Smith & Wesson Q1 Sales Rise 32% as Long Guns Gain

Published: September 5, 2026 at 8:06 AM MST

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September 5, 2026 | United States — Smith & Wesson Q1 sales rose 32.3% from a year earlier to $112.6 million, giving the firearms manufacturer a stronger opening to fiscal 2027 after a year of product launches and operating changes. The gain reached both sides of the company’s catalog: handgun sales increased 29.0%, while long-gun sales climbed 49.9%.

The results, released September 3 for the quarter ended July 31, are the first financial checkpoint since Gun Place examined the company’s fiscal 2026 growth strategy. They show that demand and product mix improved, but they also require an important qualification: a non-recurring tariff refund added $2.9 million to gross profit and lifted the reported gross-margin rate by about 2.6 percentage points.

Smith & Wesson Q1 sales improved across the portfolio

Smith & Wesson reported handgun revenue of $83.8 million, up from $64.9 million in the comparable quarter. Long-gun revenue reached $20.4 million, compared with $13.6 million a year earlier. Other products and services contributed $8.4 million, up from $6.5 million.

In its Form 10-Q filed with the Securities and Exchange Commission, the company attributed the handgun increase to stronger consumer demand, a mix shift toward higher-priced products, new product introductions, and price increases of roughly 2% to 3% that took effect January 1. That distinction matters: revenue growth can reflect both more units and more revenue per unit, so the top-line gain should not be read as a direct measure of nationwide firearm demand.

The long-gun category posted the faster percentage gain. Smith & Wesson said its unit shipments into the sporting-goods channel rose 21.7%, while the adjusted background-check measure it cited for the overall long-gun market increased 10.1% during the same period. The comparison suggests company-specific gains beyond the broader market, although adjusted NICS data are a market indicator rather than a count of retail sales. Readers can see additional context in Gun Place’s analysis of July 2026 NICS activity.

Profit returned, but the tariff refund needs context

Gross profit increased to $32.3 million from $22.1 million, and the gross-margin rate rose to 28.7% from 25.9%. Smith & Wesson said the quarter included $2.9 million in tariff refunds connected to earlier payments on imported goods. Because management described that benefit as non-recurring, it should not be treated as a normal part of the company’s ongoing margin.

Without mechanically assuming that every other cost stayed fixed, subtracting the disclosed 2.6-percentage-point effect indicates an underlying gross-margin rate of roughly 26.1%. That is still modestly above the prior-year 25.9%, but far closer than the headline figure suggests. This is an inference from the company’s disclosures, not a separate company-reported non-GAAP measure.

On a generally accepted accounting principles basis, net income was $2.6 million, or $0.06 per diluted share. A year earlier, the company recorded a $3.4 million loss, or $0.08 per diluted share. Adjusted EBITDAS increased to $13.8 million, representing 12.2% of sales, from $7.4 million and 8.7% a year earlier. Investors and industry readers should remember that adjusted EBITDAS excludes items included in GAAP results and is best used alongside, not instead of, the company’s full financial statements.

What changed since the fiscal 2026 report

Smith & Wesson closed fiscal 2026 with annual revenue of $523.8 million, up 10.4%, and fourth-quarter revenue of $178.4 million, up 26.7%, according to its June fiscal-year results. At that point, the company emphasized new-product momentum, capacity, and a broader portfolio.

The new development is evidence that the momentum carried into the first quarter, including a particularly strong long-gun comparison and a return to quarterly profitability. It is not, by itself, proof that the current growth rate will persist. Firearms demand is seasonal, product introductions can shift sales between quarters, and dealer inventory levels can affect manufacturer shipments independently of end-customer purchases.

The 10-Q also says the company expected its own inventory to build through the second quarter before declining later in the fiscal year. That is a useful operational detail to watch. Rising inventory can support later shipments and new-product availability, but sustained inventory growth without matching sell-through can also lead to discounting or production adjustments.

Management’s outlook is encouraging, not guaranteed

Chief Financial Officer Deana McPherson said the company expected second-quarter sales to be about 10% higher than the prior-year quarter and maintained a fiscal 2027 revenue-growth outlook of 5% to 7%. Those figures are management forecasts and therefore remain subject to demand, promotional activity, costs, tariffs, product timing, and broader economic conditions.

For retailers and consumers, the practical signal is a healthier flow of both handguns and long guns from a large manufacturer, not necessarily a broad shortage or price surge. The results suggest that new products and higher-value configurations are contributing to revenue. They do not establish that every model, caliber, or regional market is moving at the same pace.

For the wider firearms business, the quarter is a reminder to separate three questions: whether the market is growing, whether a particular manufacturer is gaining share, and whether reported profit includes unusual items. Smith & Wesson’s filing offers evidence in all three areas, but the cleanest reading is nuanced: sales and operating performance improved, long guns outpaced the market comparison cited by the company, and a one-time refund made the reported margin look stronger than the underlying change alone.

Bottom line

Smith & Wesson began fiscal 2027 with broad revenue growth and a return to profit. The 32.3% sales increase is meaningful, especially alongside the 49.9% rise in long-gun revenue. Still, readers should discount the one-time tariff benefit when evaluating margin quality and treat management’s outlook as a forecast rather than a confirmed result.

Gun Place will continue tracking manufacturer reports and market indicators in its Industry & Market coverage. Our sourcing, corrections, ownership, and editorial standards are available in the Gun Place newsroom.

Sources

• Smith & Wesson Brands: First Quarter Fiscal 2027 Results, September 3, 2026.
• Smith & Wesson Brands Form 10-Q, filed September 3, 2026.
• Smith & Wesson Brands: Fourth Quarter and Full Fiscal 2026 Results, June 2026.

This article is for general informational purposes and is not investment or legal advice.

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