Polaris Inc. (PII) shares plummeted 7.64% in pre-market trading on Tuesday, following the release of the company's fourth-quarter 2025 financial results and its outlook for the coming year.
While the powersports vehicle maker reported better-than-expected Q4 sales and adjusted earnings per share, investors reacted negatively to its 2026 adjusted EPS guidance range of $1.50 to $1.60, which fell below the analyst consensus estimate of approximately $1.70 to $1.72. The company also warned of meaningful tariff headwinds expected to pressure margins, particularly in the first half of the year.
Despite the quarterly beats, the cautious forward-looking statements and below-consensus profit outlook drove the significant sell-off in the stock during the pre-market session.
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