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SN Q3 Earnings Beat Estimates on Margin Gains, 2026 Outlook Raised
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Key Takeaways
SN's Q3 adjusted EPS rose 56% to $2.34, while revenues climbed 21.2% to $1.98 billion.
International sales surged 25.2%, while tariff refunds helped boost SharkNinja's margins.
SN raised its 2026 sales growth outlook to 18-19% and adjusted EPS guidance to $6.65-$6.75.
SharkNinja, Inc. (SN - Free Report) delivered strong third-quarter 2026 results, supported by broad-based category growth, international expansion, operational improvements and tariff refund benefits. Adjusted earnings increased 56% year over year to $2.34 per share, surpassing the Zacks Consensus Estimate of $1.89.
Net sales increased 21.2% year over year to $1,976.4 million, exceeding the consensus estimate of $1,864 million. This marked the company's 14th consecutive quarter of double-digit revenue growth. Sales growth was also 21.2% on a constant-currency basis. Strong execution across core businesses and new product launches prompted management to raise its 2026 outlook.
SharkNinja, Inc. Price, Consensus and EPS Surprise
SharkNinja generated sales growth across all four product categories. Cleaning Appliances revenues increased 4.1% year over year to $617.2 million, driven by corded and cordless vacuums. Cooking and Beverage Appliances revenues surged 36.6% to $597.7 million, supported by Ninja Luxe Café and Ninja Crispi.
Food Preparation Appliances revenues advanced 18.3% to $485.5 million, benefiting from blending products and innovations such as Ninja CrushBOSS. Beauty and Home Environment Appliances revenues jumped 45.8% to $276.1 million, reflecting strength across skincare, air purifiers and fans.
Management highlighted Ninja HydraSense, its $199 water filtration product, as an important category expansion. Early replacement-filter subscription adoption exceeded internal expectations. SharkNinja now operates across 41 subcategories and intends to enter two additional subcategories in 2027.
SharkNinja's International Expansion Drives Growth
International net sales increased 25.2% year over year to $662.7 million, outpacing domestic sales growth of 19.4% to $1,313.7 million. Domestic sales include the United States and Canada. U.S. revenues rose 20.8% to approximately $1.22 billion, primarily reflecting strength in the company's existing businesses.
The United Kingdom delivered 13.3% sales growth to $268 million. Spain and Italy benefited from transitions to direct operating models, while Mexico maintained strong momentum. Latin American distributor markets recorded their highest quarterly sales.
Management expects international growth to accelerate in the fourth quarter compared with the third quarter. SharkNinja also remains on track to expand TikTok Shop operations to 14 countries ahead of the holiday season, strengthening its global distribution reach.
SN Records Significant Margin Gains From Tariff Refunds
Gross profit increased 43.1% year over year to $1,170 million, with gross margin expanding 910 basis points to 59.2%. Adjusted gross profit rose 34.8% to $1,105.7 million, while adjusted gross margin expanded 560 basis points to 55.9%.
Profitability benefited from $243.8 million in tariff refund claims, partially offset by $45.2 million payable to factory partners. Adjusted gross profit included $134.3 million related to duties expensed in 2026. Another $109.6 million associated with 2025 duties benefited GAAP results but was excluded from adjusted performance.
Cost optimization and favorable category and channel mix provided additional support, partially offset by unfavorable currency movements and increased retailer activations.
However, management said gross margin would have declined approximately 100 basis points year over year excluding the refund benefit. Visibility into the refunds allowed the company to delay certain price increases despite commodity, fuel and foreign-exchange headwinds.
SharkNinja Accelerates Technology and Marketing Investments
Research and development (R&D) expenses increased 27% year over year to $117.9 million, reflecting continued innovation investments. Sales and marketing expenses climbed 25.9% to $460.7 million, supported by increased advertising and selling activities. General and administrative (G&A) expenses jumped 55% to $148.5 million, reflecting higher personnel and technology investments and increased share-based compensation. G&A share-based compensation rose to $23.5 million from $2.7 million a year earlier.
