diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -3711,6 +3711,13 @@ def outgoing(ui, repo, dest=None, **opts
 
     Returns 0 if there are outgoing changes, 1 otherwise.
     """
+    # hg._outgoing() needs to re-resolve the path in order to handle #branch
+    # style URLs, so don't overwrite dest.
+    path = ui.paths.getpath(dest, default=('default-push', 'default'))
+    if not path:
+        raise error.Abort(_('default repository not configured!'),
+                          hint=_("see 'hg help config.paths'"))
+
     opts = pycompat.byteskwargs(opts)
     if opts.get('graph'):
         logcmdutil.checkunsupportedgraphflags([], opts)
@@ -3728,7 +3735,7 @@ def outgoing(ui, repo, dest=None, **opts
         return 0
 
     if opts.get('bookmarks'):
-        dest = ui.expandpath(dest or 'default-push', dest or 'default')
+        dest = path.pushloc or path.loc
         dest, branches = hg.parseurl(dest, opts.get('branch'))
         other = hg.peer(repo, opts, dest)
         if 'bookmarks' not in other.listkeys('namespaces'):
@@ -3738,7 +3745,7 @@ def outgoing(ui, repo, dest=None, **opts
         ui.pager('outgoing')
         return bookmarks.outgoing(ui, repo, other)
 
-    repo._subtoppath = ui.expandpath(dest or 'default-push', dest or 'default')
+    repo._subtoppath = path.pushloc or path.loc
     try:
         return hg.outgoing(ui, repo, dest, opts)
     finally:
diff --git a/tests/test-ssh.t b/tests/test-ssh.t
--- a/tests/test-ssh.t
+++ b/tests/test-ssh.t
@@ -230,7 +230,7 @@ test pushkeys and bookmarks
   namespaces	
   phases	
   $ hg book foo -r 0
-  $ hg out -B
+  $ hg out -B --config paths.default=bogus://invalid --config paths.default:pushurl=`hg paths default`
   comparing with ssh://user@dummy/remote
   searching for changed bookmarks
      foo                       1160648e36ce
diff --git a/tests/test-subrepo-relative-path.t b/tests/test-subrepo-relative-path.t
--- a/tests/test-subrepo-relative-path.t
+++ b/tests/test-subrepo-relative-path.t
@@ -56,6 +56,30 @@ Clone main from hgweb
   new changesets 863c1745b441
   3 files updated, 0 files merged, 0 files removed, 0 files unresolved
 
+Ensure that subrepos pay attention to default:pushurl
+
+  $ cat > cloned/.hg/hgrc << EOF
+  > [paths]
+  > default:pushurl = http://localhost:$HGPORT/main
+  > EOF
+
+  $ hg -R cloned out -S --config paths.default=bogus://invalid
+  comparing with http://localhost:$HGPORT/main
+  searching for changes
+  no changes found
+  comparing with http://localhost:$HGPORT/sub
+  searching for changes
+  no changes found
+  [1]
+
+  $ hg -R cloned push --config paths.default=bogus://invalid
+  pushing to http://localhost:$HGPORT/main
+  no changes made to subrepo sub since last push to http://localhost:$HGPORT/sub
+  searching for changes
+  no changes found
+  abort: HTTP Error 403: ssl required
+  [255]
+
 Checking cloned repo ids
 
   $ hg id -R cloned