Polaris Reports Adjusted Earnings of $1.08 per Share, Raises 2026 Outlook After Revenue Grows 11%
Key Facts
Polaris reported adjusted earnings of $1.08 per share and revenue of $2.04 billion for the third quarter on October 27, 2026, beating analyst estimates of $0.59 per share and $1.9 billion in revenue. The earnings-per-share estimate was exceeded by $0.49, according to Investing.com coverage citing Reuters. Revenue rose 11% from $1.84 billion in the same period a year earlier. The results came after the company raised its annual earnings and sales outlook, alongside retail sales growth in off-road vehicles and market-share gains. Coverage published on the results day said the stock rose 3.6% after the announcement, without specifying whether the move was intraday or at the close.
The company raised its adjusted earnings-per-share guidance for fiscal 2026 to $3.50–$3.60, from $3.00–$3.10. The coverage said about $1.09 of the annual forecast is attributable to tariff refunds in the second and third quarters. This means part of the expected earnings is tied to those refunds, alongside operating performance. Polaris also raised its adjusted sales outlook for the year to $7.55–$7.60 billion, compared with the previous range of $7.30–$7.50 billion. The company lifted both ranges after third-quarter results beat analyst estimates, while the impact of refunds illustrates one source of the improvement in the annual outlook.
On demand, retail sales in the Utility ORV category rose 6% in the third quarter, while total ORV retail sales increased 2%, with youth excluded from both figures. The company said it recorded its sixth consecutive quarter of market-share gains in off-road vehicles and also gained share in Marine. CEO Mike Speetzen linked the improved performance to the company's operating practices, saying: "Our disciplined approach to dealer inventory management, focus on operational excellence, and pace of innovation are driving market-share gains and improving financial performance." The retail figures and market-share gains provide context for the annual revenue increase, while the company's comments point to inventory, efficiency and innovation as factors supporting performance. These indicators remain separate from the impact of tariff refunds included in the annual earnings forecast.
Adjusted gross margin improved by 53 basis points to 21.2% in the third quarter. The coverage attributed the improvement to favorable net pricing and operational efficiency, partly offset by higher commodity costs. In the second quarter, sales were $2,023 million, up 9% year over year, and the company said growth was tied to strength in Utility and aligning shipments with retail sales, alongside favorable pricing and fewer promotions. Total retail sales in that quarter, excluding youth, rose 4%, while ORV sales increased 5%. Adjusted gross margin in the second quarter was also 23.9%, up 446 basis points year over year, supported mainly by tariff refunds, net pricing and product mix, according to the company's filing with the U.S. Securities and Exchange Commission.
Second-quarter results included $74 million in tariff refunds, which contributed $0.96 to adjusted earnings per share, according to Polaris' filing with the U.S. Securities and Exchange Commission. This places the refunds in the context of tariffs' impact on the company's results during the year, alongside the improvement in pricing and product mix cited by the company in explaining its margin. Polaris warned in its quarterly report that additional tariffs and changes in trade policies had clearly affected results in the first half of 2026. It said these factors could continue to weigh on results in the future. The company had announced that third-quarter results would be released on October 27 and scheduled its earnings call for the same day at 8:00 a.m. Central Time.