Smith & Wesson Stock Rises on Q1 Earnings Beat

Shares of Smith & Wesson Brands, Inc. (NASDAQ: SWBI) climbed over 6% after the company announced first-quarter fiscal 2026 financial results that surpassed Wall Street expectations. The iconic American firearms manufacturer reported a narrower-than-expected loss, signaling resilience during a seasonally slow period for the industry.

For the quarter ending July 31, 2025, Smith & Wesson , a 3.7% decrease from the same period last year but comfortably ahead of the $79.1 million consensus estimate. The company recorded a GAAP net loss of $3.4 million, or $0.08 per diluted share. This performance represented a significant beat over analyst forecasts, which had anticipated a loss of $0.12 per share.

CEO Mark Smith credited the better-than-expected results to robust demand for new products and strong market share. "Our performance during the seasonal slow period for firearms demonstrates the strength of our brand and the ongoing success of our innovation strategy," Smith stated. Innovation was a key driver, with new products accounting for a substantial 37.3% of sales in the quarter.

Despite the year-over-year revenue dip, the company's forward-looking statements provided a bullish outlook. CFO Deana McPherson highlighted a key operational success, noting that inventory at distributors declined by over 10% from the previous quarter. "This indicates positive sell-through of our products at retail and a good position for us as we look forward to the coming months," McPherson explained. The company projects a significant seasonal sales increase for the second fiscal quarter.

In a move reflecting confidence in its financial stability, the company's board of directors also . The results show the company navigating the industry's cyclical trends effectively, with its focus on new models paying dividends and setting a positive tone for the upcoming quarters, a sentiment further validated by .