Should you sell your Polaris stock?

Roth Capital Markets analyst Scott Stember maintained a “Neutral” rating on Polaris (Polaris Stock Quote, Chart, News, Analysts, Financials NYSE:PII) after the company reported a first-quarter profit ahead of expectations and reaffirmed its 2026 guidance.

Polaris reported adjusted EPS of $0.13, ahead of Stember’s negative $0.45 estimate and the Street’s negative $0.39 forecast, while reversing a loss of $0.90 a year earlier. Revenue rose 8%, with North American retail up 1%.

In his April 27 note, Stember said operating income of about $32-million reversed a $20-million loss a year earlier, helped by a 390-basis-point improvement in gross margin to 20.5% despite tariff pressure.

Polaris maintained 2026 guidance for revenue of $7.15-billion to $7.30-billion and EPS of $1.60 to $1.70, compared with consensus of $1.67.

Following the separation of Indian Motorcycle, Polaris now reports through Polaris Powersports, Marine and Aixam & Goupil. Powersports revenue rose 14%, with wholegoods revenue up 15% and parts, garments and accessories up 14%. North American off-road vehicle retail rose in the low single digits, in line with the industry, with utility demand up high single digits and recreation demand down high single digits.

Stember said Polaris saw January and February growth offset by a mid-March pullback in off-road retail, and he is waiting for more detail on whether that softness continued into April.

Marine revenue rose nine per cent to $125-million, helped by a higher mix of newer premium Bennington and Godfrey pontoons, while Aixam & Goupil revenue also rose 9% to $67-million.

Stember said he remains neutral ahead of the company’s conference call, where he expects more detail on the soft first-quarter retail exit rate and the effect of tariffs after recent Section 232 changes.

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