Under Armour, Inc. (NYSE: UA, UAA) delivered a fourth quarter that looked more stable than strong. Q4 FY2026 revenue was about $1.2 billion, down just 1% year over year, while direct-to-consumer revenue rose 5% and SG&A fell sharply. On the surface, those numbers suggest management is making progress on cost control and channel mix.
But investors did not get a clean turnaround signal. Gross margin in Q4 FY2026 fell 470 basis points to 42.0%, the company still posted a GAAP operating loss of $34 million and a net loss of $43 million, and the initial FY2027 outlook called for revenue to decline slightly year over year. That is why the quarter mattered less than the guidance. Under Armour showed signs of stabilization, but management still is not ready to forecast a return to growth.
What Under Armour reported in Q4 FY2026
Under Armour’s Q4 FY2026 results showed a business that is no longer deteriorating as quickly, but also not yet recovering cleanly. Revenue of about $1.2 billion was down 1% year over year, or down 4% on a constant-currency basis. Wholesale revenue fell 3% to $748 million, while direct-to-consumer revenue rose 5% to $406 million.
By product category, apparel revenue was flat at $778 million, footwear revenue was flat at $282 million, and accessories revenue increased 2% to $94 million. Those figures point to a company that is finding some stability in demand, but not broad acceleration.
The pressure point remained profitability. Gross margin fell to 42.0% from the prior year, while adjusted gross margin was 43.1%, down 360 basis points. SG&A improved meaningfully, dropping 15% to $518 million, and adjusted SG&A declined 14% to $503 million. Even so, the company still reported a GAAP operating loss of $34 million, adjusted operating income of just $3 million, a GAAP net loss of $43 million, and an adjusted net loss of $11 million.
What the channel and regional mix says
The most useful part of the quarter may be how the sales mix shifted. North America revenue fell 7% to $641 million, showing that Under Armour’s largest market is still the weak link in the turnaround. International revenue rose 10% reported, or 3% in constant currency, to $539 million, which suggests the brand remains in better shape outside its home market.
The channel mix told a similar story. Direct-to-consumer growth was a positive sign because it gives Under Armour better control over presentation and customer relationships. Wholesale remained under pressure, which is not surprising during a reset, but it means the company still needs more proof that it can rebuild demand without relying on discount-heavy or overly promotional wholesale channels.
Inventory was another sign that operations are getting cleaner. Q4 FY2026 inventory fell 3% to $915 million. That is not a dramatic swing, but it does indicate better discipline than the company showed during earlier phases of its reset.
Why the FY2027 outlook matters more than the quarter
The market’s real focus was the initial FY2027 outlook. Under Armour said revenue is expected to decline slightly year over year, with North America down at a low single-digit rate and EMEA and Asia-Pacific growing at a low single-digit rate.
Management did offer a more constructive margin view. Gross margin is expected to improve by 220 to 270 basis points in FY2027, but about 150 basis points of that benefit depends on the assumed reversal of prior IEEPA tariff costs. That caveat matters because it means a large share of the expected improvement is not purely operational.
The profit outlook was better than the sales outlook but still modest. Under Armour expects FY2027 operating income of $96 million to $116 million and adjusted operating income of $140 million to $160 million. Diluted EPS is projected to range from breakeven to $0.04, while adjusted diluted EPS is expected to range from $0.08 to $0.12.
What investors should watch next
Under Armour’s full-year FY2026 results show why investors remain cautious. Revenue for FY2026 fell 4% to $5.0 billion, gross margin declined 240 basis points to 45.5%, operating loss was $163 million, and net loss reached $496 million. Adjusted operating income of $107 million and adjusted net income of $50 million show the business can still generate improvement on an adjusted basis, but the GAAP picture remains weak.
The balance sheet is manageable but not especially comfortable for a brand still in turnaround mode. Under Armour ended Q4 FY2026 with $309 million in cash and cash equivalents, $605 million in restricted investments designated for senior note repayment, and $200 million of revolver borrowings outstanding. That leaves little room for execution mistakes if the top line stays soft longer than expected.
For now, the best reading is that Under Armour has stabilized parts of the model, especially DTC, inventory discipline, and operating expenses. The harder part is still ahead. Investors need to see North America improve, margin gains arrive without leaning too heavily on tariff assumptions, and FY2027 become a bridge to renewed growth rather than just another year of managed decline.
Key Signals for Investors
- Q4 FY2026 revenue fell only 1% and direct-to-consumer revenue rose 5%, showing the business is more stable than it was a year ago.
- Gross margin fell 470 basis points to 42.0%, and the company still posted GAAP operating and net losses, so profitability remains the main pressure point.
- The biggest FY2027 test is whether Under Armour can move from a forecast of slight revenue decline to a real growth path, especially in North America.
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