Crocs $CROX ( ▼ 1.61% ) shares are ripping higher after the footwear company delivered a fourth quarter that beat every analyst projection on both revenue and earnings. The results were strong enough to send the stock up double digits in premarket trading.
Management did not just clear the bar. They raised it.
Q4 Walks All Over Estimates
Crocs reported $957.6 million in Q4 revenue, well ahead of the $916.9 million analysts were expecting. Adjusted EPS came in at $2.29 versus consensus estimates of $1.92.
The strength capped off a year where the core Crocs brand continued to show resilience despite broader consumer softness in parts of retail.
2026 Guidance Stuns Wall Street
For the full year, management guided adjusted EPS between $12.88 and $13.35. The highest estimate among analysts was just $12.62, with the average closer to $12.02.
Full year revenue is expected to be roughly flat to slightly down, a much better outlook than Wall Street had penciled in. Investors appear to be rewarding the earnings power and margin discipline even if top line growth slows.
HeyDude Remains the Weak Spot
The one drag on the story is HeyDude. Quarterly sales for the brand fell 17% year over year, with wholesale revenue plunging more than 40% while direct to consumer sales were flat.
Management expects HeyDude revenue to decline another 7% to 9% this year, making it clear that Crocs $CROX will lean heavily on its flagship brand to drive performance.
For now, investors seem willing to look past the HeyDude headwinds given how decisively Crocs outperformed expectations on both Q4 results and 2026 earnings guidance.