Callaway Golf Company's stock surged 10.02% intraday on Thursday, marking a significant upward movement for the golf equipment and apparel maker.

The sharp rise follows the company's release of first-quarter 2026 financial results, which showed a substantial beat on Adjusted EBITDA. Callaway reported Q1 Adjusted EBITDA of $163.7 million, well above the IBES estimate of $116.4 million. Revenue for the quarter increased 9.2% year-over-year to $687.5 million, with strong growth in both the Golf Equipment segment (up 9.5%) and the Apparel, Gear and Other segment (up 8.4%). Gross margin improved by 250 basis points to 47.5%.

Investors responded positively to the company's raised full-year guidance. Callaway increased its 2026 net sales outlook to a range of $2.015 billion to $2.070 billion, up from the previous forecast of $1.98 billion to $2.05 billion. The company also lifted its Adjusted EBITDA forecast to $211 million to $233 million from $170 million to $195 million. Additional positive factors included the repurchase of $79 million in shares and the settlement of $258 million in convertible notes, leaving the company in a net cash position.