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

Garmin (NYSE:GRMN) issued its quarterly earnings results on Wednesday. The scientific and technical instruments company reported $2.76 EPS for the quarter, topping the consensus estimate of $2.38 by $0.38, Zacks reports. The firm had revenue of $1.99 billion for the quarter, compared to analysts’ expectations 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% compared to the same quarter last year. During the same period in the previous year, the business earned $1.99 earnings per share.

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, f?nix 9, and LiveScope 2.
• Demand for new wearable launches is exceeding expectations, with management reporting strong initial demand and backlogs for CIRQA and f?nix 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 Trading Down 2.4%

Shares of GRMN traded down $6.58 during mid-day trading on Friday, hitting $273.36. 946,918 shares of the company traded hands, compared to its average volume of 885,041. The stock has a market capitalization of $52.68 billion, a price-to-earnings ratio of 26.23, a PEG ratio of 2.83 and a beta of 0.90. Garmin has a one year low of $186.67 and a one year high of $314.28. The business has a 50-day moving average of $282.60 and a 200 day moving average of $253.62.

Wall Street Analyst Weigh In

Several brokerages recently commented on GRMN. Weiss Ratings upgraded shares of Garmin from a “buy (b)” rating to a “buy (b+)” rating in a report on Wednesday. Arete Research initiated coverage on shares of Garmin in a report on Wednesday, October 14th. They issued a “buy” rating and a $335.00 price target for the company. JPMorgan Chase & Co. boosted their price target on shares of Garmin from $295.00 to $310.00 and gave the stock a “neutral” rating in a report on Thursday. Zacks Research cut Garmin from a “strong-buy” rating to a “hold” rating in a report on Monday, October 12th. Finally, UBS Group set a $370.00 price target on shares of Garmin in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $315.29.

Garmin News Roundup

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 Activity at Garmin

In other news, insider Cheng-Wei Wang sold 9,941 shares of Garmin stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $299.36, for a total transaction of $2,975,937.76. Following the transaction, the insider owned 29,506 shares in the company, valued at approximately $8,832,916.16. The trade was a 25.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 14.80% of the company’s stock.

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.