Crocs raises 2026 outlook as HeyDude returns to growth

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Crocs raises 2026 outlook

Highlights

Crocs raised 2026 sales growth guidance to 3% and adjusted EPS to $14.45–$14.65 after reporting Q3 revenue of $1.04 billion, up 4.6%.
HeyDude brand returned to growth with third-quarter revenue up 6.1% year on year, driven by stronger wholesale demand and product diversification.
International revenue for Crocs brand rose 11.8% year on year, led by China, India, and Japan, with analysts citing product innovation and digital engagement as key drivers.

Third-quarter results and growth drivers

As reported by CNBC, Crocs posted third-quarter adjusted earnings of $3.69 per share on revenue of $1.04 billion, up 26.4% and 4.6% respectively from a year earlier, while management raised its 2026 guidance for both sales and earnings.

The company now expects full-year revenue to rise 3% from 2025, compared with prior guidance for a 1% to 2% increase. Its adjusted EPS forecast rises to $14.45 to $14.65 from a previous range of $13.70 to $14.00.

HeyDude is a key part of that improvement. After several years of declines, the brand returns to growth with third-quarter revenue up 6.1% year on year, helped by stronger wholesale demand and broader product diversification, according to analysts cited in the report.

International expansion and valuation outlook

Crocs brand international revenue rises 11.8% year on year, ahead of Street estimates of 6.6%, with China, India and Japan performing well. Analysts describe the international business as the company’s main growth engine, supported by product innovation and digital engagement.

Chief Executive Andrew Rees says Crocs benefits from early moves in social selling, including on Douyin in China and TikTok Shop in the U.S. He also points to affordable pricing, with many products in the $50 to $70 range, and strong consumer response to newer styles such as ballet flats offered in multiple colors, prints and customizable options.

Analysts also see room for further gains in the stock. Crocs trades at under 10 times forward earnings, and Williams Trading says there could be additional upside to guidance because about 500,000 shares repurchased between the end of the third quarter of 2026 and October are not reflected in the company’s outlook.

In our earlier coverage of Wipro’s second-quarter results, we noted that the company beat revenue expectations as European client spending began to recover after a period of cautious tech budgets. We also highlighted how artificial intelligence services are starting to open up new revenue streams for major Indian IT providers alongside traditional outsourcing work.

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