Filing Flows › Carter's (CRI) › Q3 2026
Carter's (CRI) Q3 2026 earnings results (third quarter 2026)
10-Q filed Oct 30, 2026
Carter's (CRI) reported revenue of $752M for the third quarter 2026 (Q3 2026), -0.7% from a year earlier and +22% from the quarter before. Operating margin was 7.4%, net earnings $36.6M (4.9% of revenue).
Carter's, Q3 2026: revenue $752M (-0.7% year over year), operating margin 7.4%, net earnings $36.6M, operating cash flow −$100M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $752M | +22% | -0.7% |
| Gross profit | $355M | -14% | +4% |
| Operating profit | $55.8M | -60% | +92% |
| Net earnings | $36.6M | -65% | +216% |
| Operating cash flow | −$100M | -151% | — |
What changed
Revenue was $752.5M in Q3 2026, down 1% year over year and up 22% from the previous quarter. U.S. Retail was the largest line at 48% of revenue. U.S. Wholesale lost $10.7M year over year (down 4%), 199% of the total change.
Gross margin was 47.1%, up 2.1 points from Q3 2025. Operating profit was $55.8M, a 7.4% margin (up 3.6 points year over year). Operating expenses fell 4% while revenue fell 1%. Net earnings were $36.6M, up 216% year over year. The effective tax rate was 24.4%.
Operating cash flow was −$100.5M. Non-cash charges added back $11.9M of depreciation and amortization and $3.6M of share-based compensation. Working capital and other items used $152.6M. Capital expenditures of $16.9M exceeded it, leaving free cash flow of −$117.4M.
Questions
What was Carter's revenue in the third quarter 2026?
Carter's (CRI) reported revenue of $752M for the third quarter 2026 (Q3 2026), -0.7% from a year earlier and +22% from the quarter before.
Was Carter's profitable in the third quarter 2026?
Operating profit was $55.8M (7.4% of revenue) and net earnings $36.6M.
Source: Carter's 10-Q on SEC EDGAR.