Scotts Miracle-Gro Company's stock surged 5.23% at the market open, propelled by the release of its fiscal second-quarter 2026 results that significantly exceeded analyst expectations across key financial metrics.

The lawn and garden products marketer reported net sales of $1.46 billion, a 5% year-over-year increase that beat the consensus estimate of $1.41 billion. Non-GAAP adjusted earnings per share came in at $4.53, surpassing the $4.02 estimate by 12.69%. Adjusted EBITDA reached $437.4 million, also topping forecasts of $399.2 million, while the company improved its gross margin rate by over 200 basis points.

Management reaffirmed its fiscal 2026 guidance, projecting U.S. Consumer net sales growth in the low single digits and adjusted EPS between $4.15 and $4.35. The company also reported a strengthened balance sheet, with net leverage improving to 3.71x from 4.41x a year earlier, positioning it for shareholder-friendly actions including its previously announced multi-year share repurchase program.