Adidas Sprinting on Multiple Fronts: Record-Breaking Shoes, World Cup Ambitions, and a 40% Dividend Hike

Adidas shares surge 8.7% as Q1 operating profit beats forecasts; London marathon record and 2026 World Cup sponsorship signal strong growth ahead.

Adidas is delivering a multi-layered narrative that has investors paying close attention. The German sportswear giant’s shares surged 8.7% on Tuesday to nearly €150, powered by first-quarter results that comfortably beat analyst expectations. While the stock has since eased back to €146.75 — still roughly 13% above its 52-week low from April but below the start of the year — the underlying momentum is building from several directions.

Operating profit for the quarter reached €705 million, roughly 9% above the consensus estimate of €647 million and 16% higher year-on-year. The operating margin improved to 10.7%. But these figures only tell part of the story.

A Marathon Moment That Money Can’t Buy

Just days before the earnings release, London delivered a marketing spectacle that Adidas could hardly have scripted better. Sabastian Sawe ran the marathon in 1:59:30, becoming the first person to officially break the two-hour barrier. Tigist Assefa simultaneously improved her own women’s world record to 2:15:41. Both athletes wore the Adizero Adios Pro Evo 3.

Adidas blanketed London with over 350 outdoor billboards to capitalise on the moment. On the resale market, the shoe has commanded prices as high as $4,600, and the initial run is sold out. Crucially, the Q1 numbers do not yet reflect this surge in brand heat — that impact is still to come.

World Cup: The Next Billion-Euro Catalyst

The next major catalyst is already on the horizon. Adidas is the official sponsor of the 2026 FIFA World Cup and will kit out 14 national teams — more than any other supplier. Argentina, Germany, Japan, Mexico and Spain will all wear the three stripes. The company expects the tournament to generate around €1 billion in revenue. Early signs are encouraging: the new away kit for the German national team is reportedly selling faster than the model released for Euro 2024.

The campaign “You Got This,” featuring Lionel Messi, Lamine Yamal and Florian Wirtz, will accompany the World Cup season.

Margin Pressures and Strategic Restraint

Not everything is running smoothly. Gross margin slipped 100 basis points to 51.1%, weighed down by currency effects and tariffs. In the wholesale channel, Adidas is deliberately tightening supply. With retailers increasingly resorting to discounting, the company is throttling deliveries to protect margin quality — a move that curbs growth in that channel but safeguards profitability.

Despite these headwinds, Adidas has confirmed its full-year guidance: revenue growth in the high single-digit percentage range and an operating profit of €2.3 billion.

Shareholder Rewards: Dividends and Buybacks

The board and supervisory board have proposed a dividend of €2.80 per share for the annual general meeting on May 7 — a 40% increase from the €2.00 paid last year. The total payout of roughly €500 million represents a 36% payout ratio from continuing operations, landing squarely within the company’s stated financial policy target. Last year’s distribution totalled €357 million.

On top of the dividend, Adidas has already completed the first tranche of its share buyback programme, acquiring 3.3 million shares for €500 million. The overall authorisation runs to €1 billion. The supervisory board has also authorised management to decide on further buybacks of up to €1 billion each in 2027 and 2028 — though this is an authorisation, not a binding commitment.

Combined with the planned dividend, total shareholder distributions for 2026 are expected to reach €1.5 billion. Shareholders wishing to attend the AGM needed to register by April 30. If the dividend proposal is approved, payment will follow on May 12, 2026.