Garmin (NYSE:GRMN) Announces Earnings Results, Beats Expectations By $0.38 EPS

Garmin (NYSE:GRMN) issued its quarterly earnings data on Wednesday. The scientific and technical instruments company reported $2.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.38 by $0.38, Zacks reports. The company had revenue of $1.99 billion for the quarter, compared to the consensus estimate of $1.99 billion. Garmin had a net margin of 25.58% and a return on equity of 21.94%. Garmin’s revenue for the quarter was up 12.2% on a year-over-year basis. During the same period last year, the firm posted $1.99 EPS.

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

• Record third-quarter results included revenue growth of 12% to nearly $2.0 billion, operating income growth of 34% to $612 million, and pro forma EPS growth of 39% to $2.76. Gross and operating margins benefited from favorable segment mix, lower product costs, and $33 million of tariff refunds.
• Garmin raised its full-year 2026 outlook to approximately $8.15 billion in revenue and $10.80 in pro forma EPS, representing 12% and 26% growth, respectively. Fitness, Outdoor, and Marine posted strong third-quarter growth of 16%, 20%, and 16%, with robust demand for new products including CIRQA, fēnix 9, and LiveScope 2.
• Demand for new wearable launches is exceeding expectations, with management reporting strong initial demand and backlogs for CIRQA and fēnix 9. Garmin also said Garmin Connect Plus adoption and renewals are outpacing expectations, creating a potentially meaningful recurring-revenue opportunity.
• Rising memory and other component costs are expected to pressure margins beginning more significantly in the fourth quarter and into 2027. Management expects consolidated gross margins to return to a historical range, while higher inventory and supplier prepayments reduced free cash flow and lifted inventory to approximately $2.3 billion.
• Auto OEM revenue fell 20% to $132 million as domain-controller sales declined, although the operating loss narrowed to $12 million. Management expects another year-over-year decline in the fourth quarter before a major Mercedes-Benz domain-controller program is expected to drive significant growth in 2027.

Garmin Price Performance

Shares of GRMN stock opened at $273.36 on Friday. The business’s fifty day moving average price is $282.60 and its 200 day moving average price is $253.62. Garmin has a 1-year low of $186.67 and a 1-year high of $314.28. The firm has a market capitalization of $52.68 billion, a PE ratio of 26.23, a P/E/G ratio of 2.84 and a beta of 0.82.

Trending Headlines about Garmin

Here are the key news stories impacting Garmin this week:

• Positive Sentiment: Garmin reported record third-quarter results, with revenue rising 12% year over year to approximately $1.99 billion and earnings per share of $2.76, exceeding the consensus estimate of $2.38. Strong demand for wearables and fitness products helped drive the performance. Garmin’s record revenue in Q3 helped by rise in fitness products
• Positive Sentiment: Management raised its 2026 profit outlook following the strong quarter, supporting the view that Garmin’s product portfolio and wearables momentum remain healthy. Analysts cited margin gains and maintained generally favorable views of the stock. Garmin Raises Its Profit Outlook—Can the Stock Reach New Highs?
• Positive Sentiment: JPMorgan increased its Garmin price target from $295 to $310, implying potential upside from recent trading levels, although it retained a neutral rating. JPMorgan Adjusts Price Target on Garmin to $310 From $295

Insider Transactions at Garmin

In other Garmin news, insider Cheng-Wei Wang sold 9,941 shares of the firm’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $299.36, for a total value of $2,975,937.76. Following the completion of the sale, the insider owned 29,506 shares of the company’s stock, valued at approximately $8,832,916.16. This trade represents a 25.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 14.80% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on GRMN. KeyCorp reaffirmed a “sector weight” rating on shares of Garmin in a research report on Thursday. Arete Research initiated coverage on Garmin in a research note on Wednesday, October 14th. They set a “buy” rating and a $335.00 price target for the company. UBS Group set a $370.00 price target on Garmin in a report on Thursday, August 6th. Morgan Stanley lifted their price objective on shares of Garmin from $289.00 to $295.00 and gave the company an “equal weight” rating in a research report on Thursday. Finally, Tigress Financial reiterated a “strong-buy” rating on shares of Garmin in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, Garmin has a consensus rating of “Moderate Buy” and a consensus target price of $315.29.

About Garmin

Garmin Ltd. (NYSE: GRMN) designs and manufactures GPS-enabled technology and smart devices for fitness, outdoor recreation, aviation, marine, and automotive markets. Its product portfolio includes smartwatches, cycling computers, sports and activity trackers, satellite communication devices, navigation systems, and related sensors and accessories.

The company also develops aviation systems and avionics, marine chartplotters and sonar equipment, and navigation and infotainment solutions for vehicle manufacturers.