Investor focus is intensifying on Adidas as the sportswear giant prepares to release its full-year results and, crucially, its outlook for 2026. In a notable show of confidence, the company’s ongoing share buyback program is providing a foundation of support. The central question for the market is whether this internal vote of confidence will solidify the stock’s recent rebound or if the upcoming report in early March could trigger a setback.
Management Confidence Through Buybacks
The leadership team in Herzogenaurach is taking concrete action. The current initiative to repurchase company shares serves as a clear signal of management’s belief in Adidas’s robust financial health and operational cash flow. Market participants frequently interpret such a move as an indication that executives consider the equity undervalued.
This strategy appears to be yielding short-term benefits. Following a challenging twelve-month period that saw the stock decline by approximately 33%, the shares have recently staged a recovery. Over the last 30 trading days alone, the price has advanced by more than 11%, closing at €162.30 on Thursday. The repurchase plan acts as a stabilizing mechanism, with the additional effect of potentially boosting earnings per share.
Should investors sell immediately? Or is it worth buying Adidas?
Technical Picture Shows Tentative Improvement
The renewed appetite from buyers is also visible on the charts. A significant technical threshold has been crossed: the share price has moved back above its 50-day moving average, which currently stands at €157.61. For technically-oriented investors, this breach represents an initial sign of a potential short-term trend reversal.
However, the longer-term perspective remains demanding. The considerable gap to the 200-day moving average, situated around €174, underscores that a sustained recovery is not yet assured. Pre-earnings nervousness is palpable, especially as the stock continues to trade well below its 52-week high of nearly €247, despite the recent uptick.
The 2026 Guidance Will Be Pivotal
The most critical market catalyst is scheduled for early March. Share buybacks alone are unlikely to fuel a lasting rally; the primary driver will be the company’s financial forecast for the upcoming 2026 fiscal year. Should Adidas deliver an encouraging outlook and manage to propel the share price above the 200-day line, the recent consolidation could mark a definitive base. Conversely, a disappointing forecast would likely put the recent support level near €157 under immediate pressure.
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