VF Corporation (NYSE: VFC) saw its shares fall more than 8% intraday despite reporting stronger-than-expected third-quarter results and highlighting improving profitability and cash flow trends for fiscal 2026.

The company posted third-quarter earnings of $0.58 per share, exceeding analyst expectations of $0.45. Revenue totaled $2.88 billion, up 2% in constant currency and above the consensus estimate of $2.75 billion.

Adjusted gross margin increased to 57%, up 10 basis points from a year earlier, while operating margin expanded 30 basis points to 12.1%. Operating income rose to $341 million from $318 million in the prior-year quarter.

For the fourth quarter of fiscal 2026, VF Corporation projected revenue ranging from flat to up 2% year over year, with adjusted operating income expected between $10 million and $30 million. For the full fiscal year, the company forecast higher free cash flow, adjusted operating income, and operating cash flow compared with the prior year.