Garmin announces third quarter 2026 results

Company reports record third quarter operating results and raises full year guidance SCHAFFHAUSEN, Switzerland, Oct. 28, 2026 /PRNewswire/ -- Garmin ® Ltd. (NYSE: GRMN), today announced results for the third quarter ended September 26, 2026. Highlights include: Record consolidated revenue of $1.99 billion, a 12% increase compared to the prior year quarter Gross and operating margins expanded to 63.3% and 30.8% respectively, compared to the prior year quarter Record operating income of $612 million, a 34% increase compared to the prior year quarter GAAP EPS of $2.80 and pro forma EPS (1) of $2.76, representing a 39% increase in pro forma EPS compared to the prior year quarter Named 2026 Manufacturer of the Year by the National Marine Electronics Association for the 12th consecutive year, and received six Product of Excellence awards Launched the fēnix ® 9 and fēnix 9 Pro adventure watch series, expanding our flagship performance smartwatch lineup Recently announced the delivery of our 1,000th G1000 ® integrated flight deck retrofit for King Air aircraft making this one of the most successful retrofit flight deck programs in aviation history Announced that more than 2,500 aircraft are equipped with the revolutionary Garmin Autoland system, the world's first and only certified autonomous system designed to activate during an emergency to safely fly and land an aircraft without human interaction (In thousands, except per share information) 13-Weeks Ended 39-Weeks Ended September 26, September 27, YoY September 26, September 27, YoY 2026 2025 Change 2026 2025 Change Net sales $ 1,986,076 $ 1,770,901 12 % $ 5,761,658 $ 5,120,564 13 % Fitness 694,328 601,013 16 % 1,997,974 1,591,159 26 % Outdoor 597,301 497,598 20 % 1,497,571 1,426,451 5 % Aviation 252,657 240,445 5 % 785,248 712,926 10 % Marine 309,878 267,005 16 % 1,006,262 885,704 14 % Auto OEM 131,912 164,840 (20) % 474,603 504,324 (6) % Gross profit 1,257,768 1,046,487 20 % 3,562,078 2,998,043 19 % Gross margin % 63.3 % 59.1 % 61.8 % 58.5 % Operating Income 611,648 456,803 34 % 1,658,821 1,261,922 31 % Operating income % 30.8 % 25.8 % 28.8 % 24.6 % GAAP diluted EPS $ 2.80 $ 2.08 35 % $ 7.69 $ 5.87 31 % Pro forma diluted EPS (1) $ 2.76 $ 1.99 39 % $ 7.65 $ 5.77 33 % (1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma diluted EPS Executive Overview from Cliff Pemble, President and Chief Executive Officer: "We achieved another quarter of record operating results driven by strength across markets and product categories, with meaningful contributions from recently launched products. Our results were further enhanced by strong operational execution resulting in record consolidated gross margin and impressive operating profit leverage. We are raising our 2026 outlook based on the results we have achieved so far and the momentum we are experiencing as we enter the important holiday selling season." - Cliff Pemble, President and Chief Executive Officer of Garmin Ltd. Fitness: Revenue from the fitness segment increased 16% in the third quarter with growth led by strong demand for wearables. Gross and operating margins were 63% and 33%, respectively, resulting in $231 million of operating income. During the quarter, we launched the CIRQA™ Smart Band, a screenless wearable offering rich wellness and fitness insights that expands our addressable market for wellness devices. In addition, we recently announced the next generation of Edge ® cycling computers with the Edge 1060 featuring a built-in microphone and speaker for hands-free voice control capability and the Edge Explore 3 series, an easy-to-use bike computer for riders of all levels. Outdoor: Revenue from the outdoor segment increased 20% in the third quarter with growth primarily driven by adventure watches. Gross and operating margins were 68% and 39%, respectively, resulting in $233 million of operating income. During the quarter, we launched the fēnix 9 and fēnix 9 Pro series, with an all-titanium watch case option and the largest available AMOLED screen in our flagship adventure watch lineup. Also during the quarter, we launched the all-new Garmin Drive™ GPS navigators with high-resolution ultrawide format displays and an elevated user experience. Aviation: Revenue from the