Garmin Ltd.

(New York Stock Exchange)
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Bullish +65

Garmin stock trades above Xetra close after higher 2026 outlook

Earnings report Guidance raised AI-generated analysis

πŸ“ˆ Garmin reported record Q3 revenue of $1.99 billion, up 12% year over year.

πŸ’° Operating income jumped 34% to $612 million driven by strong core business demand.

πŸƒ Fitness segment revenue grew 16% to $694.3 million in the third quarter.

⛰️ Outdoor business delivered a robust 20% revenue increase to $597.3 million.

🌊 Marine revenue rose 16% to $309.9 million, contributing to overall growth.

πŸš— Auto OEM segment remains a weak spot with revenue falling 20% and an operating loss of $11.9 million.

πŸ’Ή Company raised full-year 2026 revenue outlook to approximately $8.15 billion.

πŸ“Š Raised pro forma EPS guidance to $10.80 for the fiscal year 2026.

⚠️ Higher memory costs identified as a specific margin risk for the holiday season.

πŸ“ˆ Stock traded at 260.30 euros, up 2.56% above the previous Friday close.

🏭 Gross margin expected to remain at 61.0% despite cost pressures.

πŸ“‰ Operating margin guidance set at 29.0% for the full year.

Bullish Signals
  • Garmin reported record third-quarter revenue of $1.99 billion, a 12% increase year over year, driven by strong demand in fitness, outdoor, and marine segments.
  • Operating income surged 34% to $612 million, significantly outpacing revenue growth and demonstrating improved profitability efficiency.
  • The company raised its full-year 2026 revenue guidance to approximately $8.15 billion following the exceptional quarterly performance.
  • Pro forma diluted earnings per share were raised to $10.80 for fiscal year 2026, reflecting strong investor confidence in future profitability.
  • The outdoor business delivered a standout 20% revenue growth to $597.3 million, highlighting the strength of its core consumer electronics portfolio.
Risk Factors
  • The automotive OEM segment underperformed significantly with revenue declining 20% to $131.9 million and recording an operating loss of $11.9 million.
  • Rising memory costs are explicitly flagged as a margin risk that could impact profitability during the critical holiday selling season.
  • The company noted that Q3 gross margins benefited from product mix and tariff refunds, suggesting underlying cost pressures may be higher without these one-time factors.
Full Analysis
Garmin Ltd. reported record third-quarter operating results, driving a significant revision to its full-year 2026 outlook following strong performance in its core businesses. The company announced consolidated revenue of $1.99 billion for the quarter ended September 26, representing a 12% year-over-year increase, while operating income surged 34% to $612 million. Strong demand across fitness, outdoor, and marine segments fueled this growth, with revenues rising by 16%, 20%, and 16% respectively. However, the automotive OEM segment continued to underperform, posting a revenue decline of 20% and an operating loss of $11.9 million, highlighting a divergence in business unit performance. Looking ahead, Garmin raised its full-year 2026 guidance to approximately $8.15 billion in revenue with pro forma diluted earnings per share of $10.80. The company maintains gross margin expectations at 61.0% and operating margins at 29.0%, though it explicitly flagged rising memory costs as a key margin risk entering the holiday selling season. Shares traded above their Xetra close on November 9, reflecting investor optimism regarding the robust quarterly data and elevated guidance. The market reaction underscores confidence in the company's core growth drivers despite the noted headwinds in the automotive sector and potential cost pressures.