Polaris Raises 2026 Outlook After Quarterly Earnings Per Share of $1.08
Key Facts
Polaris reported third-quarter results on October 27, posting adjusted earnings per share of $1.08, compared with analysts’ average estimate of $0.59. Revenue was $2.04 billion, above estimates of $1.9 billion. Revenue rose 11% year over year from $1.84 billion in the same period of 2025. The company also raised its full-year adjusted earnings per share and sales outlook, signaling a more favorable view of the year’s performance. Shares rose 3.6% after the results were announced, according to Investing.com coverage published on the day of the announcement. That reaction followed the results and was temporally separate from the stock’s close at $55.15 on October 26, the day before the announcement.
Polaris raised its 2026 adjusted earnings per share outlook to $3.50–$3.60, from a previous range of $3.00–$3.10. The company said about $1.09 of its full-year outlook is attributable to tariff refunds received in the second and third quarters. Third-quarter results included refunds of $10 million, which added $0.13 to adjusted earnings per share. Second-quarter refunds were larger, at $74 million, and contributed $0.96 to adjusted earnings per share, according to the company. The refunds are among the factors to consider in assessing the new annual outlook, alongside operating results. The 2026 adjusted sales outlook also rose to $7.55–$7.60 billion, from a previous $7.30–$7.50 billion.
On demand and competition, Polaris said it recorded its sixth consecutive quarter of market share gains in off-road vehicles and also posted gains in marine. Retail sales of Polaris Utility ORVs rose 6% year over year during the quarter, excluding the Youth category. Total ORV retail sales increased 2% when that category was excluded. CEO Mike Speetzen said, "Our disciplined approach to managing dealer inventory, our focus on operational excellence, and our pace of innovation are driving continued market share gains and improved financial performance." The company thus links dealer inventory management, efficiency and innovation with continued share gains. These indicators provide operating context for the higher sales and earnings outlook, alongside the impact of tariff refunds.
Adjusted gross margin expanded 53 basis points to 21.2% in the third quarter. The company attributed the improvement to positive net pricing and operational efficiency, partly offset by higher commodity costs. In the second quarter, sales were $2.023 billion, up 9% year over year, and adjusted earnings per share were $1.97. Results for that quarter included tariff refunds of $74 million, which the company said added $0.96 to adjusted earnings per share. On a year-over-year basis, Polaris reported diluted loss per share of $0.28 in the third quarter of 2025, while adjusted earnings per share were $0.41. These figures distinguish reported and adjusted measures when comparing the current quarter with the year-earlier period.
Polaris’ third-quarter earnings conference call was scheduled for October 27, 2026, at 8:00 a.m. Central Time. The event gives the company an opportunity to present its results and full-year outlook alongside the announcement. The 3.6% share gain followed the announcement, while the October 26 close at $55.15 came before the results. The stock had closed at $54.82 on October 23, according to EL7 data. Thus, the October 26 closing price does not represent a move following the October 27 results. The new earnings and sales outlook remains a key focus in tracking the company’s performance through the rest of 2026.