Highlights

  • Garmin reported third quarter 2026 net sales of $1,986,076 thousand, with net income of $541.7 million.
  • Diluted net income per share was $2.80 in the third quarter, compared with $2.08 in the prior-year quarter.
  • Gross margin included a 160 basis point impact related to approximately $33 million in refunds of previously paid tariffs.
  • Management said it expects full-year 2026 revenue of approximately $8.15 billion and pro forma EPS of approximately $10.80.

Garmin Ltd. (NYSE:GRMN) shares were trading at USD 275.29 on October 28, 2026, down 4.86%, with a relative volume at time of 5.39. The GPS-enabled devices maker filed its Form 10-Q for the quarter ended September 26, 2026 on October 28, 2026, and management discussed an updated full-year outlook on its earnings call the same day.

Garmin is incorporated in Switzerland and lists its principal executive offices in Schaffhausen, Switzerland. The company provides wireless devices, many featuring GPS location technology, and applications for people who live an active lifestyle. It is organized in five operating segments: fitness, outdoor, aviation, marine and auto OEM. Products are sold through independent retailers, dealers, distributors and OEMs, and directly through its webshop, subscriptions and retail stores. Its fiscal year is a 52-week or 53-week period ending on the last Saturday of the calendar year.

Third Quarter Results

Net sales for the 13 weeks ended September 26, 2026 were $1,986,076 thousand, compared with $1,770,901 thousand in the 13 weeks ended September 27, 2025, an increase of 12%. Total unit sales increased by approximately 9% to 5,440, compared with 4,982.

By segment, fitness net sales were $694,328 thousand, outdoor $597,301 thousand, aviation $252,657 thousand, marine $309,878 thousand and auto OEM $131,912 thousand. Auto OEM net sales decreased 20%.

Gross profit was $1,257,768 thousand, compared with $1,046,487 thousand. Consolidated gross margin increased 420 basis points, which the filing attributes primarily to segment mix, lower product costs and a 160 basis point impact related to approximately $33 million in refunds of previously paid tariffs, of which approximately $20 million was attributable to marine.

Operating income was $611,648 thousand, compared with $456,803 thousand. The effective tax rate was 18.1%, compared with 21.2%. Net income was $541.7 million, or $2.80 per diluted share, compared with $401.6 million, or $2.08 per diluted share.

For the 39 weeks ended September 26, 2026, net sales were $5,761,658 thousand and net income was $1,488.7 million, or $7.69 per diluted share, compared with $5,120,564 thousand and $1,135.2 million, or $5.87 per diluted share.

Balance Sheet, Cash Flow and Capital

As of September 26, 2026, Garmin had approximately $4.1 billion of cash, cash equivalents and marketable securities. Cash and cash equivalents were $2,039,779 thousand, compared with $2,278,646 thousand at December 27, 2025.

Cash provided by operating activities was $1,333.4 million for the first three quarters of 2026, compared with $1,079.6 million. Cash used in investing activities was $841.3 million.

Inventory purchase obligations were $2,006.6 million. The company noted that recent global supply constraints of memory chips have increased operational complexities and costs, which it expects to unfavorably impact future gross margin. On the call, management said it paid dividends of approximately $202 million and purchased $41 million of company stock in the third quarter, with approximately $407 million remaining under its repurchase authorization.

Full-Year 2026 Outlook

On the call, management said it now estimates 2026 revenue of approximately $8.15 billion, compared with previous guidance of $8.05 billion. It expects gross margin of approximately 61%, operating margin of approximately 29% and a pro forma effective tax rate of 16.5%. It expects pro forma EPS of approximately $10.80, compared with previous guidance of $10.

Management said higher memory costs are expected to affect the fourth quarter and are included in the full-year gross margin guidance. It expects full-year free cash flow of approximately $1.1 billion and capital expenditures of approximately $500 million.

For the fourth quarter, management said it expects aviation year-over-year growth similar to the third quarter and auto OEM revenue to decrease year over year consistent with the third quarter. It said a new manufacturing facility in Thailand is on track to open and begin producing new products in the first quarter of 2027.