Polaris Inc. (PII): Third Quarter 2026 Earnings Results
Polaris Inc. (PII) filed an SEC Form 8-K — Results of Operations and Financial Condition. Third Quarter 2026 Earnings Results October 27, 2026 FINANCIAL AND OPERATIONAL HIGHLIGHTS • Third quarter sales were $2,043 million, up 11 percent compared to last year driven by strength across all major product lines within Polaris Powersports and Marine. • Third quarter report
How this was made
The 30-second read
Why it matters
The raised guidance reflects operational improvements and pricing strength, suggesting continued earnings momentum.
Market read
Earnings beat and guidance raise are likely to drive short‑term buying interest in PII and related discretionary stocks.
What to watch
Tariff refunds are a one‑time benefit; future quarters may not see similar boosts.
Third quarter sales were $2,043 million, up 11 percent compared to last year, and Polaris raised full year 2026 adjusted sales and adjusted EPS guidance.
Sales increased 11 percent, reported profitability returned from a prior-year loss, adjusted EPS increased 163%, gross profit margin expanded, and the Company raised adjusted sales and adjusted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales, three months ended September 30, 2026GAAP | $2.04B | – | 11% |
| Adjusted sales, three months ended September 30, 2026non-GAAP | $2.04B | – | 11% |
| Gross profit, three months ended September 30, 2026GAAP | $432.4M | – | – |
| Gross profit margin, three months ended September 30, 2026GAAP | 21.2 % | – | +52 bps |
| Adjusted gross profit, three months ended September 30, 2026non-GAAP | $433.4M | – | – |
| Adjusted gross profit margin, three months ended September 30, 2026non-GAAP | 21.2 % | – | +53 bps |
| Total operating expenses, three months ended September 30, 2026GAAP | $375.5M | – | (1)% |
| Operating expenses as a percentage of sales, three months ended September 30, 2026GAAP | 18.4 percent | – | down 223 basis points |
| Operating income, three months ended September 30, 2026GAAP | $ 73.4 | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $ 56.2 | – | – |
| Net income attributable to Polaris Inc., three months ended September 30, 2026GAAP | $ 38.4 | – | NM |
| Adjusted net income attributable to Polaris Inc., three months ended September 30, 2026non-GAAP | $ 63.1 | – | 171% |
| Diluted EPS attributable to Polaris Inc., three months ended September 30, 2026GAAP | $ 0.66 | – | NM |
| Adjusted EPS attributable to Polaris Inc., three months ended September 30, 2026non-GAAP | $ 1.08 | – | 163% |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $180M | – | – |
| Adjusted EBITDA Margin, three months ended September 30, 2026non-GAAP | 8.8 % | – | +118 bps |
| Sales, nine months ended September 30, 2026GAAP | $5.72B | – | – |
| Adjusted sales, nine months ended September 30, 2026non-GAAP | $5.72B | – | – |
| Gross profit margin, nine months ended September 30, 2026GAAP | 21.8 % | – | – |
| Adjusted gross profit margin, nine months ended September 30, 2026non-GAAP | 22.0 % | – | – |
| Operating income (loss), nine months ended September 30, 2026GAAP | $183.1M | – | – |
| Net income (loss) attributable to Polaris Inc., nine months ended September 30, 2026GAAP | $97.4M | – | – |
| Adjusted net income (loss) attributable to Polaris Inc., nine months ended September 30, 2026non-GAAP | $185.6M | – | – |
| Diluted EPS attributable to Polaris Inc., nine months ended September 30, 2026GAAP | $ 1.67 | – | – |
| Adjusted EPS attributable to Polaris Inc., nine months ended September 30, 2026non-GAAP | $ 3.18 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $522.2M | – | – |
| Adjusted EBITDA Margin, nine months ended September 30, 2026non-GAAP | 9.1 % | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $291.8M | – | – |
| Adjusted free cash flow, nine months ended September 30, 2026non-GAAP | $219.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Polaris PowersportsSales were driven by higher ORV, Commercial and snowmobile shipment volumes and positive net price. PG&A sales increased 19 percent compared to the third quarter of 2025. Gross profit margin performance was driven by higher net price and favorable operating costs and partially offset by higher commodity and logistics costs and incremental tariffs. | $1.82B | – | 18 % |
| MarineSales were driven by favorable product mix and higher pontoon shipments. Gross profit margin performance was impacted by positive product mix. | $133.4M | – | 29 % |
| Aixam & GoupilSales were driven by lower Aixam shipments. PG&A sales increased three percent. Gross profit margin performance was driven by decreased leverage of fixed costs as a result of reduced shipments. | $ 68.0 | – | (12) % |
| CorporateCorporate includes results related to previously divested businesses and related transition services and supply agreements. | $ 19.1 | – | NM |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
2026 full year outlook
- Revenue$7.55 billion to $7.60 billion
- NoteAdjusted EPS of $3.50 to $3.60
- Noteapproximately $1.09 is attributed to the benefit of tariff refunds recorded in the second and third quarters of 2026
Capital returns
- Repurchase and retirement of common shares of $ 9.3 for the nine months ended September 30, 2026.
