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:
(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
[email protected]
[email protected]
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.
SOURCE Garmin Ltd.