Garmin Ltd. (NYSE:GRMN) stock climbed Wednesday after the maker of GPS navigation devices and wearable technology reported mixed third-quarter 2026 results and raised its full-year forecast.
Revenue rose 12% year over year to $1.986 billion, narrowly missing the analyst consensus estimate of $1.989 billion, according to Benzinga Pro.
Adjusted earnings reached $2.76 per share, beating analysts’ expectations of $2.40.
Third-Quarter Segment Performance
Fitness revenue climbed 16% year over year to $694.33 million, driven by strong demand for advanced wearables.
Outdoor revenue jumped 20% to $597.30 million, led by growth in adventure watches.
Aviation revenue increased 5% to $252.66 million, supported by demand for original equipment manufacturer products.
Marine revenue rose 16% to $309.88 million, reflecting broad-based growth led by sonar products.
However, Auto OEM revenue declined 20% to $131.91 million, primarily due to lower revenue from domain controllers.
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Margins and Cash Flow
Gross margin expanded to 63.3% from 59.1% a year earlier, while operating margin improved to 30.8% from 25.8%.
Garmin generated $394 million in operating cash flow and $293 million in free cash flow during the quarter.
The company paid $202 million in dividends and repurchased $41 million in shares during the quarter. As of Sept. 26, approximately $407 million remained under its $500 million share repurchase program, authorized through December 2028.
Garmin ended the quarter with $4.1 billion in cash and marketable securities.
CEO Cliff Pemble said the company delivered another quarter of record operating performance, supported by strength across markets and product categories.
Recently launched products also contributed to growth, while strong execution helped Garmin achieve a record consolidated gross margin and higher operating profitability.
Garmin Raises 2026 Forecast
Garmin raised its full-year 2026 revenue forecast to $8.15 billion from its previous forecast of $8.05 billion. The revised forecast topped analysts’ expectations of $8.093 billion.
The company also increased its adjusted earnings forecast to $10.80 per share from $10, above the consensus estimate of $10.13. Garmin cited strong year-to-date performance and continued momentum heading into the holiday shopping season.
GRMN Price Action
GRMN Price Action: Garmin shares were up 1.86% at $294.72 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo via Shutterstock
