10-Q · July 8, 2026
Levi Strauss reported a solid performance for Q2 2026, with revenue increasing 8.0% to $1.56 billion, outpacing expectations. Diluted EPS rose to $0.24, reflecting stronger gross profit despite elevated SG&A costs. Both…
Earnings analysis · 10-Q
LEVI earnings analysis
Filed October 7, 2026 · Our reading of the company's report
The latest report
Levi Strauss reported $1.56 billion of Q3 revenue, up approximately 1.3% year over year but below the $1.615 billion consensus estimate. Gross margin was stable at 62.7%, but operating margin declined to 7.8% and EPS…
Read full summary
Levi Strauss reported $1.56 billion of Q3 revenue, up approximately 1.3% year over year but below the $1.615 billion consensus estimate. Gross margin was stable at 62.7%, but operating margin declined to 7.8% and EPS fell to $0.22, producing a $0.14 EPS miss. Free cash flow improved sharply to $231 million from negative $39 million a year earlier, but the earnings miss and profitability deterioration outweigh the cash-flow improvement. No quantitative guidance or material risk-factor changes were disclosed in the provided 10-Q text.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.22
What stood out
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Revenue grew modestly but missed estimates
Revenue was $1.56 billion, approximately flat versus $1.56 billion in Q2 2026 and up from $1.54 billion in Q3 2025. Revenue was approximately $55.3 million below the $1.615 billion consensus estimate.
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Gross margin remained resilient
Gross margin improved to 62.7%, up 1.0 percentage point from 61.7% in Q3 2025 and from 62.7% in Q2 2026, according to the supplied quarterly history.
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Cash generation improved year over year
Free cash flow was $231 million, compared with $231 million in Q2 2026 and negative $39 million in Q3 2025, indicating substantially stronger cash generation year over year.
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Share repurchases continued
The company repurchased and retired 1,591,566 shares in Q3 at an average price of $21.32, completing the settlement of its $200.0 million 2026 accelerated share repurchase agreement.
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No reported control deficiencies
Disclosure controls were concluded effective at a reasonable assurance level as of August 30, 2026, and the filing reported no changes in internal control that materially affected, or were reasonably likely to materially affect, reporting.
What to watch
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Operating profitability and EPS declined
Operating margin fell to 7.8% from 11.4% in Q1 2026 and 10.8% in Q3 2025, while EPS declined to $0.22 from $0.45 in Q1 2026 and $0.55 in Q3 2025. EPS was $0.14 below the $0.36 consensus estimate.
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Top-line performance missed expectations
The company’s $1.56 billion of revenue was approximately $55.3 million below the $1.615 billion consensus estimate, signaling weaker-than-expected top-line momentum despite approximately 1.3% year-over-year growth from $1.54 billion.
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Capital allocation reduces liquidity flexibility
The company deployed $200.0 million under its 2026 accelerated share repurchase agreement and retained $240.4 million of repurchase authority as of September 30, 2026. This represents a material use of capital that could reduce flexibility if operating conditions weaken.
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No new formal risk-factor changes
The 10-Q states there were no material changes to previously reported risk factors, so no new risk-factor disclosures were identified versus the November 30, 2025 10-K.
Management's outlook
The provided 10-Q text contains no quantitative revenue or EPS outlook. No explicit guidance change was disclosed; quantitative outlook may be addressed in the earnings release or conference call.
Earlier filings 4
10-Q · April 7, 2026
Levi Strauss reported a strong Q1 with net revenues of $1,742.5 million (up $215.7 million vs $1,526.8 million a year ago) and diluted net income per share of $0.45 (vs $0.34 prior year). Operating income was $198.7…
10-Q · June 26, 2024
Levi Strauss reported Q2 net revenues of $1,441.2 million (up from $1,336.8 million a year ago) and delivered a return to profitability with net income of $18.0 million and diluted EPS of $0.04 for the quarter. Gross…
10-Q · April 3, 2024
Levi Strauss reported Q1 net revenues of $1,557.6 million and a net loss of $10.6 million, driven by $116.2 million of restructuring charges tied to a new multi‑year productivity program. Gross profit was $906.5 million…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.