The new outlook and what changed
On its earnings call, the Minnesota-based company raised its 2026 earnings target - marking its third guidance increase this year. It now projects operational adjusted profit per share of $2.40 to $2.50, excluding tariffs refunds, compared with the earlier $2.05 to $2.15 range.
Why the company says it's improving
Executives pointed to a heavier tilt toward commercial buyers and defense customers, which management said should help reduce reliance on discretionary spending. CEO Mike Speetzen said commercial momentum is coming from data center build-outs, with contractors relying on off-road vehicles to move crews and gear. The defense unit, meanwhile, is benefiting from surging military budgets worldwide and recently won a $98 million deal with the US Marine Corps to deliver ultra-light tactical vehicles. Beyond its off-road range, the company's catalog also includes pontoon boats, vehicles used by border patrol, and snowmobiles.
Sales, market reaction, and what to watch
Third-quarter sales climbed 11%, the strongest growth in more than three years, and Speetzen said more than half of revenue came from customers buying vehicles for work. The stock rose 9.4% to $60.34 at 10:49 a.m. in New York, putting it on pace for its biggest gain since April.
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What it means for your portfolio
In plain English: more revenue tied to data centers and defense steers sales toward business and government needs, which management said should help lower sensitivity to retail swings. If that mix holds, earnings could be steadier across consumer cycles, with 2026 guidance already reset higher.
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