Carter's, Inc. Reports 23% Revenue Growth in Q2 2026

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2▲1 ▼0Impact / 5
Summary · why it matters

Carter's, Inc. reported a 23% increase in revenue for the second quarter of 2026, driven by broad-based performance across business lines and prior investments in technology and AI. Organic growth improved to 5% from 1% in the prior year, with management targeting double-digit organic growth in the second half of 2026 through expanded cross-selling. The Enterprise Payroll Tax platform reached a milestone with 2 million employees from Vensure Employer Solutions now live on the system, and the AsureCentral platform hosts a majority of the company's 30,000 direct clients. Full-year 2026 revenue guidance is set at $159 million to $163 million, while medium-term targets remain at $180 million to $200 million in revenue with adjusted EBITDA margins of 30% or better. Management noted a shift in revenue mix as the Lathem acquisition transitions to a Hardware-as-a-Service model, creating a $600,000 headwind in early 2027 but improving long-term recurring value.

Impact on assets 2

Consumer Discretionary▲ · 1 stocks
Carter’s Inc
CRI
▲ PositiveCapitalrelevance

Reports 23% revenue growth and raises full-year guidance.

Artificial Intelligence▲ · 1 stocks

Off-coverage companies 2

Vensure Employer SolutionsPrivate▲ Positive
Demandrelevance

Vensure Employer Solutions' 2 million employees now live on the platform, driving adoption.

Lathem Time CorporationPrivate± Mixed
Capitalrelevance

Lathem acquisition shifts to Hardware-as-a-Service, creating a headwind but improving long-term value.

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