- Cash dividends to shareholders of $ 116.3 for the nine months ended September 30, 2026.
- Cash dividend to noncontrolling interest of $ 0.7 for the nine months ended September 30, 2026.
What drove it
- Total Company sales were positively impacted by higher shipment volumes and positive net price partially offset by the divestiture of Indian Motorcycle.
- North America sales of $1,815 million increased 14 percent from $1,586 million in the third quarter of 2025.
- International sales of $228 million decreased 11 percent versus the third quarter of 2025.
- Polaris Utility ORV retail sales for the quarter, excluding Youth, were up six percent versus last year. ORV retail sales were up two percent, excluding Youth.
- Polaris North America ORV unit retail sales were up low-single digits year-over-year, while estimated North America industry ORV unit retail sales were flat compared to the third quarter of 2025.
- The third quarter results include $10 million of tariff refunds, which benefited adjusted EPS by $0.13.
- Adjusted gross profit margin expansion was primarily driven by positive net price and operational efficiencies, somewhat offset by higher commodity costs.
Concerns
- International sales decreased 11 percent versus the third quarter of 2025.
- Aixam & Goupil sales decreased 12 % and gross profit margin decreased -47 bps.
- Polaris Powersports gross profit margin faced higher commodity and logistics costs and incremental tariffs.
- The Company recorded $24.6 million of expenses related to pending class action lawsuit settlements, related legal costs, and certain costs associated with its active patent infringement matter.
- Net cash provided by operating activities was $ 291.8 for the nine months ended September 30, 2026, compared with $ 562.3 for the nine months ended September 30, 2025.
What to watch
- Execution against 2026 adjusted sales guidance of $7.55 billion to $7.60 billion and adjusted EPS guidance of $3.50 to $3.60.
- The timing, amount and finality of tariff relief and other opportunities to mitigate tariffs.
- Sustainability of ORV market-share gains, which were the sixth straight quarter of share gains.
- North America ORV retail demand relative to estimated industry retail sales, which were flat compared to the third quarter of 2025.
- Margin effects of net price, operational efficiencies, commodity costs, logistics costs, tariffs and product mix.
- The benefit from tariff refunds, of which approximately $1.09 is attributed to refunds recorded in the second and third quarters of 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $ 301.7 at September 30, 2026, compared with $ 335.5 at September 30, 2025.
- Cash, cash equivalents and restricted cash at end of period were $ 318.1 at September 30, 2026, compared with $ 351.5 at September 30, 2025.
- Inventories, net were $ 1,544.9 at September 30, 2026, compared with $ 1,697.3 at September 30, 2025.
- Current financing obligations were $ 35.2 at September 30, 2026, compared with $ 434.8 at September 30, 2025.
- Long-term financing obligations were $ 1,593.2 at September 30, 2026, compared with $ 1,299.8 at September 30, 2025.
- Purchase of property and equipment, net was $ 140.3 for the nine months ended September 30, 2026, compared with $ 118.2 for the nine months ended September 30, 2025.
- Net cash used for investing activities was $ 170.6 for the nine months ended September 30, 2026, compared with $ 76.8 for the nine months ended September 30, 2025.
- Net cash used for financing activities was $ 33.7 for the nine months ended September 30, 2026, compared with $ 459.2 for the nine months ended September 30, 2025.
