Polaris (NYSE:PII) Announces Quarterly Earnings Results

Polaris (NYSE:PII) posted its quarterly earnings data on Tuesday. The company reported $0.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.02, Zacks reports. The company had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.82 billion. Polaris had a negative net margin of 2.17% and a positive return on equity of 3.89%. The business’s quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.92 earnings per share. Polaris updated its FY 2026 guidance to 1.500-1.600 EPS and its Q1 2026 guidance to 0.450-0.450 EPS.

Here are the key takeaways from Polaris’ conference call:

• Tariffs remain a material headwind — Q1 tariffs are ~ $45M, management expects roughly $90M of incremental tariff pressure in 2026 and cited ~ $215M of tariff impact ex-Indian for the year, which weighed on gross margin and adjusted EBITDA.
• The planned separation of Indian Motorcycle is on track to close by the end of Q1 and is expected to be immediately accretive (~$0.75–$0.80 to 2026 adjusted EPS, ~$1 annualized) with $30–$35M of transition-service income aiding the year.
• Operations and supply-chain actions drove meaningful progress — over $60M of manufacturing savings in 2025, ~$240M of structural plant cost reductions over two years, an expected >$30M absorption benefit in 2026, and a target to cut China-sourced material spend from ~18% to <5% of material COGS by end-2027.
• Dealer inventories are healthier (under 100 days and a stronger current/non-current mix), Polaris reported share gains across key segments and strong demand for new products (e.g., Ranger 500, RZR Pro R), supporting retail and PG&A growth.
• 2026 guidance: total company sales +1–3% (7–9% organic ex-Indian), adjusted EBITDA margin +80–120bps, adjusted EPS $1.50–$1.60, and management expects roughly $160M operating cash flow and ~$120M free cash flow for the year.

Polaris Stock Performance

Shares of NYSE PII opened at $66.25 on Wednesday. The company has a quick ratio of 0.36, a current ratio of 1.02 and a debt-to-equity ratio of 1.13. The firm’s 50-day moving average price is $67.53 and its two-hundred day moving average price is $61.90. Polaris has a 52-week low of $30.92 and a 52-week high of $75.25. The stock has a market capitalization of $3.73 billion, a P/E ratio of -25.00, a P/E/G ratio of 2.26 and a beta of 1.14.

Polaris Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were issued a $0.67 dividend. The ex-dividend date of this dividend was Monday, December 1st. This represents a $2.68 dividend on an annualized basis and a yield of 4.0%. Polaris’s dividend payout ratio (DPR) is currently -101.13%.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on PII shares. Royal Bank Of Canada restated a “sector perform” rating and issued a $67.00 target price on shares of Polaris in a research note on Tuesday. Robert W. Baird upped their price objective on shares of Polaris from $55.00 to $60.00 and gave the company a “neutral” rating in a research report on Monday, October 6th. BMO Capital Markets restated a “market perform” rating and set a $70.00 target price on shares of Polaris in a research note on Wednesday, October 29th. Morgan Stanley boosted their price target on Polaris from $72.00 to $81.00 and gave the stock an “equal weight” rating in a research note on Friday, January 16th. Finally, Seaport Research Partners raised Polaris to a “strong-buy” rating in a report on Thursday, January 8th. One investment analyst has rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $59.82.

Polaris News Roundup

Here are the key news stories impacting Polaris this week:

• Positive Sentiment: Q4 results beat expectations: Polaris reported EPS of $0.08 (vs. consensus $0.06) and revenue of $1.92B (vs. ~$1.82B), with revenue up ~9.5% year-over-year — showing demand resilience. Polaris beats Q4 expectations, shares dip slightly
• Neutral Sentiment: Company filed its Q4 & FY 2025 release and investor materials (transcript/slide deck available) — useful for digging into segment details, inventory, and regional trends. Polaris Inc. Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Tariff headwinds flagged on the call: management warned that new or rising tariffs are pressuring input costs and will negatively impact margins — a key reason investors are selling despite the quarter’s beat. Polaris Flags Tariff Hit, Issues Cautious Outlook
• Negative Sentiment: FY 2026 EPS guidance came in below Street expectations (EPS guide $1.50–$1.60 vs. consensus ~$1.78), signaling margin recovery may be slower than analysts hoped — this guidance revision is weighing on the stock. Why Polaris (PII) Stock Is Trading Lower Today
• Negative Sentiment: Analyst/market commentary emphasizes margin pressure from tariffs and FX, and flags that while revenue topped estimates, profitability (negative net margin reported) and leverage (debt-to-equity ~1.13) leave the company sensitive to cost shocks. Polaris falls after tariffs pressure margin rates

Insider Buying and Selling at Polaris

In related news, SVP James P. Williams sold 4,554 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $67.53, for a total value of $307,531.62. Following the sale, the senior vice president owned 43,878 shares of the company’s stock, valued at approximately $2,963,081.34. This trade represents a 9.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 3.12% of the company’s stock.

Institutional Investors Weigh In On Polaris

Several large investors have recently added to or reduced their stakes in PII. Northwestern Mutual Wealth Management Co. grew its holdings in Polaris by 13.8% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 3,924 shares of the company’s stock worth $228,000 after buying an additional 475 shares in the last quarter. Laird Norton Wetherby Wealth Management LLC bought a new stake in Polaris during the 3rd quarter valued at $249,000. Paces Ferry Wealth Advisors LLC acquired a new position in Polaris during the 3rd quarter worth $244,000. Mackenzie Financial Corp acquired a new position in Polaris during the 3rd quarter worth $211,000. Finally, Quadrant Capital Group LLC bought a new position in shares of Polaris in the third quarter worth $212,000. 88.06% of the stock is owned by institutional investors and hedge funds.

Polaris Company Profile

Polaris Inc, founded in 1954 and headquartered in Medina, Minnesota, is a diversified manufacturer of powersports vehicles and related products. Initially gaining prominence with its snowmobiles, Polaris expanded its portfolio over the decades to include all-terrain vehicles (ATVs), side-by-side off-road vehicles, and motorcycles. The company’s legacy in recreational and utility vehicle innovation stems from early engineering breakthroughs that established Polaris as a leading name in off-road mobility.

Today, Polaris offers a broad range of products under well-known brands such as Polaris RANGER and POLARIS SPORTSMAN for utility and recreation markets, Slingshot three-wheel roadsters for on-road enthusiasts, and the Indian Motorcycle brand for premium two-wheeled touring and cruiser segments.