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Golf entertainment and gear company Callaway Golf Company (NYSE: CALY<\/a>) announced better-than-expected revenue in Q2 CY2026, with sales up 2% year on year to $612.2 million. On the other hand, next quarter\u2019s revenue guidance of $425 million was less impressive, coming in 0.8% below analysts\u2019 estimates. Its non-GAAP profit of $0.39 per share was 10% above analysts\u2019 consensus estimates. <\/p>\n Is now the time to buy Callaway Golf Company? Find out by accessing our full research report, it\u2019s free<\/a>. <\/p>\n Callaway Golf Company (CALY) Q2 CY2026 Highlights:Revenue: $612.2 million vs analyst estimates of $604.3 million (2% year-on-year growth, 1.3% beat)Adjusted EPS: $0.39 vs analyst estimates of $0.35 (10% beat)Adjusted EBITDA: $124.9 million vs analyst estimates of $105.2 million (20.4% margin, 18.7% beat)The company slightly lifted its revenue guidance for the full year to $2.06 billion at the midpoint from $2.04 billion EBITDA guidance for the full year is $253 million at the midpoint, above analyst estimates of $229.5 millionOperating Margin: 18.8%, up from 12.4% in the same quarter last yearFree Cash Flow Margin: 38.9%, up from 8.7% in the same quarter last yearMarket Capitalization: $3.43 billion<\/p>\n “We are very pleased with our second quarter results with our revenue growth, gross margin improvement and Adjusted EBITDA all exceeding expectations,” commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company.<\/p>\n Company Overview<\/p>\n Formed between the merger of Callaway and Topgolf, Callaway Golf Company (NYSE: CALY<\/a>) sells golf equipment and operates technology-driven golf entertainment venues.\n<\/p>\n Revenue Growth<\/p>\n Examining a company\u2019s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Callaway Golf Company struggled to consistently generate demand over the last five years as its sales dropped at a 2.5% annual rate. This was below our standards and is a sign of poor business quality. <\/p>\n Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Callaway Golf Company\u2019s recent performance shows its demand remained suppressed as its revenue has declined by 18.3% annually over the last two years. Note that COVID hurt Callaway Golf Company\u2019s business in 2020 and part of 2021, and it bounced back in a big way thereafter. This quarter, Callaway Golf Company reported modest year-on-year revenue growth of 2% but beat Wall Street\u2019s estimates by 1.3%. Company management is currently guiding for a 8.1% year-on-year decline in sales next quarter. <\/p>\n Looking further ahead, sell-side analysts expect revenue to decline by 1% over the next 12 months. While this projection is better than its two-year trend, it\u2019s hard to get excited about a company that is struggling with demand. <\/p>\n ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who\u2019s building AI, one company is already using it to print money. And nobody\u2019s paying attention.<\/p>\n AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won\u2019t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice<\/a>.<\/p>\n Operating Margin<\/p>\n Callaway Golf Company\u2019s operating margin has more or less stayed the same over the last 12 months , and we generally like to see margin increases due to economies of scale and cost efficiency over time. <\/p>\n In Q2, Callaway Golf Company generated an operating margin profit margin of 18.8%, up 6.4 percentage points year on year. This increase was a welcome development and shows it was more efficient. <\/p>\n Earnings Per Share<\/p>\n We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company\u2019s growth is profitable. <\/p>\n Sadly for Callaway Golf Company, its EPS declined by 12.3% annually over the last five years, more than its revenue. We can see the difference stemmed from higher interest expenses or taxes as the company actually improved its operating margin and repurchased its shares during this time. <\/p>\n In Q2, Callaway Golf Company reported adjusted EPS of $0.39, up from $0.24 in the same quarter last year. This print easily cleared analysts\u2019 estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Callaway Golf Company\u2019s full-year EPS to grow 16.4% from $0.65 to $0.76. <\/p>\n Key Takeaways from Callaway Golf Company\u2019s Q2 Results<\/p>\n We were impressed by Callaway Golf Company\u2019s optimistic EBITDA guidance for next quarter, which blew past analysts\u2019 expectations. We were also glad its full-year EBITDA guidance trumped Wall Street\u2019s estimates. On the other hand, its full-year revenue guidance was in line. Overall, we think this was still a solid quarter with some key areas of upside. Investors were likely hoping for more, and shares traded down 3.3% to $18.93 immediately after reporting. <\/p>\n![\"Callaway](\"https:\/\/www.europesays.com\/golf\/wp-content\/uploads\/2026\/08\/Callaway-Golf-Company-Quarterly-Revenue_2026-08-04-213220_masp.png\"\/)
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