Analysis
Polaris reported third-quarter sales of $2,042.6, up 11% from $1,841.6. The result reflected higher shipment volumes and positive net price, partially offset by the divestiture of Indian Motorcycle. North America sales of $1,815 million increased 14 percent, while international sales of $228 million decreased 11 percent. Polaris Powersports sales increased 18 % and Marine sales increased 29 %, whereas Aixam & Goupil sales decreased 12 %.
Profitability improved materially. GAAP gross profit margin was 21.2 %, compared with 20.6 %, and adjusted gross profit margin was 21.2 %, compared with 20.7 %. Total operating expenses were $375.5 versus $379.6, and operating expenses as a percentage of sales were 18.4 percent, down 223 basis points. Operating income was $73.4 versus $20.4, while GAAP net income attributable to Polaris Inc. was $38.4 versus a loss of $15.8. Adjusted EPS was $1.08, compared with $0.41.
The operating mix favored the largest businesses. Polaris Powersports benefited from higher ORV, Commercial and snowmobile shipment volumes and positive net price, while Marine benefited from favorable product mix and higher pontoon shipments. Polaris North America ORV unit retail sales were up low-single digits year-over-year against estimated industry retail sales that were flat. Management also cited its sixth straight quarter of ORV share gains. Higher commodity and logistics costs and incremental tariffs remained offsets within Polaris Powersports, and Aixam & Goupil faced lower shipments and lower fixed-cost leverage.
Cash generation was lower over the first nine months. Net cash provided by operating activities was $291.8, compared with $562.3, and adjusted free cash flow was $219.3, compared with $485.5. Cash and cash equivalents were $301.7 at September 30, 2026, while inventories were $1,544.9. The Company repurchased and retired $9.3 of common shares and paid $116.3 of cash dividends to shareholders during the nine-month period.
Polaris raised 2026 adjusted sales guidance to $7.55 billion to $7.60 billion from $7.30 billion to $7.50 billion and raised adjusted EPS guidance to $3.50 to $3.60 from $3.00 to $3.10. The Company stated that approximately $1.09 of the adjusted EPS outlook is attributed to tariff refunds recorded in the second and third quarters of 2026. Third-quarter results included $10 million of tariff refunds that benefited adjusted EPS by $0.13.
Management, verbatim
The Polaris team delivered another strong quarter, reflecting progress we’ve made to strengthen Polaris and position the business for sustainable, profitable growth. Our disciplined approach to dealer inventory, focus on operational excellence and pace of innovation are driving continued share gains and improved financial performance, enabling us to raise our full-year guidance for the third time this year. We remain confident in our long-term strategy and are well positioned to continue building on this momentum.
Mike Speetzen, Chief Executive Officer of Polaris Inc.
Not in the filing
stated, not guessed- Previous outlook section was not provided, so no comparison of reported results with prior guidance is included.
- Quarterly operating cash flow was not reported.
- Quarterly free cash flow was not reported.
- GAAP full-year 2026 sales guidance was not provided.
- GAAP full-year 2026 EPS guidance was not provided.
- Full-year 2026 gross margin, operating-expense and tax-rate guidance was not provided.
- Prior-year operating expenses as a percentage of sales was not printed.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Polaris reported Q3 2026 results with 11% sales growth, improved gross margin, and a shift to profitability after a loss year‑earlier.
Ticker impact
Polaris Inc. raised full-year 2026 adjusted EPS guidance to $3.50‑$3.60 and lifted adjusted sales outlook to $7.55‑$7.60 bn in its Q3 2026 earnings release.
likely upward pressure as investors price in higher earnings expectations
The company posted 11% sales growth, beat prior quarter profit, and added $10 m tariff refunds, providing a solid basis for the raised outlook.
Market effects
Positive for powersports and marine equipment makers, may lift peers in off‑road vehicle space.
Supports US consumer discretionary sentiment, especially in North America where 89% of sales are derived.
Modest impact; reinforces demand trends in discretionary durable goods globally.
Counterpoint
If higher commodity costs persist, the margin boost may be temporary, limiting upside.
Key entities
- companyPolaris Inc.
US‑listed powersports and marine equipment manufacturer.
