Gildan Activewear (NYSE:GIL) Releases Earnings Results, Beats Expectations By $0.02 EPS

Gildan Activewear (NYSE:GIL) (TSE:GIL) announced its earnings results on Thursday. The textile maker reported $0.96 EPS for the quarter, beating the consensus estimate of $0.94 by $0.02, Briefing.com reports. Gildan Activewear had a return on equity of 35.53% and a net margin of 14.13%.The business had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same period in the prior year, the business posted $0.83 earnings per share. Gildan Activewear’s revenue was up 31.1% compared to the same quarter last year. Gildan Activewear updated its FY 2026 guidance to 4.200-4.400 EPS.

Here are the key takeaways from Gildan Activewear’s conference call:

• Gildan completed the acquisition of HanesBrands (Dec 1, 2025) and says integration is progressing ahead of plan, raising expected run‑rate cost synergies to $250 million over three years (about $100M in 2026, $100M in 2027 and $50M in 2028).
• Reported record 2025 continuing‑operations results with roughly $3.6 billion of revenue, a 21.5% adjusted operating margin and adjusted diluted EPS of $3.51 (up ~17% year‑over‑year).
• To capture synergies faster, Gildan will close two Hanes textile factories and relocate production into its network, creating short‑term capacity tightness and a planned temporary reduction of inventory in customer channels that will pressure Q1 sales and margins (Q1 adjusted operating margin guided to ~12.9%).
• 2026 continuing‑operations guidance: revenue of $6.0–$6.2 billion, adjusted operating margin ~20%, adjusted diluted EPS of $4.20–$4.40, CapEx ~3% of sales and free cash flow above $850 million; the Hanes Australia unit (HAA) is held for sale with proceeds targeted to accelerate deleveraging toward a 1.5x–2.5x net‑debt/EBITDA target.
• Longer‑term capacity and cost plan includes advancing Phase Two of the Bangladesh textile complex (construction over ~18 months, production late‑2027) and other manufacturing/IT/distribution harmonization efforts intended to reinforce Gildan’s low‑cost, vertically integrated platform.

Gildan Activewear Stock Down 4.6%

GIL stock traded down $3.26 during trading hours on Thursday, hitting $68.02. The company’s stock had a trading volume of 2,269,422 shares, compared to its average volume of 1,177,172. The stock has a 50 day moving average price of $66.48 and a two-hundred day moving average price of $60.55. Gildan Activewear has a 12 month low of $37.16 and a 12 month high of $73.69. The company has a market capitalization of $12.60 billion, a PE ratio of 21.73 and a beta of 1.08. The company has a quick ratio of 0.88, a current ratio of 2.01 and a debt-to-equity ratio of 0.94.

Institutional Investors Weigh In On Gildan Activewear

A number of large investors have recently bought and sold shares of the business. AQR Capital Management LLC raised its holdings in Gildan Activewear by 49.3% during the first quarter. AQR Capital Management LLC now owns 13,209 shares of the textile maker’s stock valued at $584,000 after buying an additional 4,360 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Gildan Activewear by 40.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,760,253 shares of the textile maker’s stock valued at $77,838,000 after acquiring an additional 503,359 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Gildan Activewear by 2.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 186,585 shares of the textile maker’s stock worth $8,251,000 after purchasing an additional 4,714 shares during the period. Cetera Investment Advisers grew its holdings in Gildan Activewear by 2.1% during the second quarter. Cetera Investment Advisers now owns 12,510 shares of the textile maker’s stock valued at $616,000 after purchasing an additional 259 shares during the last quarter. Finally, Prudential Financial Inc. bought a new position in shares of Gildan Activewear in the second quarter valued at approximately $317,000. 82.83% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

GIL has been the subject of several research analyst reports. Stifel Nicolaus upped their price target on shares of Gildan Activewear from $75.00 to $80.00 and gave the company a “buy” rating in a research report on Monday. Barclays restated an “overweight” rating and issued a $70.00 target price (up from $64.00) on shares of Gildan Activewear in a report on Thursday, October 30th. TD Securities reissued a “buy” rating and set a $77.00 price target on shares of Gildan Activewear in a research report on Tuesday, January 27th. Scotiabank restated an “outperform” rating on shares of Gildan Activewear in a research report on Tuesday, February 3rd. Finally, Canadian Imperial Bank of Commerce reissued an “outperform” rating and issued a $79.00 price target on shares of Gildan Activewear in a research report on Friday, February 20th. Thirteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $80.00.

Trending Headlines about Gildan Activewear

Here are the key news stories impacting Gildan Activewear this week:

• Positive Sentiment: Beat on Q4 revenue and EPS; revenue rose ~31% year-over-year and adjusted EPS of $0.96 beat consensus, with HanesBrands contributing for December — this supports longer-term scale and top-line growth. GlobeNewswire Release
• Positive Sentiment: Management raised targeted run‑rate synergies from the Hanes acquisition and announced plans to expand capacity (Bangladesh Phase 2), which could improve margins over time. Yahoo Finance
• Neutral Sentiment: HanesBrands’ Australian business has been classified as held for sale and reported as discontinued operations, a bookkeeping/portfolio move with limited near-term cash impact but worth monitoring. GlobeNewswire Release
• Negative Sentiment: FY‑2026 EPS guidance of $4.20–$4.40 was below the street (~$4.46 consensus), and multiple headlines flagged the “lower‑than‑expected” targets — the guidance miss is the primary driver of the share decline. MSN / MarketWatch Coverage
• Negative Sentiment: Zacks lowered its rating to a “strong sell,” adding short‑term negative analyst pressure and likely amplifying the selloff. Zacks

About Gildan Activewear

Gildan Activewear Inc (NYSE:GIL) is a vertically integrated manufacturer and wholesaler of branded basic apparel, including activewear, socks, hosiery and underwear. Headquartered in Montreal, Quebec, the company produces a wide range of products such as T-shirts, fleece garments, sport shirts, performance wear, and shapewear under its Gildan, Anvil, Comfort Colors, Gold Toe, Peds and Silks brands. Leveraging its in-house knitting, dyeing, cut-and-sew and finishing operations, Gildan supplies blank apparel to screen printers, promotional product distributors and major retailers around the world.

Since its founding in 1984 by Glenn J.