Callaway Golf Q2 revenue beats estimates; lifts forecast

Callaway Golf

04/08/2026 21:36

Overview
U.S. golf equipment maker's Q2 revenue rose 2%, beating analyst expectations
Q2 adjusted EBITDA grew 36% and beat analyst expectations, driven by improved gross margins
Company repurchased $84 mln in shares and repaid $421 mln in debt during Q2

Outlook
Callaway raises 2026 net sales outlook to $2.045 bln-$2.070 bln
Company lifts 2026 adjusted EBITDA forecast to $246 mln-$260 mln
Callaway sees Q3 net sales of $415 mln-$435 mln, down from $463 mln a year ago

Result Drivers
GOLF EQUIPMENT GROWTH - Net sales rose 4.5% in Golf Equipment, driven by strength in clubs and balls
GROSS MARGIN INITIATIVES - Gross margins improved due to price increases, cost reductions and rationalizing lower margin business
APPAREL AND FX HEADWINDS - Apparel, Gear and Other segment sales fell 3.6% due to shipment timing and foreign exchange headwinds in Asia

Company press release: ID:nPn9v44q0a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$612.20 mln
$605.63 mln (10 Analysts)
Q2 Net Income
 
$75.20 mln
 
Q2 Adjusted EBITDA
Beat
$124.90 mln
$104.80 mln (9 Analysts)
Q2 Operating Income
 
$114.80 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the recreational products peer group is "buy."
Wall Street's median 12-month price target for Callaway Golf Co is $19.00, about 0.5% below its August 3 closing price of $19.09
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads
Aug 3 - New Zealand's Briscoe Group half-year revenue edges up on strong demand for sporting goods
Aug 3 - Douglas Dynamics Q2 sales rise 10% on strong pre-season orders at unit
Aug 4 - Hugo Boss beats Q2 profit estimates, maintains annual guidance

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)