Garmin beats third quarter profit expectations, raises guidance

Garmin, the wearable technology company, reported stronger-than-expected third-quarter earnings on Wednesday, surpassing analyst projections. The company's adjusted earnings per share came in at $2.76, outperforming the estimated $2.39 by $0.37. Revenue for the quarter totaled $1.99 billion, meeting consensus forecasts. In response to the strong results, Garmin raised its full-year guidance above Wall Street expectations.

Year-to-date revenue grew by 12% compared to the same period last year, reaching $1.77 billion. Adjusted earnings per share increased by 39% to $1.99, up from $1.99 in the third quarter of 2025. Garmin's gross margin expanded to 63.3% from 59.1%, while operating margin improved to 30.8% from 25.8%. CEO Cliff Pemble attributed the company's success to a robust performance across various markets and product categories, highlighting the impact of recently launched products.

For the fiscal year 2026, Garmin raised its guidance, projecting revenue of approximately $8.15 billion and adjusted earnings per share of $10.80, surpassing both the analyst consensus and the company's previously announced figures. The fitness segment led the company's growth, with revenue increasing by 16% to $694 million, driven by high demand for wearables.

The outdoor segment grew by 20% to $597 million, fueled by the sales of adventure watches, including the newly released fēnix 9 series. Marine revenue rose by 16% to $310 million, while aviation segment revenue increased by 5% to $253 million. The auto OEM segment declined by 20% to $132 million. Operating income reached a record high of $612 million, representing a 34% year-over-year growth.

During the quarter, Garmin generated $394 million in operating cash flow and paid dividends of $202 million.