10-K · June 17, 2026
Smith & Wesson Brands, Inc. reported a strong fiscal 2026, with net sales of $523.8 million and a 10.4% increase year-over-year. The gross profit also rose to $141.1 million, while net income reached $18.5 million, or…
Earnings analysis · 10-Q
SWBI earnings analysis
Filed September 3, 2026 · Our reading of the company's report
The latest report
Smith & Wesson reported $112.6 million of revenue and $0.06 diluted EPS, beating consensus of $98.7 million and $(0.05), respectively, while revenue increased 32.5% year over year. Gross margin improved to 28.7%, but…
Read full summary
Smith & Wesson reported $112.6 million of revenue and $0.06 diluted EPS, beating consensus of $98.7 million and $(0.05), respectively, while revenue increased 32.5% year over year. Gross margin improved to 28.7%, but the filing notes that a non-recurring $2.9 million tariff refund contributed to the result, and free cash flow declined to negative $20.8 million from negative $12.0 million year over year. Fiscal 2027 revenue growth expectations of approximately 5%-7% were maintained, with no EPS guidance provided; sentiment is therefore neutral.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.06
- Gross margin
- 28.7%
What stood out
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Revenue beat estimates and prior year
Revenue was $112.6 million, 14.1% above the $98.7 million consensus estimate and 32.5% above the $85.0 million prior-year quarter, although 36.7% below the preceding quarter's $178.0 million.
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EPS beat and turned profitable
Diluted EPS was $0.06 versus the $(0.05) consensus estimate and $(0.08) in the prior-year quarter, representing a swing to profitability.
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Gross margin improved
Gross margin increased to 28.7% from 25.9% in the prior-year quarter, a 2.8 percentage-point improvement. The filing discussion identified a $2.9 million non-recurring tariff refund as a contributor.
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Fiscal 2027 outlook maintained
Management maintained its fiscal 2027 revenue growth outlook of approximately 5%-7% over fiscal 2026 and expects second-quarter sales to be roughly 10% above last year.
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Controls remained effective
Disclosure controls and procedures were concluded effective as of July 31, 2026, and the company reported no internal-control change that materially affected or was reasonably likely to materially affect financial reporting.
What to watch
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Negative free cash flow
Free cash flow was negative $20.8 million, versus negative $12.0 million in the prior-year quarter, despite the reported $0.06 diluted EPS profit. This indicates weaker cash conversion and raises working-capital and liquidity sensitivity.
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Non-recurring tariff benefit
The $2.9 million tariff refund was described as non-recurring and contributed to the quarter's margin improvement. Excluding this benefit, reported gross margin of 28.7% may not be fully indicative of sustainable profitability.
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Demand and regulatory uncertainty
Management maintained revenue growth expectations at approximately 5%-7% for fiscal 2027 rather than raising them after the revenue beat; the filing also anticipates second-quarter sales roughly 10% above last year. Demand and regulatory conditions remain material uncertainties.
Management's outlook
Management maintained fiscal 2027 revenue growth expectations of approximately 5%-7% over fiscal 2026 and anticipates second-quarter sales roughly 10% above last year. No numeric fiscal 2027 EPS guidance was provided.
Earlier filings 4
10-Q · March 5, 2026
Smith & Wesson (SWBI) delivered a quarter above expectations with net sales of $135.709 million (up from $115.885 million a year ago) and diluted EPS of $0.08 (versus $0.05 prior-year). Gross profit increased to $35.589…
10-Q · December 4, 2025
Smith & Wesson reported net sales of $124.67 million and diluted EPS of $0.04 for the three months ended October 31, 2025, down from $129.68 million and $0.10 in the prior-year quarter. Gross profit fell to $30.35…
10-Q · September 4, 2025
Smith & Wesson reported net sales of $85,077 (in thousands) and a net loss of $(3,411) (in thousands) for the three months ended July 31, 2025, with diluted loss per share of $(0.08). Gross profit fell to $22,074 (in…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.