aviation segment increased 5% in the third quarter with growth primarily driven by OEM product categories. Gross and operating margins were 78% and 26%, respectively, resulting in $66 million of operating income. During the quarter, we unveiled the G2000 ® PRIME, bringing PRIME flight deck functionality to the high-performance piston and electric aircraft market. Also during the quarter, we announced the certification of an all-glass retrofit cockpit for the original Cessna CitationJet. Pilatus Aircraft and Epic Aircraft recently announced the certification of Garmin Autoland on the PC-12 Pro and the e1000 airplanes, respectively. We also made important updates to Garmin Pilot™, adding SmartCharts coverage for Canada and Mexico, as well as Mobile Clearance Delivery which allows pilots to obtain clearances electronically through the Garmin Pilot app. Marine: Revenue from the marine segment increased 16% in the third quarter with broad-based growth across multiple categories, led by the sonar product category. Gross and operating margins were 64% and 30%, respectively, resulting in $94 million of operating income. During the quarter, we launched the next generation LiveScope™ 2, delivering live sonar images with improved range and clarity. Also during the quarter, we expanded our sailboat product lineup with the GMI™ 40 instrument display and the SmartDrive™ brushless linear steering actuator. We also launched the JL Audio A60 head unit series, and M200 speaker systems. Auto OEM: Revenue from the auto OEM segment decreased 20% during the third quarter primarily due to domain controllers. Gross margin was 16% and we recorded an operating loss of $12 million in the quarter. Additional Financial Information: The consolidated third quarter gross margin expanded 420 basis points to 63.3%, compared to the prior year quarter, with higher margins across all segments. The consolidated gross margin increase was primarily attributable to favorable segment mix, lower product cost, and approximately $33 million in refunds of previously paid tariffs. Total operating expenses in the third quarter were $646 million, a 10% increase over the prior year. Research and development increased 9% driven primarily by personnel-related costs. Selling, general and administrative expenses increased 10%, driven primarily by personnel-related costs and advertising expenses. The effective tax rate in the third quarter was 18.1%, compared to an effective tax rate of 21.2% in the prior year quarter. The decrease in the effective tax rate is primarily driven by an increase in expected U.S. deductions due to certain provisions of the U.S. tax legislation enacted in 2025 that became effective in 2026. In the third quarter of 2026, we generated operating cash flows of $394 million and free cash flow (1) of $293 million. We paid a quarterly dividend of $202 million and repurchased $41 million of the Company's shares within the quarter, leaving approximately $407 million remaining as of September 26, 2026 in the $500 million share repurchase program authorized through December 2028. We ended the quarter with cash and marketable securities of approximately $4.1 billion. (1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma effective tax rate and free cash flow. Fiscal Year 2026 Guidance: Based on our performance in the first three quarters of 2026 and our positive outlook for the remainder of the year, we are raising our full year 2026 guidance. We now anticipate revenue of approximately $8.15 billion and pro forma EPS of $10.80 based on gross margin of 61.0%, operating margin of 29.0% and a full year tax rate of 16.5% (see attached discussion on Forward-looking Financial Measures). Dividend Recommendation: At the 2026 annual shareholders' meeting, Garmin shareholders, in accordance with Swiss corporate law, approved a cash dividend in the total amount of $4.20 per share, payable in four equal installments on dates to be determined by the Board in its discretion. The first and second payments were made on June 26, 2026 and September 25, 2026. The Board of Directors has established December 24, 2026, as the payment date for the next dividend installment of $1.05 per share with a record date of December 11, 2026. The Board currently anticipates the scheduling of the