VF Corporation (NYSE:VFC) shares rallied in premarket trading on Wednesday after the owner of Vans delivered better-than-expected third-quarter results and signalled improving profitability and cash generation heading into 2026.
The group reported third-quarter earnings of $0.58 per share, comfortably ahead of analysts’ expectations of $0.45. Revenue reached $2.88 billion for the period, representing 2% growth at constant exchange rates and exceeding the consensus forecast of $2.75 billion.
VF Corp shares were up around 6% in premarket trading by 06:15 ET.
Margins also showed improvement. Adjusted gross margin edged up to 57%, an increase of 10 basis points year on year, while operating margin rose 30 basis points to 12.1%. Operating income climbed to $341 million, compared with $318 million in the same quarter last year.
Looking ahead to the fourth quarter of fiscal 2026, VF Corp said it expects revenue to range from flat to up 2% versus the prior year, with adjusted operating income forecast between $10 million and $30 million.
For the full 2026 fiscal year, the company guided for higher free cash flow, adjusted operating income and operating cash flow compared with the previous year, reinforcing management’s confidence in its ongoing turnaround efforts.