Garmin stock enters holiday quarter with higher 2026 outlook

Published on 11/11/2026 at 12:12 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Garmin stock traded at 258.85 euros in Lang & Schwarz trading on Wednesday. The company raised its 2026 outlook after record third-quarter results.

Record Results Meet Higher Guidance

Garmin reported record third-quarter revenue and operating income on October 28.
Management raised its 2026 revenue and pro forma earnings outlook entering the holiday season.
Higher memory costs are expected to pressure margins in the fourth quarter and into 2027.

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Garmin Ltd. reported record third-quarter operating results on Wednesday, October 28, 2026, and raised its full-year outlook as it entered the holiday selling season. The company's stock traded at 258.85 euros on Lang & Schwarz at 12:07 CET on Wednesday, November 11.

According to the Garmin Newsroom, revenue for the quarter ended September 26 rose 12 percent from the prior-year period to 1.99 billion US dollars. Operating income increased 34 percent to 612 million US dollars, while gross margin expanded to 63.3 percent and operating margin reached 30.8 percent.

Guidance Rises Into Holiday Season

Garmin's earnings-call transcript says management now expects 2026 revenue of 8.15 billion US dollars, an increase of 100 million US dollars from its previous forecast and 12 percent above the prior year. Pro forma earnings per share guidance increased to 10.80 US dollars from 10.00 US dollars.

The updated outlook also calls for a full-year gross margin of 61 percent and an operating margin of 29 percent. Management kept its pro forma tax-rate forecast at 16.5 percent. The company said strong retailer promotion plans, product backlogs and demand in fitness and outdoor products were supporting the important fourth quarter.

Garmin's third-quarter pro forma earnings per share rose 39 percent to 2.76 US dollars, while GAAP earnings per share reached 2.80 US dollars. The company attributed the margin expansion to favorable segment mix, lower product costs partly linked to a weaker Taiwan dollar and approximately 33 million US dollars in tariff refunds, according to management's call commentary.

Memory Costs Shape 2027 Risk

The stronger outlook comes with a clear profitability risk. Garmin management said higher memory and other raw-material costs will have a greater effect in the fourth quarter as lower-cost safety stock is replaced by components bought at current market prices. The company is also maintaining higher inventory levels and making prepayments to secure supplies.

The Garmin earnings-call transcript quotes Chief Executive Officer Cliff Pemble as saying that the company expects another record year of double-digit revenue and profit growth. Chief Financial Officer Douglas Boessen said higher memory costs were already included in the revised full-year margin outlook, while the 2027 margin profile would also depend on product mix, foreign exchange and the ramp of the Mercedes program.

For investors, the results point to strong demand and improved near-term execution, but they also raise the importance of gross-margin performance after the holiday quarter. Fitness and outdoor momentum may support growth, while component inflation and the lower-margin automotive program could limit the durability of current profitability.