remaining quarterly dividend installment as follows: Dividend Date Record Date $'s per share March 26, 2027 March 12, 2027 $1.05 Webcast Information/Forward-Looking Statements: The information for Garmin Ltd.'s earnings call is as follows: When: Wednesday, October 28, 2026 10:30 a.m. Eastern Where: Join a live stream of the call at the following link https://investors.garmin.com/news-and-events/default.aspx An archive of the live webcast will be available until October 27, 2027 on the Garmin website at www.garmin.com. To access the replay, click on the Investors link and click over to the News & Events page. This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as "anticipates," "would," "may," "expects," "estimates," "plans," "intends," "projects," and other words or phrases with similar meanings. Any statements regarding the Company's expected fiscal 2026 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company's expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, tariffs and other global trade related impacts, potential future acquisitions, share repurchase programs, currency movements, expenses, pricing, new product launches, market reach, statements relating to possible future dividends, and the Company's plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 27, 2025 filed by Garmin with the Securities and Exchange Commission (Commission file number 001-41118). A copy of Garmin's 2025 Form 10-K can be downloaded from https://investors.garmin.com/financials/sec-filings/default.aspx. All information provided in this release and in the attachments is as of September 26, 2026. We undertake no duty to update this information unless required by law. This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments. Garmin, the Garmin logo, the Garmin delta, Edge, fēnix, G1000, G2000, and JL Audio are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. CIRQA, Garmin Drive, Garmin Pilot, SmartDrive, GMI, and LiveScope are trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved. Investor Relations Contact: Media Relations Contact: Teri Seck Krista Klaus +1 913 397 8200 +1 913 397 8200 investor.relations@garmin.com media.relations@garmin.com Garmin Ltd. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share information) 13-Weeks Ended 39-Weeks Ended September 26, September 27, September 26, September 27, 2026 2025 2026 2025 Net sales $ 1,986,076 $ 1,770,901 $ 5,761,658 $ 5,120,564 Cost of goods sold 728,308 724,414 2,199,580 2,122,521 Gross profit 1,257,768 1,046,487 3,562,078 2,998,043 Research and development expense 312,916 286,464 912,673 831,247 Selling, general and administrative expenses 333,204 303,220 990,584 904,874 Total operating expense 646,120 589,684 1,903,257 1,736,121 Operating income 611,648 456,803 1,658,821 1,261,922 Other income (expense): Interest income 36,357 32,085 110,504 94,316 Foreign currency gains 9,788 20,334 10,417 21,582 Other income 3,329 598 4,970 1,329 Total other income (expense) 49,474 53,017 125,891 117,227 Income before income taxes 661,122 509,820 1,784,712 1,379,149 Income tax provision 119,461 108,205 296,052 243,943 Net income $ 541,661 $ 401,615 $ 1,488,660 $ 1,135,206 Net income per share: Basic $ 2.81 $ 2.09 $ 7.72 $ 5.90 Diluted $ 2.80 $ 2.08 $ 7.69 $ 5.87 Weighted average common shares outstanding: Basic 192,836 192,464 192,782 192,510 Diluted 193,617 193,533 193,556 193,551 Garmin Ltd. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In thousands) September 26, 2026 December 27, 2025 Assets Current assets: Cash and cash equivalents $ 2,039,779 $ 2,278,646 Marketable securities 299,693 459,202 Accounts receivable, net 1,137,167 1,253,015 Inventories 2,251,741 1,772,257 Deferred costs 12,508 17,538 Prepaid expenses and other current assets 742,631 467,558 Total current assets 6,483,519 6,248,216 Property and equipment, net 1,496,143 1,375,348 Operating lease right-of-use assets 207,636 196,183 Noncurrent marketable securities 1,727,086 1,396,929 Deferred income tax assets 704,893 718,094 Noncurrent deferred costs 3,918 4,373 Goodwill 978,557 760,241 Other intangible assets, net 270,875 198,362 Other noncurrent assets 121,156 95,923 Total assets $ 11,993,783 $ 10,993,669 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 500,671 $ 347,493 Salaries and benefits