Polaris (PII) Q3 2026 earnings summary

Executive summary

• Q3 adjusted sales were $2,041.8M, up 11% YoY and 17% excluding the Indian Motorcycle separation; results exceeded expectations.

• Adjusted EBITDA rose 28% to $180.0M, with margin up 118 bps to 8.8%; adjusted EPS was $1.08, including tariff refunds.

• FY26 sales and EPS guidance increased for the third time, reflecting operating performance and tariff refunds.

Financial highlights

• Adjusted gross profit was $433.4M and adjusted gross margin was 21.2%; adjusted net income was $63.1M.

• Operational adjusted EPS was $0.95 versus $0.41 in Q3 2025; adjusted EPS was $1.08 versus $0.41.

• Operating cash flow was ~$382M as seasonal working capital unwound; nine-month adjusted free cash flow was $219.3M.

• Approximately $0.30 of adjusted EPS shifted from Q4 to Q3, mainly from earlier RANGER production and snowmobile shipments.

Outlook and guidance

• FY26 adjusted sales guidance rose to $7.55B–$7.60B; midpoint organic growth excluding Indian Motorcycle is ~11%.

• FY26 adjusted EBITDA margin is expected to increase 270–275 bps; operational expansion excluding tariff refunds is expected at 165–170 bps.

• FY26 adjusted EPS guidance increased to $3.50–$3.60, including $1.09 from tariff refunds; operational adjusted EPS excluding refunds is $2.40–$2.50.

• Q4 organic sales are expected roughly flat and adjusted EPS is guided to $0.32–$0.42, reflecting ~$0.30 shifted into Q3.

• No formal 2027 guidance yet; priorities include shipment and retail alignment, productivity, tariff mitigation, and net leverage within a 1.0x–2.0x target range.