Garmin Ltd. (NYSE:GRMN) shares advanced 2.99% in pre-market trading on Wednesday after the wearable technology and navigation equipment manufacturer reported third-quarter 2026 earnings above analyst expectations and raised its full-year financial outlook.
The company reported adjusted earnings per share of $2.76, exceeding the consensus estimate of $2.39. Revenue increased 12% year over year to $1.99 billion, matching analysts’ expectations and rising from $1.77 billion in the corresponding period of 2025.
Adjusted earnings per share increased 39% from $1.99 a year earlier, supported by higher sales and improved operating margins.
Garmin’s Fitness segment reported a 16% increase in revenue to $694 million, supported by continued demand for wearable technology products.
The Outdoor segment recorded 20% revenue growth to $597 million, driven primarily by adventure watches, including the recently introduced fēnix 9 series.
Marine revenue increased 16% to $310 million, while Aviation sales rose 5% to $253 million.
In contrast, the Auto OEM segment reported a 20% decline in revenue to $132 million.
The growth across Fitness, Outdoor and Marine contributed to the company’s overall revenue increase during the quarter.
Garmin reported record operating income of $612 million, representing a 34% increase from the previous year.
Gross margin expanded to 63.3%, compared with 59.1% in the third quarter of 2025.
Operating margin also improved to 30.8% from 25.8%, reflecting higher profitability alongside revenue growth.
President and Chief Executive Officer Cliff Pemble highlighted the contribution from recently introduced products.
“We achieved another quarter of record operating results driven by strength across markets and product categories, with meaningful contributions from recently launched products,” Pemble said.
The company generated $394 million in operating cash flow during the quarter and distributed $202 million to shareholders through dividend payments.
Following the third-quarter results, Garmin increased its full-year revenue forecast to approximately $8.15 billion, exceeding the analyst consensus estimate of $8.097 billion.
The company also raised its adjusted earnings per share outlook to $10.80, compared with Wall Street expectations of $10.13.
The revised guidance reflects the company’s financial performance during the first nine months of 2026 and continued demand across several product categories.
The improvement in profitability, particularly in the Fitness and Outdoor segments, has supported the company’s higher annual earnings expectations.
Garmin’s third-quarter results showed continued revenue growth and stronger operating profitability, with adjusted earnings per share exceeding analyst forecasts.
Fitness and Outdoor remained the company’s largest reported growth contributors, while Marine and Aviation also recorded higher sales.
The improvement in gross and operating margins supported record quarterly operating income of $612 million.
Garmin’s revised full-year forecasts for revenue and adjusted earnings per share are above analyst expectations, reflecting its performance across major product categories.
Shares gained approximately 3% before the opening bell following the announcement.
Garmin stock price
| 3 hours | |
| 4 hours | |
| 6 hours | |
| 8 hours | |
| 11 hours | |
| 12 hours | |
| Oct-20 | |
| Oct-20 | |
| Oct-20 | |
| Oct-14 | |
| Oct-14 | |
| Oct-13 | |
| Oct-13 | |
| Oct-13 | |
| Oct-12 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, alerts, and much more.
Learn more about Finviz Elite