payable 256,762 228,267 Accrued warranty costs 76,874 72,921 Accrued sales program costs 113,724 153,193 Other accrued expenses 271,233 257,651 Deferred revenue 119,858 105,646 Income taxes payable 384,351 381,549 Dividend payable 404,779 173,351 Total current liabilities 2,128,252 1,720,071 Deferred income tax liabilities 116,224 109,701 Noncurrent income taxes payable 3,325 3,596 Noncurrent deferred revenue 22,400 22,277 Noncurrent operating lease liabilities 173,491 164,835 Other noncurrent liabilities 565 625 Stockholders' equity: Common shares, $0.10 par value (194,901 and 194,901 shares authorized and issued; 192,757 and 192,620 shares outstanding) 19,490 19,490 Additional paid-in capital 2,425,759 2,368,670 Treasury shares (2,144 and 2,281 shares) (468,628) (406,423) Retained earnings 7,648,939 6,970,182 Accumulated other comprehensive income (loss) (76,034) 20,645 Total stockholders' equity 9,549,526 8,972,564 Total liabilities and stockholders' equity $ 11,993,783 $ 10,993,669 Garmin Ltd. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) 39-Weeks Ended September 26, 2026 September 27, 2025 Operating Activities: Net income $ 1,488,660 $ 1,135,206 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 122,519 115,633 Amortization 26,692 26,874 (Gain) loss on sale or disposal of property and equipment (639) 375 Unrealized foreign currency gains (7,347) (37,606) Deferred income taxes 33,523 19,324 Stock compensation expense 133,526 125,003 Realized loss on marketable securities 587 857 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable, net of allowance for doubtful accounts 102,946 68,818 Inventories (488,774) (324,880) Other current and noncurrent assets (266,274) (18,466) Accounts payable 156,023 (7,531) Other current and noncurrent liabilities 5,978 1,944 Deferred revenue 3,642 (11,603) Deferred costs 5,486 8,703 Income taxes 16,851 (23,077) Net cash provided by operating activities 1,333,399 1,079,574 Investing activities: Purchases of property and equipment (294,982) (146,273) Purchase of marketable securities (632,001) (724,091) Redemption of marketable securities 403,842 531,804 Net payments for acquisitions (320,588) (175,655) Other investing activities, net 2,388 387 Net cash used in investing activities (841,341) (513,828) Financing activities: Dividends (578,474) (490,919) Proceeds from issuance of treasury shares related to equity awards 31,425 29,065 Purchase of treasury shares related to equity awards (47,069) (33,476) Purchase of treasury shares under share repurchase plan (123,206) (130,149) Net cash used in financing activities (717,324) (625,479) Effect of exchange rate changes on cash and cash equivalents (13,570) 53,125 Net decrease in cash, cash equivalents, and restricted cash (238,836) (6,608) Cash, cash equivalents, and restricted cash at beginning of period 2,279,360 2,080,154 Cash, cash equivalents, and restricted cash at end of period $ 2,040,524 $ 2,073,546 Garmin Ltd. and Subsidiaries Net Sales, Gross Profit and Operating Income by Segment (Unaudited) (In thousands) Fitness Outdoor Aviation Marine Auto OEM Total 13-Weeks Ended September 26, 2026 Net sales $ 694,328 $ 597,301 $ 252,657 $ 309,878 $ 131,912 $ 1,986,076 Gross profit 434,456 406,731 196,421 198,442 21,718 1,257,768 Operating income (loss) 230,634 233,043 65,835 93,994 (11,858) 611,648 13-Weeks Ended September 27, 2025 Net sales $ 601,013 $ 497,598 $ 240,445 $ 267,005 $ 164,840 $ 1,770,901 Gross profit 362,849 329,749 180,708 148,238 24,943 1,046,487 Operating income (loss) 193,600 169,734 60,768 49,396 (16,695) 456,803 39-Weeks Ended September 26, 2026 Net sales $ 1,997,974 $ 1,497,571 $ 785,248 $ 1,006,262 $ 474,603 $ 5,761,658 Gross profit 1,253,701 1,016,992 595,702 604,781 90,902 3,562,078 Operating income (loss) 665,293 515,416 208,936 284,598 (15,422) 1,658,821 39-Weeks Ended September 27, 2025 Net sales $ 1,591,159 $ 1,426,451 $ 712,926 $ 885,704 $ 504,324 $ 5,120,564 Gross profit 947,661 936,713 534,082 496,509 83,078 2,998,043 Operating income (loss) 468,943 456,402 172,508 199,181 (35,112) 1,261,922 Garmin Ltd. and Subsidiaries Net Sales by Geography (Unaudited) (In thousands) 13-Weeks Ended 39-Weeks Ended September 26, September 27, YoY September 26, September 27, YoY 2026 2025 Change 2026 2025 Change Net