Polaris Posts $1.08 Per Share, Raises Forecast After 11% Revenue Growth
Key Facts
Polaris reported third-quarter 2026 results on October 27, posting adjusted earnings of $1.08 per share and revenue of $2.04 billion, above analysts’ estimates of $0.59 per share and $1.9 billion in revenue, according to a report published by Investing.com and attributed to Reuters. Earnings per share exceeded the estimate by $0.49, while revenue rose 11% from $1.84 billion in the third quarter of 2025. The company released its results on the same day it held an investor call at 8:00 a.m. Central Time, hosted by CEO Mike Speetzen and CFO Bob Mack, according to its investor relations page. The announcement sent the stock up 3.6%, according to coverage published that day. The results centered on sales growth and retail gains, alongside tariff refunds that supported earnings and annual guidance.
Polaris raised its adjusted earnings-per-share forecast for fiscal 2026 to a range of $3.50–$3.60, from its previous range of $3.00–$3.10, and increased its adjusted sales forecast to $7.55–$7.60 billion from $7.30–$7.50 billion. But about $1.09 of forecast annual earnings per share is attributable to tariff refunds the company received in the second and third quarters, according to the report. Third-quarter results themselves included $10 million in tariff refunds, adding $0.13 to adjusted earnings per share. That puts the refunds’ impact at the heart of the new guidance, alongside sales and operating performance. Second-quarter refunds were larger, at $74 million, and contributed $0.96 to adjusted earnings per share of $1.97, according to Polaris’ filing with the U.S. Securities and Exchange Commission.
Retail indicators showed continued demand growth for off-road vehicles: Utility ORV retail sales rose 6% in the third quarter year over year, while total ORV retail sales increased 2%; both figures exclude the youth category. The company said it recorded its sixth consecutive quarter of market-share gains in off-road vehicles and also increased its share in Marine. The Polaris Powersports segment led sales performance, posting $1.82 billion, up 18% year over year, as shipments increased across off-road vehicle, commercial and snow products. These indicators provide operating context for revenue growth, which exceeded pre-release estimates. In the second quarter, global sales totaled $2.023 billion, up 9% from the same period in 2025, according to the company’s filing.
Adjusted gross margin improved by 53 basis points to 21.2% in the third quarter, supported by better net pricing and operating efficiency, while higher commodity costs partly offset the improvement. CEO Mike Speetzen said, "Our disciplined approach to managing dealer inventory, our focus on operational excellence, and our pace of innovation are driving market-share gains and improving financial performance." In the second quarter, the company linked sales growth to strength in the Utility category and aligning shipments with retail sales, along with better pricing and fewer promotions, according to its filing. Total retail sales that quarter, excluding the youth category, rose 4% year over year, while ORV sales increased 5%. First-quarter sales were $1.659 billion, up 8% year over year; the company then reported a diluted loss of $0.83 per share and adjusted earnings of $0.13 per share.
Ahead of the results, Wells Fargo on October 19 cut its price target for Polaris to $55 from $70, while Baird lowered its target to $65 from $72 and UBS to $61 from $67, according to a results preview published on Investing.com. The changes came before the company beat third-quarter estimates and raised both its earnings and sales forecasts for the year. The second quarter had posted adjusted diluted earnings of $1.97 per share, including a $0.96 impact from tariff refunds, according to the company’s filing. In the first quarter, annual sales growth was 8%, alongside a divergence between the reported diluted loss and adjusted profit. The new results put retail sales, market-share gains and margins alongside the impact of refunds in assessing the company’s performance trajectory in 2026.