Gildan Activewear Inc. Surpasses Expectations in Record Fourth‑Quarter Performance
Gildan Activewear Inc. (GIL) released its fourth‑quarter earnings on February 26, 2026, delivering a performance that eclipsed market expectations on both revenue and profitability metrics. The company posted a record fourth‑quarter revenue of $1,078 million and an adjusted diluted earnings per share (EPS) that exceeded consensus estimates.
Earnings Highlights
| Metric | GIL 2025‑Q4 | Consensus | Variance |
|---|---|---|---|
| Net sales | $1,078 million | $1,050 million | +$28 million |
| Adjusted diluted EPS | $1.75 | $1.60 | +$0.15 |
The company’s strong top‑line growth was driven by sustained demand for its undecorated blank apparel, which is subsequently customized by screen‑printing partners worldwide. GIL’s cost‑control measures, combined with its efficient production footprint, translated into a robust bottom line.
Guidance for FY26
GIL has outlined an ambitious outlook for the 2026 fiscal year. The company projects a 12‑month revenue run‑rate that surpasses current expectations, bolstered by planned expansion in Bangladesh. The announced Phase 2 construction project will augment manufacturing capacity, positioning GIL to capture additional market share in both emerging and developed economies.
Key guidance points include:
- Revenue run‑rate: Targeted at $4.5 billion, up from the $4.2 billion previously projected.
- Adjusted diluted EPS: Forecasted to reach $3.50 per share, reflecting improved margin discipline.
- Run‑rate synergies: The company has raised its targeted synergies, anticipating cost savings of $150 million annually as integration progresses.
Strategic Growth in Bangladesh
GIL’s decision to invest in a second phase of its Bangladesh operations signals a commitment to low‑cost production while maintaining quality standards. The expansion is expected to create significant operational synergies, reduce lead times, and enhance responsiveness to global screen‑printing partners.
Market Reaction and Analyst Sentiment
Following the earnings announcement, GIL’s stock advanced sharply, reflecting investor confidence in the company’s growth trajectory. RBC Capital has upgraded its price target for GIL, citing the company’s strategic expansion plans and improved earnings outlook. The upgrade reflects a bullish view that the company’s market position and operational efficiencies will sustain long‑term value creation.
Conclusion
GIL’s record fourth‑quarter performance, coupled with forward‑looking guidance and a strategic expansion into Bangladesh, positions the company as a leading player in the global active‑wear supply chain. The alignment of robust financial results with clear execution plans reinforces investor sentiment and underscores GIL’s capacity to deliver shareholder value in a competitive market.
