EL7.AI
StocksMediumUpdated•Originally published 4 September 2026•Updated 4 September 2026•
2 min read

Smith & Wesson Brands (SWBI) Stock Jumps 12.22% After Fiscal Q1 Earnings and Revenue Beat Expectations

Key Facts

1Smith & Wesson Brands (SWBI) stock jumped 12.22% to $13.77 after hours after closing the regular session at $12.27, down 3.99%.
2Revenue reached $112.6 million, up 32.3% year over year, versus a $98.7 million estimate, a 14.1% beat.
3Earnings per share were $0.06 versus an expected loss of $0.05, while net income was $2.6 million.
4Gross margin rose to 28.7% from 25.9%, aided by a non-recurring $2.9 million benefit that added about 260 basis points.
5Management expects roughly 10% second-quarter sales growth and 5% to 7% fiscal 2027 revenue growth.

Smith & Wesson Brands (SWBI) stock jumped 12.22% to $13.77 in after-hours trading on September 3, 2026, after fiscal 2027 first-quarter earnings and revenue exceeded analyst expectations. The stock had closed the regular session at $12.27, down 3.99%.

Revenue was $112.6 million, versus analysts’ estimates of $98.7 million, representing a 14.1% beat. Revenue increased 32.3% year over year in the quarter ended July 31, 2026.

Earnings per share were $0.06, while analysts had expected a loss of $0.05 per share. The company recorded GAAP net income of $2.6 million, compared with a loss of $3.4 million, or a loss of $0.08 per share, a year earlier.

Gross margin increased to 28.7% from 25.9%. However, a $2.9 million tariff refund added about 260 basis points and was a non-recurring benefit; excluding that effect, gross margin was 26.1%.

Non-GAAP adjusted EBITDAS reached $13.8 million, or 12.2% of sales, compared with $7.4 million and 8.7% a year earlier. Operating income swung to a $4.2 million profit from an approximately $3.0 million loss.

Handgun shipments totaled 191,000 units, up 18.6%, while long-gun shipments reached 33,000 units, up 26.9%. Newly introduced products accounted for 35.3% of total quarterly sales.

Inventories increased by $24.4 million between April 30 and July 31, 2026. The company expects them to continue building through fiscal 2027’s second quarter and decline thereafter, while fiscal-year capital spending is projected at $45 million to $50 million.

Management expects second-quarter sales to increase roughly 10% year over year and maintained its forecast for fiscal 2027 revenue growth of 5% to 7%. It also authorized a quarterly dividend of $0.13 per share for shareholders of record on September 17, 2026, payable October 1, 2026.

For investors, the next test is delivering the projected roughly 10% sales growth and sustaining margins after the non-recurring 260-basis-point benefit disappears. The quality of growth and margins therefore matters alongside the headline revenue increase.