Investing.com -- Energizer Holdings Inc. (NYSE: ENR) shares rose 4.94% after the company reported second-quarter fiscal 2026 results that exceeded Wall Street expectations.

The battery maker posted adjusted earnings per share of $0.94, nearly double the consensus estimate of $0.47. However, organic sales fell short of expectations during the quarter.

The earnings beat was primarily driven by a $48 million tariff refund, which boosted gross margin by approximately 750 basis points. Energizer reiterated expectations for a return to organic sales growth in the second half of the fiscal year, with full-year organic sales now expected to be flat, compared to previous guidance of flat to up modestly.

The company raised its full-year EBITDA and EPS guidance to the higher end of prior ranges, though the increase was smaller than the tariff benefit recorded in the quarter. The company attributed this to weaker top-line performance and a shift in timing of production credit benefits. Cash flow guidance remained unchanged.

Barclays analysts noted that "shipment timing matters far more than any reads from Nielsen data as ENR organic sales fell well short of expectations." The analysts added that "prior expectations for ~flat consumption now seem at risk."

Regarding the tariff refund, Barclays commented, "we would note that NWL last week did not record a similar benefit to gross margins, though our understanding is that Energizer has strong visibility into the probable refund amount with timing the open question."

The company did not adjust its cash flow outlook despite the tariff benefit recorded in the quarter.