Adjusted operating expenses totaled approximately $680 million, representing 34.4% of sales compared with 32.6% a year earlier. Adjusted R&D expenses increased 24.4% to $110.6 million, adjusted sales and marketing expenses rose 25.3% to $444.6 million, and adjusted G&A expenses increased 43.3% to $125 million.
Management emphasized artificial intelligence initiatives under its JailBreak SharkNinja program, targeting operational efficiency and marketing effectiveness. AI-powered website search has generated an early high-single-digit increase in revenue per search visitor, while the company continues developing social commerce capabilities.
The company’s largest AI investment priorities include optimizing media and promotional spending, which together exceed $1.5 billion annually. Management expects investments made in 2026 to support performance in 2027, 2028 and beyond.
SN Delivers Strong Earnings & EBITDA Growth
Adjusted operating income increased 47.2% year over year to $425.5 million, while adjusted operating margin expanded to 21.5% from 17.7%.
Adjusted EBITDA rose 45.7% to $461.3 million, with the margin expanding to 23.3% from 19.4%. Adjusted net income rose 55.1% to $330.9 million.
Operating income increased 68.5% to $442.9 million. Net income climbed 79.3% to $338.4 million, while earnings advanced to $2.39 from $1.33.
SharkNinja ended September with cash and cash equivalents of $487.8 million and revolving credit availability of $495.3 million. Total debt, excluding unamortized deferred financing costs, stood at $708.8 million.
Inventories reached $1,428.2 million, increasing 42.5% from December 2025 and 23.3% year over year. Operating cash flow for the first nine months totaled $107.4 million compared with $47.1 million a year earlier.
The company repurchased 293,132 shares for $50 million during the quarter, bringing year-to-date repurchases to $169.7 million.
SN Raises 2026 Outlook on Operational Strength
Management raised its 2026 net sales growth outlook to 18-19% from 16-17%. Adjusted earnings are projected between $6.65 and $6.75 per share, up from $6.45-$6.55. The updated earnings range represents year-over-year growth of 25.9-27.8%.
Adjusted EBITDA is expected to be between $1.38 billion and $1.391 billion, up from the previous forecast of $1.357-$1.369 billion. This implies annual adjusted EBITDA growth of 21.5-22.5%. Capital expenditures remain projected at $190-$210 million, tracking toward the midpoint.
Based on the high end of its updated full-year outlook, management anticipates approximately 17% fourth-quarter revenue growth and 9% adjusted EBITDA growth. Adjusted gross margin is expected to contract approximately 100 basis points year over year, partly reflecting planned reinvestments shifting from the third quarter into the fourth quarter. These initiatives target longer-term growth opportunities in 2027 and beyond. Management reiterated its objective of growing adjusted EBITDA faster than net sales in 2027.
SN Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Shares of this Zacks Rank #2 (Buy) company have risen 21.9% over the past three months against the industry’s 3.2% decline.
The Zacks Consensus Estimate for Williams-Sonoma’s current financial-year sales and earnings indicates growth of 4.1% and 7.5%, respectively, from the year-ago reported numbers. WSM delivered a trailing four-quarter earnings surprise of 4.9%, on average.
ACCO Brands Corporation (ACCO - Free Report) is a global consumer and business products company that designs, manufactures and markets office, school, technology and workspace products. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for ACCO Brands’ current financial-year earnings and sales suggests growth of 16.7% and 4.2%, respectively, from the year-ago actuals. ACCO delivered a trailing four-quarter average earnings surprise of 48.7%.
Alliance Laundry Holdings Inc. (ALH - Free Report) is a provider of commercial laundry systems. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Alliance Laundry’s current financial-year earnings and sales suggests growth of 32.4% and 6.3%, respectively, from the year-ago actuals. ALH delivered a trailing four-quarter average earnings surprise of 19.7%.
