Filing Flows › Carter's (CRI) › Q2 2026
Carter's (CRI) Q2 2026 earnings results (second quarter 2026)
10-Q filed Jul 31, 2026
Carter's (CRI) reported revenue of $615M for the second quarter 2026 (Q2 2026), +5% from a year earlier and -10% from the quarter before. Operating margin was 22.7%, net earnings $105M (17.1% of revenue).
Carter's, Q2 2026: revenue $615M (+5% year over year), operating margin 22.7%, net earnings $105M, operating cash flow $196M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $615M | -10% | +5% |
| Gross profit | $413M | +40% | +46% |
| Operating profit | $140M | +392% | 35× |
| Net earnings | $105M | +632% | 235× |
| Operating cash flow | $196M | 31× | +386% |
| Free cash flow | $190M | — | +688% |
What changed
Revenue was $615.5M in Q2 2026, up 5% year over year and down 10% from the previous quarter. U.S. Retail was the largest line at 50% of revenue. U.S. Wholesale added $22.6M year over year (up 12%), 75% of the total change.
Gross margin was 67.0%, up 18.9 points from Q2 2025. Operating profit was $139.8M, a 22.7% margin (up 22.0 points year over year). Of the extra revenue versus Q2 2025, 450% reached operating profit, above the 1% margin then. Operating expenses fell 2% while revenue rose 5%. Net earnings were $105.0M, up 23433% year over year. The effective tax rate was 23.2%.
Operating cash flow was $195.9M (up 386% year over year), 187% of net earnings. Non-cash charges added back $12.1M of depreciation and amortization and $3.7M of share-based compensation. Working capital and other items added $75.2M. Capital expenditures of $5.8M left free cash flow of $190.0M.
Questions
What was Carter's revenue in the second quarter 2026?
Carter's (CRI) reported revenue of $615M for the second quarter 2026 (Q2 2026), +5% from a year earlier and -10% from the quarter before.
Was Carter's profitable in the second quarter 2026?
Operating profit was $140M (22.7% of revenue) and net earnings $105M.
Source: Carter's 10-Q on SEC EDGAR.