Zacks Research Has Optimistic Outlook of AEO FY2026 Earnings

American Eagle Outfitters, Inc. (NYSE:AEO) – Zacks Research lifted their FY2026 earnings estimates for American Eagle Outfitters in a research note issued to investors on Friday, February 6th. Zacks Research analyst Team now anticipates that the apparel retailer will post earnings of $1.38 per share for the year, up from their prior estimate of $1.33. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for American Eagle Outfitters’ current full-year earnings is $1.70 per share. Zacks Research also issued estimates for American Eagle Outfitters’ Q4 2026 earnings at $0.69 EPS, Q3 2027 earnings at $0.48 EPS, Q4 2027 earnings at $0.72 EPS, FY2027 earnings at $1.63 EPS, Q3 2028 earnings at $0.50 EPS, Q4 2028 earnings at $0.74 EPS and FY2028 earnings at $1.70 EPS.

Other analysts also recently issued reports about the company. JPMorgan Chase & Co. upgraded American Eagle Outfitters from an “underweight” rating to a “neutral” rating and upped their price objective for the company from $14.00 to $20.00 in a research report on Wednesday, December 3rd. Morgan Stanley set a $23.00 target price on shares of American Eagle Outfitters in a research note on Wednesday, December 3rd. TD Cowen reaffirmed a “hold” rating on shares of American Eagle Outfitters in a research note on Wednesday, December 3rd. The Goldman Sachs Group initiated coverage on shares of American Eagle Outfitters in a research report on Thursday, December 11th. They issued a “neutral” rating and a $25.00 price objective for the company. Finally, Bank of America raised their target price on shares of American Eagle Outfitters from $11.00 to $18.00 and gave the stock an “underperform” rating in a research report on Wednesday, December 3rd. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $22.45.

American Eagle Outfitters Price Performance

AEO stock opened at $23.75 on Monday. The stock’s 50 day moving average price is $25.32 and its 200 day moving average price is $19.16. The firm has a market cap of $4.03 billion, a P/E ratio of 20.47, a PEG ratio of 6.22 and a beta of 1.42. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.59 and a current ratio of 1.63. American Eagle Outfitters has a 1 year low of $9.27 and a 1 year high of $28.46.

American Eagle Outfitters (NYSE:AEO) last released its quarterly earnings results on Tuesday, December 2nd. The apparel retailer reported $0.53 EPS for the quarter, beating the consensus estimate of $0.43 by $0.10. American Eagle Outfitters had a net margin of 3.90% and a return on equity of 13.82%. The business had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.32 billion. During the same period in the prior year, the business earned $0.48 earnings per share. The company’s quarterly revenue was up 2.9% on a year-over-year basis.

American Eagle Outfitters Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, January 23rd. Investors of record on Friday, January 9th were issued a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date was Friday, January 9th. American Eagle Outfitters’s payout ratio is presently 43.10%.

Insider Buying and Selling

In other American Eagle Outfitters news, insider Jennifer M. Foyle sold 243,047 shares of the stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $24.30, for a total transaction of $5,906,042.10. Following the transaction, the insider owned 191,751 shares of the company’s stock, valued at $4,659,549.30. This trade represents a 55.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Noel Joseph Spiegel sold 1,896 shares of American Eagle Outfitters stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $25.66, for a total transaction of $48,651.36. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 246,839 shares of company stock valued at $6,004,388. Insiders own 8.70% of the company’s stock.

Institutional Investors Weigh In On American Eagle Outfitters

Several institutional investors and hedge funds have recently added to or reduced their stakes in AEO. Strategic Investment Solutions Inc. IL raised its holdings in shares of American Eagle Outfitters by 50.0% in the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 1,500 shares of the apparel retailer’s stock worth $26,000 after purchasing an additional 500 shares during the period. Raymond James Financial Inc. acquired a new stake in American Eagle Outfitters during the 2nd quarter worth approximately $35,000. Strs Ohio purchased a new position in American Eagle Outfitters in the third quarter valued at approximately $36,000. Federated Hermes Inc. lifted its position in American Eagle Outfitters by 151.0% during the second quarter. Federated Hermes Inc. now owns 3,848 shares of the apparel retailer’s stock valued at $37,000 after buying an additional 2,315 shares in the last quarter. Finally, McIlrath & Eck LLC acquired a new position in American Eagle Outfitters during the third quarter valued at approximately $39,000. 97.33% of the stock is currently owned by institutional investors and hedge funds.

American Eagle Outfitters News Roundup

Here are the key news stories impacting American Eagle Outfitters this week:

• Positive Sentiment: Zacks Research sharply raised AEO’s near- and medium-term EPS forecasts (multiple upgrades across Q4 2026–Q4 2028, FY2026–FY2028) and maintains a “Strong‑Buy” view — this lifts earnings expectations and supports a higher valuation for the stock.
• Positive Sentiment: American Eagle says it’s refocusing on core retail initiatives, expanding its “Creators” strategy and partnering with Stord for logistics — moves that aim to drive sales growth, improve inventory flow and lower fulfillment costs, which investors see as operationally constructive. Article Title
• Neutral Sentiment: Barron’s stock-grader page for AEO is updated (general score/metrics resource) — useful for reference but does not itself drive an immediate catalyst. Article Title

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc (NYSE: AEO) is a leading American specialty retailer offering apparel, accessories and personal care products for men and women. The company’s flagship brand, American Eagle, focuses on casualwear including denim, tops, outerwear and accessories targeted primarily at teens and young adults. In addition to its core apparel lines, the company operates the Aerie brand of intimates, loungewear and swimwear, which has gained recognition for its body-positive marketing and inclusive sizing.

American Eagle Outfitters conducts business through a combination of over 900 brick-and-mortar stores in North America and Greater China, complemented by a growing e-commerce platform that serves customers around the globe.