Adidas stock faces UBS warning as 2027 growth risks mount

Published on 11/10/2026 at 10:34 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Adidas stock faces a weaker 2027 outlook after UBS cut its rating to Sell. The bank points to fading footwear momentum and margin pressure.

Growth risks move into focus

UBS expects adidas revenue growth of 4 percent in 2027, below the 7 percent analyst consensus.
The bank sees fading Terrace footwear momentum and margin pressure challenging the company after the 2026 World Cup.
adidas continues to target 9 to 10 percent currency-neutral revenue growth and around 2.5 billion euros in 2026 operating profit.

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UBS has cut adidas from Neutral to Sell, putting the sportswear group's post-2026 growth prospects under renewed scrutiny. The downgrade was issued on Tuesday, November 3, and reported by Yahoo Finance, citing an Investing.com report.

UBS lowered its 12-month price target to 156 euros from 160 euros. The bank argues that strong World Cup-related demand and new apparel launches have helped support roughly 10 percent sales growth in 2026, but may obscure a tougher consumer environment once that event-driven boost fades.

Footwear momentum faces a test

UBS forecasts currency-neutral adidas sales growth of 4 percent in 2027, below the 7 percent analyst consensus cited in the report. The bank sees the Terrace footwear cycle losing momentum, while newer franchises such as Superstar and Stan Smith may not fully replace the contribution from established styles.

The recent mix of growth also matters for investors. Lifestyle sales increased 4 percent in the first nine months of 2026, while performance products grew 27 percent. Running growth slowed to 19 percent in the third quarter from 28 percent in the previous quarter, according to the UBS assessment.

Margin pressure adds uncertainty

UBS expects adidas' 2027 gross margin at 51.3 percent, below the 52.3 percent consensus. It cites higher oil-related input costs, a less favorable product and channel mix, and the reversal of tariff-refund benefits received in 2026. More than 60 percent of the company's raw-material costs are oil-related, the report said.

The bank estimates a 2027 EBIT margin of 9.1 percent against a 10 percent consensus estimate and expects operating profit for 2027 and 2028 to remain more than 10 percent below market expectations. That view contrasts with adidas' current 2026 outlook, which calls for currency-neutral revenue growth of 9 to 10 percent and operating profit of around 2.5 billion euros.

Shares remain above prior close

Adidas stock traded at 182.35 euros on Lang & Schwarz at 10:30 CET on Tuesday, November 10, 2026, 2.19 percent above the Xetra close of Monday, November 9, at 178.45 euros. The market is therefore weighing a strong current-year earnings backdrop against the question of whether footwear and apparel demand can sustain growth in 2027.