Garmin Posts Record Revenue of $1.99 Billion and Raises 2026 Forecast
Key Facts
Garmin reported results for the third quarter ended September 26, 2026, posting record consolidated revenue of $1.99 billion, up 12% year over year. Diluted earnings per share under generally accepted accounting principles were $2.80, while pro forma earnings per share reached $2.76, up 39% from the same period last year. The company also recorded record operating income of $612 million, up 34%. Gross margin was 63.3% and operating margin was 30.8%. The results were accompanied by an increase in the company’s fiscal 2026 forecast.
Revenue growth came amid mixed performance across the company’s segments. Fitness revenue rose 16% to $694 million, driven primarily by growth in wearables. Outdoor revenue increased 20% to $597 million, with adventure watches playing a major role. During the quarter, Garmin launched the fēnix 9 and fēnix 9 Pro series, and Chief Executive Cliff Pemble said newly released products contributed to the record operating results. The fēnix 9 Pro features the series’ first titanium case and its largest AMOLED display, according to an earlier company announcement.
By contrast, original equipment manufacturer automotive revenue fell 20% to $132 million. Garmin attributed the decline primarily to domain controllers. Results in the other segments showed revenue growth in fitness, outdoor, marine and aviation, while the automotive segment contracted. Pemble said new products supported quarterly performance and that the company expects another record year, with double-digit growth in revenue and earnings. The divergence places the group’s strong results alongside continued weakness in its automotive equipment business.
Garmin raised its fiscal 2026 revenue forecast to $8.15 billion, an increase of $100 million from its previous guidance. It also raised its pro forma earnings-per-share forecast to $10.80, an increase of $0.80. The guidance includes an expected gross margin of 61% and an operating margin of 29%, with a tax rate of 16.5%. Pemble said the company expects another record year with double-digit growth in revenue and earnings. The new forecast follows the increases in revenue and operating income recorded during the quarter.
Management warned that higher memory and raw material costs could put pressure on margins in the future. It said consolidated gross margin could return to its historical range in 2027, while emphasizing that it is still too early to provide a full-year forecast for that year. In premarket trading on October 28, an early report cited a 2.99% gain in the stock. But a later report the same day said it had fallen 5.99% to $272, compared with a previous close of $289.34 on October 27. The two readings reflect a change in the stock’s movement during premarket trading after the results were announced.