Under Armour, Inc. (UAA) AI Stock Analysis
UAA AI stock analysis summary
AI ResearchUnder Armour, Inc. (UAA) develops and distributes athletic performance apparel, footwear, and accessories worldwide. The company has faced operational headwinds, with FY2026 revenue declining 3.9% to $4.97B and net income dropping to -$495.6M. In the latest quarter ended June 30, 2026, revenue fell 3.2% year-over-year while trailing twelve-month operating margin stood at -1.6%.
- Market cap
- $2.04B
- Revenue (TTM)
- $4.93B
- P/E
- — fwd 47.4x
- 1Y return
- -0.4% S&P 500 16.8%
- Avg. target
- $6.27 32.3% vs last close
Bull case
- The consensus mean price target of $6.27 implies a 32.3% upside potential compared to the last close of $4.74.
- Under Armour demonstrated earnings execution by beating consensus EPS estimates in 3 of the last 4 quarters.
- Analysts project an 80.6% EPS rebound to $0.19 alongside 2.2% revenue growth to $4.84B for the fiscal year ending March 31, 2028.
Bear case
- Annual net losses expanded significantly to -$495.6M in FY2026, accompanied by negative free cash flow of -$162.2M.
- Long-term shareholder returns have lagged broader markets, with the stock posting a return of -76.9% over five years compared to an 83.0% gain for the S&P 500.
- In the latest quarter ended June 30, 2026, quarterly revenue fell 3.2% year-over-year while quarterly earnings dropped 98.9%.
What Under Armour does
Under Armour, Inc. develops, markets, and distributes high-performance apparel, footwear, and accessories for men, women, and youth athletes. Its apparel portfolio includes compression, fitted, and loose styles across sporting activities, complemented by footwear for running, training, basketball, cleated sports, recovery, and outdoor use. The company also sells accessories including gloves, bags, headwear, and sports masks, alongside digital platforms MapMyRun and MapMyRide. Under Armour distributes products through sporting goods chains, specialty retailers, department stores, institutional athletic channels, robust e-commerce platforms, and 422 company-operated brand and factory house stores globally.
Growth and profitability
Under Armour's revenue decreased from $5.90B in FY2023 to $5.70B in FY2024, $5.17B in FY2025, and $4.97B in FY2026, representing a 3.9% drop in FY2026. Gross margin contracted to 45.5% in FY2026 from 47.9% in FY2025, while operating margin turned negative at -0.7%. Net income deteriorated from $232.0M in FY2024 to -$201.3M in FY2025 and -$495.6M in FY2026. For the latest quarter ended June 30, 2026, quarterly revenue fell 3.2% year-over-year, and quarterly earnings fell 98.9%. Over the trailing twelve months, revenue reached $4.93B with a net profit margin of -10.0% and an operating margin of -1.6%.
Balance sheet and cash flow
As of June 30, 2026, Under Armour held $396.0M in cash and short-term investments against total debt of $1.38B, resulting in net debt of $980.1M. Shareholders' equity was $1.43B, producing a debt-to-equity ratio of 0.96 and a current ratio of 1.81. Cash flow has been negative, with FY2026 operating cash flow of -$75.1M and free cash flow of -$162.2M. Capital expenditures totaled $87.1M and share buybacks were $25.0M in FY2026, contributing to a 10.0% reduction in share count over 5 years.
Valuation and performance
At a last close of $4.74, Under Armour has a market capitalization of $2.04B and an enterprise value of $2.99B. Its forward P/E of 47.4x and EV-to-EBITDA of 28.4x trade well above the median of its US-listed Consumer Cyclical peers of 14.1x and 11.1x, respectively. Conversely, its price-to-sales ratio of 0.4x is below the peer median of 0.7x. Over the past year, the stock returned -0.4% compared to 16.8% for the S&P 500. Over 5 years, UAA returned -76.9% while the S&P 500 gained 83.0%.
What analysts expect
Wall Street sentiment reflects caution, with 18 Hold, 4 Strong Buy, 2 Sell, and 3 Strong Sell ratings. The mean price target of $6.27 represents an upside of 32.3% from the last close of $4.74. For the fiscal year ending March 31, 2027, consensus estimates project EPS of $0.11 on revenue of $4.73B. For the following fiscal year, 25 analysts forecast revenue to rise 2.2% to $4.84B with EPS of $0.19. Under Armour beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 6, 2026.
Key risks and what to watch
- Under Armour carries total debt of $1.38B against $396.0M in cash, leading to net debt of $980.1M amidst negative annual operating cash flow.
- Short interest stands at 45.5% of float, indicating significant market skepticism regarding the company's turnaround.
- The stock trades at a forward P/E multiple of 47.4x, which sits substantially above the median of its US-listed Consumer Cyclical peers of 14.1x.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this UAA AI stock analysis
This page is an AI-written research summary of Under Armour, Inc. (UAA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: UAA income statement, UAA balance sheet, UAA key metrics, UAA analyst forecast, UAA chart. See the UAA stock overview for the latest quote and news.
UAA AI stock analysis FAQ
Does Under Armour pay a dividend?
Under Armour does not pay a regular dividend. For capital returns, the company deployed $25.0M toward share buybacks in FY2026.
What is Under Armour's valuation compared to peers?
Under Armour trades at a forward P/E of 47.4x and an EV-to-EBITDA of 28.4x, both above the US-listed Consumer Cyclical peer medians of 14.1x and 11.1x. Its price-to-sales multiple is 0.4x compared to the peer median of 0.7x.
How has Under Armour stock performed against the S&P 500?
The stock returned -0.4% over the past year and -76.9% over the past five years. Over those same periods, the S&P 500 generated returns of 16.8% and 83.0%, respectively.
When is Under Armour's next earnings report and what are analysts forecasting?
Under Armour is scheduled to report earnings on November 6, 2026. Consensus estimates for the fiscal year ending March 31, 2027, project revenue of $4.73B and EPS of $0.11.