Levi’s (NYSE:LEVI) Q4 CY2025 Revenue Surpasses Expectations

Levi's Surpasses Q4 2025 Revenue Forecasts

Levi's (NYSE:LEVI), the well-known denim brand, exceeded analysts’ revenue projections for the fourth quarter of calendar year 2025, posting $1.77 billion in sales. While this figure matched last year’s performance, it still represented a 3.4% beat over Wall Street expectations. The company also reported non-GAAP earnings of $0.41 per share, coming in 4.6% above consensus estimates.

Is this a good moment to invest in Levi's?

Q4 2025 Performance Highlights

• Revenue: $1.77 billion, surpassing analyst expectations of $1.71 billion (flat year-over-year, 3.4% above forecast)
• Adjusted EPS: $0.41, exceeding the $0.39 estimate (4.6% beat)
• Adjusted EBITDA: $268.2 million, nearly matching the $268.3 million estimate (15.2% margin)
• 2026 Adjusted EPS Guidance: Midpoint at $1.43, which is 3.4% below analyst projections
• Operating Margin: 11.9%, consistent with the prior year’s quarter
• Free Cash Flow Margin: 12.2%, down from 13.2% a year ago
• Constant Currency Revenue: Increased 5% year-over-year (compared to 7% in the same period last year)
• Market Cap: $8.31 billion

About Levi's

Founded in 1873 and credited with creating the original blue jeans, Levi's (NYSE:LEVI) is a leading apparel company celebrated for its signature denim and timeless American fashion.

Analysis of Revenue Trends

Evaluating a company’s long-term sales trajectory offers valuable perspective on its overall strength. While any business can deliver strong results in the short term, sustained growth is a hallmark of enduring companies. Over the past five years, Levi's has posted an annualized revenue increase of just 7.1%, which is considered weak for the consumer discretionary sector and sets a low bar for further analysis.

Levi's Quarterly Revenue

At StockStory, we prioritize long-term growth, but in the consumer discretionary space, focusing solely on the past can overlook companies benefiting from recent product launches or trends. Levi’s recent results indicate a slowdown in demand, as revenue has remained unchanged over the last two years.

Levi's Year-On-Year Revenue Growth

The company also reports sales figures excluding currency fluctuations, which are outside management’s control and don’t reflect underlying demand. Over the last two years, Levi’s constant currency revenue has averaged 5% annual growth, suggesting that unfavorable exchange rates have negatively impacted reported results.

Levi's Constant Currency Revenue Growth

This quarter, Levi’s generated $1.77 billion in revenue, flat compared to the previous year but 3.4% ahead of analyst forecasts.

Looking forward, analysts anticipate Levi’s revenue will rise by 4.3% over the next year. While this points to some momentum from new offerings, it remains below the sector average.

The 1999 book Gorilla Game predicted the dominance of Microsoft and Apple in tech by identifying early platform leaders. Today, enterprise software firms integrating generative AI are emerging as the new industry giants.

Operating Margin Overview

Levi’s operating margin has improved over the past year, averaging 7.7% over the last two years. While this reflects better efficiency, the company’s cost structure still limits its profitability compared to other consumer discretionary businesses.

Levi's Trailing 12-Month Operating Margin (GAAP)

For Q4, Levi’s posted an operating margin of 11.9%, matching the same period last year and indicating stable cost management.

Earnings Per Share (EPS) Performance

While revenue growth shows how a company expands, long-term changes in earnings per share (EPS) reveal whether that growth is profitable. For instance, sales can be boosted by heavy spending on marketing, which may not translate to sustainable profits.

Levi’s has achieved an impressive 46.5% compound annual growth rate in EPS over the past five years, outpacing its 7.1% annualized revenue growth. This suggests the company has become more profitable on a per-share basis as it has grown.

Levi's Trailing 12-Month EPS (Non-GAAP)

In the fourth quarter, Levi’s reported adjusted EPS of $0.41, down from $0.50 a year earlier, but still 4.6% above analyst expectations. Wall Street projects full-year EPS to reach $1.35 over the next 12 months, representing 9.1% growth.

Summary of Levi’s Q4 Results

Levi’s delivered a strong beat on constant currency revenue this quarter and exceeded overall revenue expectations. However, its full-year EPS guidance fell short of forecasts. While there were several positive aspects to the report, the market appeared to expect more, with shares dropping 1% to $20.25 following the announcement.

Should you consider investing in Levi's now? Before making a decision, it’s important to weigh valuation, business fundamentals, and the latest financial results.