EarningsQ3 2026 Earnings Report
MX:GRMNN Q3 2026 EPS Results
Actual EPS$52.11
Consensus EPS$45.58
Beat/MissBeat by +$6.53
One Year Ago EPS$37.58
MX:GRMNN Q3 2026 Revenue Results
Actual Revenue$37.50B
Expected Revenue$37.55B
Beat/MissMissed by -$48.60M
YoY Revenue Growth+12.15%
Earnings Announcement Details
QuarterQ3 2026
Date10/28/2026
TimeBefore Open
Conference CallWednesday, October 28, 2026
MX:GRMNN Upcoming Earnings
Garmin's next earnings date is estimated for February 24, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:GRMNN Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, characterized by record third-quarter results, double-digit growth in the fitness, outdoor, and marine segments, expanded profitability, raised full-year revenue and EPS guidance, strong product demand, and multiple aviation milestones. The main challenges were higher memory and component costs, elevated inventory and lower free cash flow, declining Auto OEM revenue, difficult China market conditions, and a softer marine market. Overall, the highlights significantly outweighed the lowlights.Company Guidance
Strong Demand for CIRQL and Fitness Products
The screenless CIRQL Smart Ring launched with very strong initial demand and positive customer feedback, although Garmin was still catching up on demand. The company also introduced the Edge 1050 with a built-in microphone and speaker for hands-free voice control and the Edge Explore 3 for riders of all levels.
Outdoor Segment Growth and Fenix 9 Momentum
Outdoor revenue increased 20% to $597 million, primarily driven by strong demand for adventure watches following the Fenix 9 launch. Gross margin expanded to 68%, operating margin to 39%, and operating income reached $233 million. Garmin expects fourth-quarter momentum to continue, primarily driven by the Fenix 9 series, with improved full-year growth rates compared with 2025.
Successful Outdoor Product Launches
Garmin launched the Fenix 9 and Fenix 9 Pro series with an all-titanium watch case option and the largest available AMOLED screen in its flagship adventure watch lineup. It also launched Garmin Drive Navigators with high-resolution ultra-wide displays and an elevated user experience.
Aviation Milestones and Product Expansion
Aviation revenue increased 5% to $253 million, primarily driven by OEM product categories. Gross margin expanded to 78%, operating margin to 26%, and operating income reached $66 million. The G1000 integrated flight deck surpassed 1,000 systems in the field, while more than 2,500 aircraft are now equipped with Garmin Autoland across more than 15 aircraft models.
New Aviation Certifications and Offerings
Pilatus Aircraft and Epic Aircraft announced certification of Garmin Autoland on the PC-12 and E1000 airplanes. Garmin introduced the G2000 PRIME for the high-performance piston and electric aircraft market, certified an all-glass retrofit cockpit for the original Cessna Citation Jet, and added Smart Charts coverage for Canada and Mexico plus mobile clearance delivery to Garmin Pilot.
Marine Segment Growth and Industry Recognition
Marine revenue increased 16% to $310 million, with broad-based growth led by sonar products following the launch of LiveScope Plus. Gross margin expanded to 64%, operating margin to 30%, and operating income reached $94 million. Garmin was named Manufacturer of the Year by the National Marine Electronics Association for the 12th consecutive year and received six Product of Excellence awards.
Marine Product Line Expansion
Garmin expanded its sailboat lineup with the GMI 40 instrument display and smart drive steering actuator, and launched the JL Audio M6 600 head unit series and M200 speaker system. LiveScope Plus was described as offering improved range and unprecedented image clarity.
Regional Growth Across All Three Regions
Garmin achieved growth in all three geographic regions during the third quarter: Americas increased 15%, EMEA increased 12%, and APAC increased 4%.
Strong Wearables Demand and User Expansion
Fitness registrations outpaced sell-in, and management said demand and pull-through at the registration level were very strong. New-user demand was described as very strong outside the Fenix line, particularly for CIRQL, Vivoactive, and entry-level running products including the Forerunner 165 and 55.
Connect Plus Outperformed Expectations
Garmin Connect Plus grew faster than the underlying segments that can benefit from it. Renewals and commitments after free trial periods were described as very strong, and customers were also signing up for Connect Plus to obtain more functionality from CIRQL. Garmin said it already offers features such as nutrition through Connect Plus and has a long-term roadmap to expand the service.
Record Third-Quarter Financial Results
Garmin reported third-quarter revenue of $1.186 billion, up 12% year over year and described as another quarter of record-breaking financial results. Gross margin was 63.3%, up 20 basis points, operating income increased 34% to $612 million, operating margin expanded to 30.8%, up 100 basis points, and pro forma EPS increased 39% to $2.76.
Vertical Integration and Scale Supported Execution
Management said Garmin's vertical integration and operating scale improved flexibility, component sourcing, efficiency, and its ability to serve lower-volume businesses such as aviation. Premium products with desirable features also contributed to higher margins as they became a larger part of the mix.
Thailand Manufacturing Facility on Track
Garmin said its new Thailand facility is on track to begin producing new products in the first quarter of 2027. Management stated that additional capacity is needed because volumes have reached current capacity, and costs will flow through the income statement once the facility enters production.
Strong Full-Year Guidance Increase
Garmin raised full-year 2026 revenue guidance to approximately $8.15 billion from $8.05 billion, representing a 12% increase over the prior year. Full-year gross margin is expected to be approximately 61%, operating margin approximately 29%, pro forma EPS approximately $10.80 versus prior guidance of $10.00, and pro forma EPS growth is expected to be 26% over the prior year.
Margin Expansion Supported by Mix and Product Costs
Consolidated gross and operating margins expanded primarily due to favorable segment mix and lower product costs, including benefits from the weakening Taiwan dollar. Garmin also recognized $33 million of tariff refunds in the third quarter, while management said gross margin performance remained impressive even excluding that benefit.
Fitness Delivered Record Growth
Fitness revenue increased 16% to $694 million, a new third-quarter record, primarily driven by broad-based wearable growth. Gross margin expanded to 63%, operating margin to 33%, and operating income reached $231 million. Garmin expects fitness to be the strongest contributor to full-year consolidated growth.
Cash Position and Shareholder Returns
Garmin ended the quarter with approximately $4.1 billion in cash and marketable securities. It paid approximately $202 million in dividends and purchased $41 million of company stock during the quarter, with approximately $407 million remaining under the share repurchase authorization through December 2028.
Expected Mercedes-Benz Domain Controller Opportunity
Garmin expects the launch of its next major domain controller program with Mercedes-Benz to drive significant growth in 2027. Management said the ramp is expected early in the year but will depend on Mercedes-Benz's model-year direction, orders, and supply requirements.
MX:GRMNN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed