We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Callaway Golf hit a record 23.9% U.S. golf ball share at green grass locations in March.
CALY raised full-year revenue and EBITDA guidance amid strong golf ball and club demand.
Callaway Golf delivered a 260-basis-point gross margin gain despite tariff pressures.
Callaway Golf Company (CALY - Free Report) appears to be building a stronger long-term growth story around its golf ball business, with management highlighting steady market-share gains, improving profitability and growing consumer demand during the first-quarter 2026 earnings call.
The company’s latest Chrome Tour lineup has emerged as a key growth driver. Management noted that customer reception has been strong, helping Callaway expand its presence in the premium golf ball category. At the same time, the Supersoft franchise continues to perform well, giving the company momentum across multiple price points.
A major highlight was Callaway’s growing share in the green grass channel, which has become its largest and most strategic distribution platform. The company’s U.S. golf ball market share at green grass locations reached a record 23.9% in March, rising 350 basis points year over year. Management credited this performance to years of investment in product quality, manufacturing capabilities and distribution expansion.
Callaway also believes its golf ball manufacturing operations are now operating at world-class efficiency levels. This is important because higher production efficiency can support margin expansion even amid ongoing tariff and raw material cost pressures. The company already delivered a 260-basis-point improvement in gross margin during the quarter despite elevated tariffs.
Beyond golf balls, healthy demand for the new Quantum club lineup and strong growth at TravisMathew are supporting overall momentum. Management raised full-year revenue and EBITDA guidance, reflecting confidence in consumer demand and the resilience of the golf market. With increasing market share, stronger profitability and continued innovation, Callaway’s golf ball business could remain an important engine of sustainable long-term growth.
CALY’s Price Performance, Valuation & Estimates
Shares of CALY have gained 65.3% in the past six months compared with the industry’s increase of 6.2%. In the same time frame, shares of other companies like Acushnet Holdings Corp. (GOLF - Free Report) and American Outdoor Brands, Inc. (AOUT - Free Report) have gained 12.4% and 41.1%, respectively.
Price Performance
Image Source: Zacks Investment Research
CALY is currently trading at a discount compared with the industry, with a forward 12-month price-to-sales ratio of 1.55. Acushnet Holdings and American Outdoor are trading at P/S of 0.48X and 1.85X, respectively.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CALY’s 2026 earnings has increased in the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Callaway Golf Company's Golf Ball Momentum Signals Long-Term Growth
Key Takeaways
Callaway Golf Company (CALY - Free Report) appears to be building a stronger long-term growth story around its golf ball business, with management highlighting steady market-share gains, improving profitability and growing consumer demand during the first-quarter 2026 earnings call.
The company’s latest Chrome Tour lineup has emerged as a key growth driver. Management noted that customer reception has been strong, helping Callaway expand its presence in the premium golf ball category. At the same time, the Supersoft franchise continues to perform well, giving the company momentum across multiple price points.
A major highlight was Callaway’s growing share in the green grass channel, which has become its largest and most strategic distribution platform. The company’s U.S. golf ball market share at green grass locations reached a record 23.9% in March, rising 350 basis points year over year. Management credited this performance to years of investment in product quality, manufacturing capabilities and distribution expansion.
Callaway also believes its golf ball manufacturing operations are now operating at world-class efficiency levels. This is important because higher production efficiency can support margin expansion even amid ongoing tariff and raw material cost pressures. The company already delivered a 260-basis-point improvement in gross margin during the quarter despite elevated tariffs.
Beyond golf balls, healthy demand for the new Quantum club lineup and strong growth at TravisMathew are supporting overall momentum. Management raised full-year revenue and EBITDA guidance, reflecting confidence in consumer demand and the resilience of the golf market.
With increasing market share, stronger profitability and continued innovation, Callaway’s golf ball business could remain an important engine of sustainable long-term growth.
CALY’s Price Performance, Valuation & Estimates
Shares of CALY have gained 65.3% in the past six months compared with the industry’s increase of 6.2%. In the same time frame, shares of other companies like Acushnet Holdings Corp. (GOLF - Free Report) and American Outdoor Brands, Inc. (AOUT - Free Report) have gained 12.4% and 41.1%, respectively.
Price Performance
Image Source: Zacks Investment Research
CALY is currently trading at a discount compared with the industry, with a forward 12-month price-to-sales ratio of 1.55. Acushnet Holdings and American Outdoor are trading at P/S of 0.48X and 1.85X, respectively.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CALY’s 2026 earnings has increased in the past seven days.
Image Source: Zacks Investment Research
CALY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.