View the Zacks #1 Rank List
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SN Q3 Earnings Beat Estimates on Margin Gains, 2026 Outlook Raised
Key Takeaways
SharkNinja, Inc. (SN - Free Report) delivered strong third-quarter 2026 results, supported by broad-based category growth, international expansion, operational improvements and tariff refund benefits. Adjusted earnings increased 56% year over year to $2.34 per share, surpassing the Zacks Consensus Estimate of $1.89.
Net sales increased 21.2% year over year to $1,976.4 million, exceeding the consensus estimate of $1,864 million. This marked the company's 14th consecutive quarter of double-digit revenue growth. Sales growth was also 21.2% on a constant-currency basis. Strong execution across core businesses and new product launches prompted management to raise its 2026 outlook.
SharkNinja, Inc. Price, Consensus and EPS Surprise
SharkNinja, Inc. price-consensus-eps-surprise-chart | SharkNinja, Inc. Quote
SN Delivers Growth Across All Product Categories
SharkNinja generated sales growth across all four product categories. Cleaning Appliances revenues increased 4.1% year over year to $617.2 million, driven by corded and cordless vacuums. Cooking and Beverage Appliances revenues surged 36.6% to $597.7 million, supported by Ninja Luxe Café and Ninja Crispi.
Food Preparation Appliances revenues advanced 18.3% to $485.5 million, benefiting from blending products and innovations such as Ninja CrushBOSS. Beauty and Home Environment Appliances revenues jumped 45.8% to $276.1 million, reflecting strength across skincare, air purifiers and fans.
Management highlighted Ninja HydraSense, its $199 water filtration product, as an important category expansion. Early replacement-filter subscription adoption exceeded internal expectations. SharkNinja now operates across 41 subcategories and intends to enter two additional subcategories in 2027.
SharkNinja's International Expansion Drives Growth
International net sales increased 25.2% year over year to $662.7 million, outpacing domestic sales growth of 19.4% to $1,313.7 million. Domestic sales include the United States and Canada. U.S. revenues rose 20.8% to approximately $1.22 billion, primarily reflecting strength in the company's existing businesses.
The United Kingdom delivered 13.3% sales growth to $268 million. Spain and Italy benefited from transitions to direct operating models, while Mexico maintained strong momentum. Latin American distributor markets recorded their highest quarterly sales.
Management expects international growth to accelerate in the fourth quarter compared with the third quarter. SharkNinja also remains on track to expand TikTok Shop operations to 14 countries ahead of the holiday season, strengthening its global distribution reach.
SN Records Significant Margin Gains From Tariff Refunds
Gross profit increased 43.1% year over year to $1,170 million, with gross margin expanding 910 basis points to 59.2%. Adjusted gross profit rose 34.8% to $1,105.7 million, while adjusted gross margin expanded 560 basis points to 55.9%.
Profitability benefited from $243.8 million in tariff refund claims, partially offset by $45.2 million payable to factory partners. Adjusted gross profit included $134.3 million related to duties expensed in 2026. Another $109.6 million associated with 2025 duties benefited GAAP results but was excluded from adjusted performance.
Cost optimization and favorable category and channel mix provided additional support, partially offset by unfavorable currency movements and increased retailer activations.
However, management said gross margin would have declined approximately 100 basis points year over year excluding the refund benefit. Visibility into the refunds allowed the company to delay certain price increases despite commodity, fuel and foreign-exchange headwinds.
SharkNinja Accelerates Technology and Marketing Investments
Research and development (R&D) expenses increased 27% year over year to $117.9 million, reflecting continued innovation investments. Sales and marketing expenses climbed 25.9% to $460.7 million, supported by increased advertising and selling activities. General and administrative (G&A) expenses jumped 55% to $148.5 million, reflecting higher personnel and technology investments and increased share-based compensation. G&A share-based compensation rose to $23.5 million from $2.7 million a year earlier.
