Amer Sports Stock Delivers 27% Revenue Growth as Salomon Crosses $2 Billion in Sales

Key Stats

• Current price: $37
• Full-year 2025 revenue: $6.6 billion, +27% YoY
• Full-year 2025 adjusted operating margin: 12.8%, +170bps YoY
• Q4 2025 revenue: $2.1 billion, +28% YoY
• Q4 2025 adjusted diluted EPS: $0.31 vs. $0.17 prior year
• Full-year 2026 revenue guidance: +16% to +18% growth
• Full-year 2026 adjusted EPS guidance: $1.10 to $1.15
• TIKR model price target: $97
• Implied upside: +162% over 5 years (~23% annualized)

Amer Sports stock is up big but still trading at less than half the TIKR model price. Check the assumptions yourself with professional-grade tools, for free →

Amer Sports Stock Delivers 27% Full-Year Growth as Arc’teryx and Salomon Drive a Breakout 2025

Amer Sports stock (AS) closed 2025 with full-year revenue of $6.6 billion, up 27% year-over-year, while adjusted operating margin expanded 170 basis points to 12.8%, with double-digit growth across all four segments, regions, and channels.

Q4 revenue grew 28% to $2.1 billion, with adjusted diluted EPS of $0.31 more than doubling from $0.17 in the prior-year quarter.

The growth was led by Technical Apparel, which grew 34% in Q4 to $1 billion, and Outdoor Performance, which grew 29% to $764 million, with Salomon crossing the $2 billion annual sales milestone for the first time in the brand’s 79-year history.

CEO James Zheng called 2025 a breakout year: “We generated 27% revenue growth to $6.6 billion and 170 basis points of adjusted operating margin expansion to 12.8% with double-digit growth across all segments, regions and channels.”

Arc’teryx posted a 16% omni-comp in Q4, driven by full-price selling after the brand intentionally pulled back from Black Friday and Double Eleven promotions, with footwear growing nearly 40% and women’s up 40%.

The one blemish in Q4 was adjusted operating margin declining 110 basis points to 12.5%, entirely attributable to accelerated SG&A investments behind Salomon, including marketing campaigns for XT-Whisper and GRVL, 30 net new China store openings, and the launch of a new Paris hub and creative director hire.

The company ended 2025 with $291 million in net debt and only 0.3x net leverage, generating $730 million in operating cash flow versus $425 million in 2024.

For 2026, management guided to 16% to 18% revenue growth, adjusted operating margin of 13.1% to 13.3%, and adjusted diluted EPS of $1.10 to $1.15 on approximately 564 million fully diluted shares.

Q1 2026 guidance calls for 22% to 24% revenue growth, with adjusted operating margin of 14% to 14.5% and adjusted diluted EPS of $0.28 to $0.30.

Amer Sports stock is generating $730 million in operating cash flow with three brand growth engines firing at once. See if the valuation reflects that on TIKR, free →

Amer Sports Stock: What the Income Statement Says

Amer Sports stock is backed by an income statement showing consistent gross margin expansion across 2025, with the business compounding profitability as mix shifts toward higher-margin DTC and premium product categories.

Gross margin expanded to ~58% in Q4, up from 56% in the prior-year quarter, continuing a step-up trajectory from ~54% in Q1 2024 to the current level.

Gross profit grew 32% year-over-year in Q4 to $1.21 billion, ahead of the already strong 29% to 34% gross profit growth rates seen across the prior three quarters of 2025.

Operating income held at $230 million in Q4, growing 19.5% year-over-year, with operating margin of ~11% compared to ~12% in the prior-year quarter, reflecting the deliberate Salomon SG&A investment CFO Andrew Page described as opportunistic rather than structural.

The full-year operating trajectory shows the underlying leverage: operating margins of 15%, 4%, and 13% in Q1 through Q3 2025, with the Q2 dip driven by seasonality in the Outdoor Performance segment rather than any deterioration in the business.

Management guided to full-year 2026 adjusted operating margin of 13.1% to 13.3%, representing 30 to 50 basis points of expansion from 2025, with gross margin expected at approximately 59%.

Valuation Model Take

The TIKR model prices Amer Sports stock at $97, implying roughly 162% total upside from the current price of $37 over the next 5 years, or ~23% annualized.

The mid-case model runs on a 14.2% revenue CAGR and a 12% net income margin, assumptions that are directly supported by the 27% full-year 2025 revenue growth and the company’s stated long-term algorithm of 30 to 70 basis points of annual operating margin expansion.

The 2025 result reinforces the model’s foundation: gross margin is already at 57.7% and expanding, the leverage ratio is at 0.3x, and the two highest-growth brands, Arc’teryx and Salomon, are both accelerating into 2026 with the best order books in company history.

With three brand growth engines in different stages of maturity, $730 million in operating cash flow, and a clean balance sheet, the Amer Sports stock investment case is as strong entering 2026 as it has been since the company’s IPO.

The central tension for Amer Sports stock is whether the Salomon SG&A investment cycle compresses near-term margins long enough to matter, or whether the long-term brand compounding story makes the current price irrelevant.

Near-Term

• Q4 adjusted operating margin declined 110 basis points to 12.5% despite 28% revenue growth, with Outdoor Performance segment margin contracting 490 basis points to 6.2% as Salomon investments outpaced revenue flow-through
• The 2026 full-year operating margin guide of 13.1% to 13.3% sits at the low end of the long-term algorithm, and Salomon investment intensity continues into Q1 2026 before management expects a return to modest year-over-year margin expansion
• Inventory grew 33% against 27% sales growth, with normalization not expected until the second half of 2026, while CapEx simultaneously steps up from $310 million to $400 million
• Greater China momentum is strong but management explicitly cautioned it is too early to declare a fully bullish 2026 outlook for the region

Long-Term

• Salomon crossed $2 billion in annual sales growing 35%, with brand awareness up 15 points globally since 2023, North America order books accelerating, and the first-ever creative director hired to build long-duration brand equity
• Arc’teryx delivered 160 basis points of operating margin expansion in Q4 at a 34% revenue growth rate, proving the DTC store model scales as it comps positively and supporting the 22% segment margin guide for 2026
• The TIKR mid-case assumes a 14.2% revenue CAGR through 2035, a rate the company already exceeded at 27% in 2025, with Wilson Tennis 360 Softgoods doubling in 2025 as a third growth engine still in early innings
• Net leverage of 0.3x and $730 million in 2025 operating cash flow give management full flexibility to fund growth while continuing to retire the $800 million, 6.75% senior secured notes

Management is guiding to 16% to 18% growth in 2026 with EPS of $1.10 to $1.15. Model it yourself on TIKR, for free →

Should You Invest in Amer Sports, Inc.?

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