sales $ 1,986,076 $ 1,770,901 12 % $ 5,761,658 $ 5,120,564 13 % Americas 913,081 795,624 15 % 2,714,100 2,419,371 12 % EMEA 778,021 692,557 12 % 2,200,935 1,938,912 14 % APAC 294,974 282,720 4 % 846,623 762,281 11 % Americas - North America & South America; EMEA - Europe, Middle East & Africa; APAC - Asia Pacific & Australian Continent Non-GAAP Financial Information To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma effective tax rate, pro forma net income (earnings) per share and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below. The tables below provide reconciliations between the GAAP and non-GAAP measures. Pro forma effective tax rate The Company's income tax expense is occasionally impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the first three quarters of 2026 and 2025 there were no such discrete tax items identified. Pro forma net income (earnings) per share Management believes net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure to permit a consistent comparison of the Company's performance between periods. (In thousands, except per share information) 13-Weeks Ended 39-Weeks Ended September 26, September 27, September 26, September 27, 2026 2025 2026 2025 GAAP net income $ 541,661 $ 401,615 $ 1,488,660 $ 1,135,206 Foreign currency gains / losses (1) (9,788) (20,334) (10,417) (21,582) Tax effect of foreign currency gains / losses (2) 1,769 4,316 1,728 3,817 Pro forma net income $ 533,642 $ 385,597 $ 1,479,971 $ 1,117,441 GAAP net income per share: Basic $ 2.81 $ 2.09 $ 7.72 $ 5.90 Diluted $ 2.80 $ 2.08 $ 7.69 $ 5.87 Pro forma net income per share: Basic $ 2.77 $ 2.00 $ 7.68 $ 5.80 Diluted $ 2.76 $ 1.99 $ 7.65 $ 5.77 Weighted average common shares outstanding: Basic 192,836 192,464 192,782 192,510 Diluted 193,617 193,533 193,556 193,551 (1) Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at a given legal entity. However, there is minimal cash impact from such foreign currency gains and losses. (2) The tax effect of foreign currency gains was calculated using the effective tax rates of 18.1% and 16.6% for the 13-weeks and 39-weeks ended September 26, 2026, respectively, and 21.2% and 17.7% for the 13-weeks and 39-weeks ended September 27, 2025, respectively. Free cash flow Management believes free cash flow is an important liquidity measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property and equipment. Management believes excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company's operations and allows more accurate comparisons of the Company's results between periods. This metric may also be useful to investors but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is net cash provided by operating activities. (In thousands) 13-Weeks Ended 39-Weeks Ended September 26, September 27, September 26, September 27, 2026 2025 2026 2025 Net cash provided by operating activities $ 393,855 $ 485,616 $ 1,333,399 $ 1,079,574 Less: purchases of property and equipment (100,587) (60,483) (294,982) (146,273) Free cash flow $ 293,268 $ 425,133 $ 1,038,417 $ 933,301 Forward-looking Financial Measures The forward-looking measures in our 2026 guidance include certain economic assumptions such as foreign currency exchange rates and tariffs which are fluid and can rapidly change favorably or unfavorably. The forward-looking financial measures in our 2026 guidance provided above do not consider the potential future net effect of foreign currency exchange gains and losses, certain discrete tax items and any other impacts that may be identified as pro forma adjustments in calculating the non-GAAP measures described above. The estimated impact of foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact on diluted net income per share of foreign currency gains and losses, net of tax effects, was $0.04 per share for the 39-week period ended September 26, 2026. At this time, management is unable to determine whether or not significant discrete tax items will occur in fiscal 2026, estimate the impact of any such items, or anticipate the impact of any other events that may be considered in the calculation of non-GAAP financial measures. View original content to download multimedia:https://www.prnewswire.com/news-releases/garmin-announces-third-quarter-2026-results-302921655.html SOURCE Garmin Ltd.