Callaway Golf has increased its full-year financial guidance after delivering stronger-than-expected second-quarter results, with growth in golf equipment sales, expanding market share and improved profitability reinforcing confidence in the company’s position as a focused, pure-play golf business.
The company reported adjusted earnings of $0.39 per share for the second quarter of 2026, comfortably ahead of analyst expectations of $0.35 per share and up from $0.24 during the same period last year. Revenue increased 2% year-on-year to $612.2 million, also surpassing market forecasts, while first-half sales were up 6%.
Callaway attributed the improved performance to strong demand across its core golf equipment categories following the company’s transformation into a dedicated golf business after recent divestitures.
Golf balls were among the standout performers, with quarterly revenue rising 15%. The company also continued to strengthen its position in the highly competitive equipment market, reporting a year-to-date 25% share of the US driver market, an increase of 110 basis points, while total wood market share also reached around 25%, up 120 basis points. In golf balls, US market share climbed to more than 23% in June, representing a record high and a year-on-year improvement of 250 basis points.
Beyond equipment, apparel brand TravisMathew also delivered a better-than-expected performance. Management said its women’s range continues to gain momentum, while changes to the men’s merchandising strategy are producing encouraging early results. As part of an ongoing focus on profitability, the company plans to close four underperforming TravisMathew retail stores during the fourth quarter.
Reflecting its confidence in the business, Callaway has raised its full-year 2026 outlook. The company now expects adjusted EBITDA of between $246 million and $260 million, representing an increase of $31 million at the midpoint of previous guidance. Full-year revenue is now forecast to reach between $2.045 billion and $2.07 billion.
While third-quarter sales are expected to soften due to fewer product launches, tougher year-on-year comparisons and foreign exchange headwinds, management expects gross margins to continue improving through the second half of the year. The company also reduced its projected tariff costs for 2026 to approximately $43 million following lower-than-anticipated tariff rates and refund activity.
Chief Executive Chip Brewer said the latest results demonstrate the strength of Callaway’s repositioned business.
“We are building momentum as a focused, pure-play golf company, and our performance reflects healthy market conditions, strong product acceptance, meaningful gross margin improvement, and disciplined execution across the business,” Brewer said.
He added that recent strategic moves have restored Callaway to a cash-generating business with a strong balance sheet and a clear strategy for returning value to shareholders.
The company expects to finish 2026 in a net cash leverage position and intends to continue returning capital through its existing $200 million share buyback programme. Although Callaway’s shares dipped in after-hours trading following the earnings announcement, the stock remains close to its 52-week high, underlining investor confidence in the company’s long-term growth prospects.