Gildan’s adjusted earnings rose from a year ago, but weaker sales and a sharp cut to its 2026 outlook changed the picture.
Gildan Activewear Inc. (TSX: GIL) reported third-quarter 2026 adjusted diluted EPS of US$1.54, 2.5% below the US$1.58 estimate. Revenue from continuing operations was US$1.47 billion. The company pointed to softer demand, product availability issues and an unfavourable sales mix. It also lowered its full-year forecasts for revenue, adjusted EPS and free cash flow.
Recent earnings trend
Gildan Activewear Inc.
GIL.TO
GIL.TO
Gildan Activewear Inc.
WealthAwesomeMarket cap
$11.19B
P/E
35.6x
Div. yield
1.67%
Div. / share
$0.95
52W high
$99.12
52W low
$43.69
1W change
+8.33%
Beta
1.23
Analyst Price Targets
Based on analyst covering GIL · as of Nov 6, 2026
Wall Street analysts forecast GIL stock price to rise 110.6% over the next 12 months.
Consensus
BullishBased on avg. target vs last close (formal rating unavailable for Canadian listings)
Avg. Target
C$103.26
+110.6% Upside
Previously C$103.42 on Nov 5, 2026
Current Price
C$49.04
Last close
Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on GIL's historical volatility
30-Day Vol
77.0%
Annualized
90-Day Vol
52.2%
Annualized
Trend (90d)
-50.0%
Annualized drift
90d Mean
C$41.02
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$46.21 | C$35.43 – C$60.26 |
| 60 trading days | C$43.54 | C$29.91 – C$63.38 |
| 90 trading days | C$41.02 | C$25.90 – C$64.97 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
Analyst coverage: 8 analyst(s) cover this name; upcoming EPS consensus is available.
Beat estimates in 3 of the last 4 comparable quarter(s).
| Fiscal period | Report date | Actual EPS | Estimate | Surprise |
|---|---|---|---|---|
| 2026-09-30 | 2026-11-05 | 1.5400 | 1.5800 | -2.5% |
| 2026-06-30 | 2026-07-29 | 1.2800 | 1.1200 | +14.3% |
| 2026-03-31 | 2026-04-30 | 0.4300 | 0.3500 | +22.9% |
| 2025-12-31 | 2026-02-26 | 0.9600 | 0.9500 | +1.1% |
| 2025-09-30 | 2025-10-29 | 1.0000 | 0.9800 | +2.0% |
| 2025-06-30 | 2025-07-31 | 0.9700 | 0.9600 | +1.0% |
For Canadian investors, the quarter brought higher adjusted earnings than a year ago, but sales fell short and the outlook weakened. See the GIL.TO stock page for more company data.
Investor takeaway: The EPS miss was small, but the sales shortfall and guidance cuts matter more. Gildan reported US$1.47 billion in third-quarter sales, below its guidance of about US$1.65 billion. It also cut its 2026 adjusted EPS outlook to US$3.70–US$3.80 from US$4.65–US$4.75. Investors will be watching for a recovery in demand and retail service levels, as well as progress on the HanesBrands integration, debt reduction and planned cost savings.
US$1.54 adjusted EPS, versus US$1.58 estimated
The 2.5% EPS miss came with third-quarter sales of US$1.47 billion, below guidance of about US$1.65 billion. Adjusted EPS still rose 54% from US$1.00 a year earlier. But with the 2026 outlook now lower, investors will be looking for sales to stabilize and integration savings to help offset weaker demand.
Bull case
Adjusted operating margin rose 380 basis points from a year earlier to 27%, above the company’s guidance. Adjusted diluted EPS from continuing operations increased 54% to US$1.54.
Gildan generated about US$622 million in free cash flow in the first nine months of the year and expects US$700–US$750 million for 2026. The HanesBrands integration could also bring savings. Management is targeting about US$100 million in synergies in 2026 and an annual run rate of US$250 million by the end of 2028. Gildan used proceeds from the sale of HanesBrands Australia to repay debt.
Bear case
Sales missed guidance as demand weakened and the company faced an unfavourable mix, product availability issues and service constraints. Management estimated these issues reduced third-quarter sales by about US$60 million. It expects lower customer replenishment to cut fourth-quarter sales by about US$145 million.
Gildan lowered its 2026 revenue outlook to US$5.4–US$5.5 billion from US$6.0–US$6.2 billion. Adjusted operating margin guidance fell to about 20% from about 21.8%, while free cash flow guidance dropped to US$700–US$750 million from about US$1 billion. Net debt stood at US$4.14 billion, and leverage was 2.7 times trailing 12-month pro forma adjusted EBITDA.
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