Acushnet Holdings slipped 0.6% to about US$93 in the first trading session after its second quarter report, even though the headline numbers looked built for a stronger reaction. Revenue for the quarter came in at roughly US$820m and earnings per share landed a little above US$2, powered by a sharp jump in golf equipment and a tariff refund boost.

The short term move leaves the stock down over the past month but slightly up over three months. The real story now shifts to what this earnings beat, the margin mix and the one off tariff benefit mean for Acushnet’s multi year earnings profile and ongoing valuation debate.

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Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025): US$819.951m vs. US$720.476m (up about 14%)
• Net Income (Excl. Extra Items, Q2 2026 vs. Q2 2025): US$124.832m vs. US$75.563m (up about 65%)
• Basic EPS (Q2 2026 vs. Q2 2025): US$2.089 vs. US$1.256 (up about 66%)
• Gross Margin (Q2 2026 vs. Q2 2025): 54.4% vs. 49.2% (up 520 basis points, with Q2 2026 supported by tariff refunds)

Prefer clean visuals instead of another wall of earnings tables and footnotes? Get a full, chart based view of Acushnet Holdings, with a focus on its valuation and how the market is currently pricing the stock, through our company report for Acushnet Holdings.

Acushnet bull story: premium engine firing, with caveats

Bulls argue that Acushnet’s premium brands, product cycles and self help on operations can support steady earnings power. Q2 gives them real support. Revenue rose 14% and adjusted EBITDA jumped 46%, helped by strong Titleist club demand, healthy ball growth and broad based regional strength, including double digit growth in the U.S., EMEA and Japan. That is exactly the type of sell through and geographic balance the bullish narrative looks for. Management also raised full year sales and EBITDA guidance and is pushing ahead with investments in ball capacity, club assembly and ERP. At the same time, the quality question does not fully go away. Gross margin reached 54.4%, yet H1 margin excluding refunds was 48.1%, slightly weaker year on year. This shows that part of the current step up in profitability is temporary.

Bear case: quality of earnings and tariff support

Bears focus on mixed earnings quality, tariff exposure, softer cash generation and a stock that has already run hard. This quarter only partly addresses those concerns. On the positive side, operating cash flow in the first half improved by US$76m, net leverage sits slightly below the 2.25x target and Acushnet returned US$57m through dividends and buybacks while still funding higher capex. That counters the idea of a chronically constrained balance sheet. However, gross margin excluding refunds was 48.1% in H1, which was slightly weaker, and incremental tariff expense increased by about US$29m. The US$38m Q2 tariff refund benefit and expected US$30m full year net benefit are clearly one off in nature. Recent 30 day share returns are down about 16%, which suggests the market is questioning how repeatable this earnings mix really is.

After tariff refunds and mixed gross margin trends, it is fair to ask whether these issues are isolated. Review the full risk analysis for Acushnet Holdings which shows 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.