint, 0.7% above analysts’ consensus estimates. Its GAAP profit of $1.66 per share was 29.9% above analysts’ consensus estimates.

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PORTLAND, Ore.--(BUSINESS WIRE)--Columbia Sportswear Company (NASDAQ: COLM, the “Company”), a global, multi-brand provider of outdoor, active and lifestyle products including apparel, footwear, accessories and equipment, today announced third quarter 2026 financial results for the period ended September 30, 2026.

Revenue growth

Reviewing a company’s long-term revenue performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones sustain growth for years. Over the last five years, Columbia Sportswear grew its revenue at a weak 3.3% compounded annual growth rate, falling short of the consumer discretionary sector benchmark.

Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Columbia Sportswear’s recent performance shows its demand has slowed as its annualized revenue growth of 1.4% over the last two years was below its five-year trend. Decelerating revenue growth in the sector warrants caution, as it could signal changing consumer tastes aided by low switching costs.

Analyzing the company’s constant currency revenue helps clarify its revenue dynamics by excluding currency movements that are outside its control and not indicative of demand. Over the last two years, its constant currency revenue was flat. This was in line with reported revenue growth, indicating that foreign exchange has not had a meaningful impact on revenue.

This quarter, Columbia Sportswear reported modest year-on-year revenue growth of 2% but beat Wall Street’s consensus estimates by 2.6%. Company management is currently guiding for a 5.3% year-on-year increase in revenue next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 3.3% over the next 12 months, according to S&P. Although this projection indicates its newer products and services will drive better revenue growth, it is still below average for the sector.

Operating margin

Columbia Sportswear’s operating margin has risen over the last 12 months and averaged 7.7% over the last two years. The company’s improved efficiency is a positive, but its suboptimal cost structure means profitability remains inadequate for a consumer discretionary business.

In Q3, Columbia Sportswear generated an operating margin of 11.4%, up 4.2 percentage points year on year. This increase was a positive development and shows it was more efficient.

Earnings per share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Columbia Sportswear’s flat EPS over the last five years was below its 3.3% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.

In Q3, Columbia Sportswear reported EPS of $1.66, up from $0.95 in the same quarter last year. EPS came in well above analysts’ consensus estimates, a positive result for shareholders. Over the next 12 months, Wall Street expects Columbia Sportswear’s full-year EPS to shrink by 8.1% from $4.56 to $4.20, according to S&P.

Key takeaways from Columbia Sportswear’s Q3 results

Columbia Sportswear’s revenue and EPS topped analysts’ consensus estimates, but its EPS guidance for next quarter fell short. The quarter still had some key positives, and shares edged higher 1.9% to $64.92 immediately after the results.

When deciding whether to buy the stock, it’s important to consider its valuation, business quality and what happened in the latest quarter. We cover that in our full research report, which you can read here (it’s free).