Garmin Q3 profit beats estimates on margin expansion; raises outlook
Overview
Switzerland-based GPS device maker's Q3 revenue rose 12% yr/yr, meeting analyst expectations
Q3 operating income and net income both beat analyst estimates
Company raised full-year 2026 guidance after record Q3 results
Outlook
Garmin raises 2026 revenue guidance to $8.15 bln
Company now expects 2026 pro forma EPS of $10.80
Garmin sees 2026 gross margin at 61.0% and operating margin at 29.0%
Result Drivers
PRODUCT AND MARKET STRENGTH - Co said broad-based demand and new product launches contributed to record results, per CEO Cliff Pemble
MARGIN EXPANSION - Higher gross margin attributed to favorable segment mix, lower product cost, and tariff refunds
SEGMENT GROWTH - Fitness, outdoor, and marine segments saw double-digit revenue growth, led by wearables, adventure watches, and sonar products
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Meet | $1.99 bln | $1.99 bln (4 Analysts) |
Q3 Pro forma EPS | $2.76 | ||
Q3 EPS | $2.80 | ||
Q3 Net Income | Beat | $541.66 mln | $468.43 mln (4 Analysts) |
Q3 Gross Margin | 63.30% | ||
Q3 Operating income | Beat | $611.65 mln | $535.03 mln (4 Analysts) |
Q3 Pretax Profit | $661.12 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy."
Wall Street's median 12-month price target for Garmin Ltd. is $293.00, about 1.3% above its October 27 closing price of $289.34
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 24 three months ago
Reuters Recommended Reads
Oct 27 - Switzerland's INFICON Q3 sales jump, lifts FY outlook on firm semiconductor demand
Oct 27 - Logitech beats profit forecast as sales of gaming, conferencing products rise
Oct 27 - Novartis slightly misses Q3 net sales estimates, but tops core EPS view
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)