Polaris: Shifting Gears Into Higher Growth

Polaris is rated BUY, with 24% upside potential driven by secular AI data center buildouts fueling utility vehicle demand. 70% of Powersports sales now come from the utility segment, benefiting from robust data center construction and new product launches. 1Q26 delivered strong results: EPS beat by 130%, revenue grew 8% YoY, and margins expanded across all segments. Valuation is 20% below recent peaks, with a 4.3% dividend yield and 31 consecutive years of dividend increases supporting total return. Polaris Inc ( PII ) stock is flat YTD, but the company has a strong tailwind as its ORVs are used in commercial buildouts such as data centers. The majority of ORV revenue is now from the