Garmin (NYSE:GRMN) Releases Earnings Results

Garmin (NYSE:GRMN) announced its quarterly earnings results on Wednesday. The scientific and technical instruments company reported $2.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.30 by $0.51, FiscalAI reports. Garmin had a net margin of 23.26% and a return on equity of 20.07%. The company had revenue of $2.02 billion during the quarter, compared to the consensus estimate of $1.93 billion. During the same period in the prior year, the business earned $2.17 earnings per share. The company’s revenue for the quarter was up 11.4% compared to the same quarter last year. Garmin updated its FY 2026 guidance to 10.000-10.000 EPS.

Here are the key takeaways from Garmin’s conference call:

• Record results and raised guidance: Second-quarter revenue rose 11% to $2.02 billion, operating income increased 30% to $616 million, and pro forma EPS grew 29% to $2.81. Garmin raised full-year 2026 guidance to approximately $8.05 billion in revenue and $10.00 in pro forma EPS.
• Fitness remained the key growth engine: Fitness revenue increased 25% to $757 million, supported by strong advanced-wearable demand. Early demand for the new screenless CIRQA wearable exceeded expectations, with Garmin reporting supply constraints and a five- to eight-week shipping backlog.
• Broad-based segment momentum continued: Marine revenue rose 14% and Aviation revenue increased 8%, while Outdoor is expected to improve in the second half as new products launch. Garmin highlighted strong aviation OEM backlogs, resilient aftermarket demand, and positive reception for its new AXIS integrated cockpit platform.
• Margin performance was unusually strong but faces cost pressures: Gross margin expanded to 62.4%, helped by favorable product mix, vertical integration, and a $21 million tariff refund. Management expects higher memory and other component costs to weigh on margins in the second half, though the company plans to mitigate the impact through pricing, sourcing, and other measures.
• Auto OEM faces a second-half downturn: Garmin expects Auto OEM revenue to decline and the segment to return to an operating loss in the back half of 2026 as BMW volumes peak, before the next major Mercedes-Benz program begins ramping in early 2027.

Garmin Stock Performance

NYSE GRMN traded down $5.19 during trading hours on Thursday, hitting $289.64. The company had a trading volume of 308,114 shares, compared to its average volume of 909,484. Garmin has a 52 week low of $186.67 and a 52 week high of $304.00. The firm has a market capitalization of $55.86 billion, a price-to-earnings ratio of 32.26, a PEG ratio of 3.00 and a beta of 0.90. The firm has a 50 day simple moving average of $240.78 and a 200 day simple moving average of $236.09.

Analysts Set New Price Targets

GRMN has been the topic of several research reports. Zacks Research cut Garmin from a “strong-buy” rating to a “hold” rating in a report on Friday, May 1st. Weiss Ratings reiterated a “buy (b)” rating on shares of Garmin in a report on Monday, June 8th. JPMorgan Chase & Co. raised their target price on Garmin from $265.00 to $285.00 and gave the stock a “neutral” rating in a research report on Thursday, April 16th. Barclays upped their price target on Garmin from $238.00 to $297.00 and gave the company an “equal weight” rating in a research report on Thursday. Finally, Morgan Stanley set a $249.00 price objective on Garmin in a research report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $281.20.

Key Stories Impacting Garmin

Here are the key news stories impacting Garmin this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Garmin reported adjusted EPS of $2.81, ahead of the approximately $2.30 consensus, while revenue rose 11.4% year over year to $2.02 billion versus estimates near $1.93 billion. Garmin announces second quarter 2026 results
• Positive Sentiment: Fitness was the key growth driver. Fitness revenue reportedly surged about 25%, supporting the view that healthy-living trends, connected devices and wearables can continue to expand Garmin’s sales and earnings. Garmin revenue increases 11% in Q2 as Fitness sales soar
• Positive Sentiment: Management raised its 2026 forecast. Garmin now expects approximately $10.00 in EPS and $8.1 billion in revenue, above prior market expectations of roughly $9.57 EPS and $8.0 billion in revenue. The higher outlook signals continued demand across its product categories. Garmin’s fitness business explodes 25%, stock surges
• Neutral Sentiment: Garmin’s acquisitions of TrainingPeaks and TrainHeroic broaden its coaching and fitness-software ecosystem, potentially adding recurring digital revenue, but the financial contribution has yet to be established.
• Negative Sentiment: Some analysts cautioned that Garmin’s rapid growth may moderate, while the stock trades at a relatively demanding valuation. Its price is above the reported median analyst target of $268.50, increasing sensitivity to any earnings slowdown.
• Negative Sentiment: Recent insider activity showed company executives selling shares without reported purchases, which may weigh modestly on sentiment, although such transactions do not necessarily indicate deteriorating business fundamentals.

Insider Transactions at Garmin

In other Garmin news, CFO Douglas G. Boessen sold 2,000 shares of Garmin stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $237.91, for a total transaction of $475,820.00. Following the transaction, the chief financial officer directly owned 26,049 shares of the company’s stock, valued at approximately $6,197,317.59. This trade represents a 7.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Joseph J. Hartnett sold 643 shares of the firm’s stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $263.57, for a total transaction of $169,475.51. Following the completion of the sale, the director directly owned 21,277 shares in the company, valued at approximately $5,607,978.89. This trade represents a 2.93% decrease in their position. The disclosure for this sale is available in the SEC filing. 14.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Garmin

Several institutional investors and hedge funds have recently modified their holdings of the stock. Corient Private Wealth LLC increased its position in shares of Garmin by 59.0% during the fourth quarter. Corient Private Wealth LLC now owns 32,562 shares of the scientific and technical instruments company’s stock valued at $6,605,000 after acquiring an additional 12,084 shares in the last quarter. Alpine Woods Capital Investors LLC boosted its stake in Garmin by 9.6% during the 4th quarter. Alpine Woods Capital Investors LLC now owns 10,209 shares of the scientific and technical instruments company’s stock valued at $2,071,000 after purchasing an additional 895 shares during the last quarter. Summit Global Investments bought a new stake in shares of Garmin in the 4th quarter worth $210,000. Vident Advisory LLC increased its holdings in shares of Garmin by 11.8% in the 4th quarter. Vident Advisory LLC now owns 13,600 shares of the scientific and technical instruments company’s stock worth $2,759,000 after purchasing an additional 1,438 shares in the last quarter. Finally, FAS Wealth Partners Inc. raised its stake in shares of Garmin by 5.4% in the fourth quarter. FAS Wealth Partners Inc. now owns 18,366 shares of the scientific and technical instruments company’s stock worth $3,725,000 after purchasing an additional 938 shares during the last quarter. 81.60% of the stock is currently owned by institutional investors.

About Garmin

Garmin Ltd. is a technology company best known for designing and manufacturing navigation, communication and information devices that leverage global positioning system (GPS) technology. The company serves a diverse set of markets including consumer fitness and wearables, automotive navigation, aviation avionics, marine electronics and outdoor handheld devices. Garmin’s products combine hardware, mapping and software services to deliver location-aware solutions for personal, recreational and professional uses.

Garmin’s product lineup includes wearable fitness and multisport watches (Forerunner, Fenix, Venu), cycling computers and accessories (Edge, Varia), handheld and handheld-mounted GPS devices for outdoor activities, automotive and portable navigation units, marine chartplotters and fishfinders, and certified avionics for fixed- and rotary-wing aircraft.