Polaris (NYSE:PII) Announces Quarterly Earnings Results

Polaris (NYSE:PII) released its quarterly earnings data on Tuesday. The company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.02, Zacks reports. The company had revenue of $1.92 billion during 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% compared to the same quarter last year. During the same quarter in the prior year, the business earned $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 Down 4.1%

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

Polaris Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Investors of record on Monday, December 1st were paid a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date was Monday, December 1st. Polaris’s payout ratio is currently -101.13%.

Analysts Set New Price Targets

Several research firms have commented on PII. Morgan Stanley raised their price objective on Polaris from $72.00 to $81.00 and gave the company an “equal weight” rating in a research report on Friday, January 16th. Citigroup lifted their price objective on shares of Polaris from $60.00 to $71.00 and gave the company a “neutral” rating in a research note on Thursday, October 30th. Weiss Ratings upgraded shares of Polaris from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, January 16th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $67.00 price target on shares of Polaris in a report on Tuesday. Finally, BMO Capital Markets reiterated a “market perform” rating and issued a $70.00 price objective on shares of Polaris in a report on Wednesday, October 29th. One investment analyst has rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently 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: Q1 2026 guidance materially beat consensus: Polaris gave Q1 EPS guidance of $0.45 (vs. a consensus estimate near -$0.47), signalling a stronger near?term profit outlook than street models expected.
• Positive Sentiment: Q4 results edged out estimates — reported EPS of $0.08 beat consensus (~$0.06–$0.07) and management published an earnings release and slide deck. Polaris Inc (PII) Reports Q4 Earnings: What Key Metrics Have to Say
• Neutral Sentiment: Top-line momentum: Q4 revenue rose ~9.5% year-over-year, a positive operational signal but already reflected in company materials. Polaris Inc. Fourth Quarter and Full Year 2025 Financial Results Available on Company’s Website
• Negative Sentiment: FY 2026 EPS guidance disappointed: management set full?year EPS at $1.50–$1.60 vs. a consensus around $1.78, leaving investors concerned about downward profit trajectory for the year. Polaris Inc. Fourth Quarter and Full Year 2025 Financial Results Available on Company’s Website
• Negative Sentiment: Profitability metrics remain a concern: Polaris reported a negative net margin (~-2.2%) despite a small ROE, and the stock is seeing higher-than-normal trading volume during the pullback — signs that the market is focusing on margin recovery and FY outlook risks.

Insider Buying and Selling at Polaris

In other Polaris news, SVP James P. Williams sold 4,554 shares of Polaris stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $67.53, for a total value of $307,531.62. Following the transaction, the senior vice president owned 43,878 shares in the company, valued at approximately $2,963,081.34. The trade was a 9.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 3.12% of the company’s stock.

Hedge Funds Weigh In On Polaris

Several institutional investors and hedge funds have recently bought and sold shares of the business. Canada Pension Plan Investment Board bought a new stake in Polaris in the second quarter valued at $73,000. NewEdge Advisors LLC raised its holdings in Polaris by 34.1% during the 2nd quarter. NewEdge Advisors LLC now owns 1,877 shares of the company’s stock worth $76,000 after purchasing an additional 477 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in Polaris by 582.8% in the second quarter. EverSource Wealth Advisors LLC now owns 2,144 shares of the company’s stock valued at $87,000 after buying an additional 1,830 shares during the period. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Polaris by 43.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,449 shares of the company’s stock valued at $140,000 after purchasing an additional 1,037 shares during the period. Finally, Mackenzie Financial Corp bought a new position in shares of Polaris in the 3rd quarter worth $211,000. Hedge funds and other institutional investors own 88.06% of the company’s stock.

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.