Smith & Wesson shares surge 23.14% after-hours as Q2 adjusted EPS and EBITDAS exceed estimates, driven by new product success and leaner inventory.

Smith & Wesson Brands (SWBI) surged 23.14% in after-hours trading following the release of its Q2 fiscal 2026 earnings report, which highlighted stronger-than-expected profitability despite a 3.9% year-over-year sales decline to $124.7 million. The company reported adjusted EPS of $0.04, doubling analyst estimates, and non-GAAP Adjusted EBITDAS of $15.1 million, exceeding forecasts by 26%. Strong operational efficiency, disciplined inventory management (reducing distributor inventory by 15% year-over-year), and robust free cash flow of $27.3 million were cited as key drivers. CEO Mark Smith emphasized the success of new product launches, which accounted for 38.7% of sales, and CFO Deana McPherson projected 8–10% Q3 sales growth. The market’s focus on profitability and cash flow improvements, rather than the modest revenue dip, fueled the sharp post-earnings rally.