Adjusted operating expenses totaled approximately $680 million, representing 34.4% of sales compared with 32.6% a year earlier. Adjusted R&D expenses increased 24.4% to $110.6 million, adjusted sales and marketing expenses rose 25.3% to $444.6 million, and adjusted G&A expenses increased 43.3% to $125 million.
Management emphasized artificial intelligence initiatives under its JailBreak SharkNinja program, targeting operational efficiency and marketing effectiveness. AI-powered website search has generated an early high-single-digit increase in revenue per search visitor, while the company continues developing social commerce capabilities.
The company’s largest AI investment priorities include optimizing media and promotional spending, which together exceed $1.5 billion annually. Management expects investments made in 2026 to support performance in 2027, 2028 and beyond.
SN Delivers Strong Earnings & EBITDA Growth
Adjusted operating income increased 47.2% year over year to $425.5 million, while adjusted operating margin expanded to 21.5% from 17.7%.
Adjusted EBITDA rose 45.7% to $461.3 million, with the margin expanding to 23.3% from 19.4%. Adjusted net income rose 55.1% to $330.9 million.
Operating income increased 68.5% to $442.9 million. Net income climbed 79.3% to $338.4 million, while earnings advanced to $2.39 from $1.33.
SharkNinja Maintains Liquidity Amid Inventory Growth
SharkNinja ended September with cash and cash equivalents of $487.8 million and revolving credit availability of $495.3 million. Total debt, excluding unamortized deferred financing costs, stood at $708.8 million.
Inventories reached $1,428.2 million, increasing 42.5% from December 2025 and 23.3% year over year. Operating cash flow for the first nine months totaled $107.4 million compared with $47.1 million a year earlier.
The company repurchased 293,132 shares for $50 million during the quarter, bringing year-to-date repurchases to $169.7 million.
SN Raises 2026 Outlook on Operational Strength
Management raised its 2026 net sales growth outlook to 18-19% from 16-17%. Adjusted earnings are projected between $6.65 and $6.75 per share, up from $6.45-$6.55. The updated earnings range represents year-over-year growth of 25.9-27.8%.
Adjusted EBITDA is expected to be between $1.38 billion and $1.391 billion, up from the previous forecast of $1.357-$1.369 billion. This implies annual adjusted EBITDA growth of 21.5-22.5%. Capital expenditures remain projected at $190-$210 million, tracking toward the midpoint.
Based on the high end of its updated full-year outlook, management anticipates approximately 17% fourth-quarter revenue growth and 9% adjusted EBITDA growth. Adjusted gross margin is expected to contract approximately 100 basis points year over year, partly reflecting planned reinvestments shifting from the third quarter into the fourth quarter. These initiatives target longer-term growth opportunities in 2027 and beyond. Management reiterated its objective of growing adjusted EBITDA faster than net sales in 2027.
SN Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Shares of this Zacks Rank #2 (Buy) company have risen 21.9% over the past three months against the industry’s 3.2% decline.
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Williams-Sonoma, Inc. (WSM - Free Report) is a multi-channel specialty retailer of premium-quality home products. It currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Williams-Sonoma’s current financial-year sales and earnings indicates growth of 4.1% and 7.5%, respectively, from the year-ago reported numbers. WSM delivered a trailing four-quarter earnings surprise of 4.9%, on average.
ACCO Brands Corporation (ACCO - Free Report) is a global consumer and business products company that designs, manufactures and markets office, school, technology and workspace products. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for ACCO Brands’ current financial-year earnings and sales suggests growth of 16.7% and 4.2%, respectively, from the year-ago actuals. ACCO delivered a trailing four-quarter average earnings surprise of 48.7%.
Alliance Laundry Holdings Inc. (ALH - Free Report) is a provider of commercial laundry systems. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Alliance Laundry’s current financial-year earnings and sales suggests growth of 32.4% and 6.3%, respectively, from the year-ago actuals. ALH delivered a trailing four-quarter average earnings surprise of 19.7%.