$GRMN · GARMIN LTD
Garmin filed its 10-Q for Q3 FY2026 (13 weeks ended September 26, 2026), reporting net sales of $1.986B (+12.2% YoY), net income of $541.7M (+34.9% YoY), and diluted EPS of $2.80 versus $2.08 in the prior-year quarter. Gross margin expanded to 63.3% and operating margin reached 30.8%, both reflecting strong operating leverage. The balance sheet shows $2.04B in cash and equivalents against $2.13B in current liabilities, with inventories rising to $2.25B.
- Q3 revenue of $1.986B grew 12.2% YoY, with gross margin expanding to 63.3%.
- Operating income jumped 33.9% YoY to $611.6M; operating margin reached 30.8%.
- Net income rose 34.9% YoY to $541.7M; diluted EPS of $2.80 vs $2.08 a year ago.
- Inventories surged to $2.25B from $1.77B at year-end, a 27% increase.
- 92% of available-for-sale securities were in an unrealized loss position as of quarter-end.
Extended-hours trading shows GRMN at $298.90, up 3.41% vs the regular-session close of $289.05, indicating a positive initial reaction to the strong Q3 beat. Markets were closed at filing time; the regular session has not yet priced these results.
Garmin's 35% net income growth and 30.8% operating margin demonstrate exceptional execution across all five segments, reinforcing its premium positioning in a $55.7B market-cap consumer tech name.
Garmin's 63.3% gross margin and 30.8% operating margin continue to lead the consumer electronics space, reflecting pricing power across fitness, outdoor, aviation, and marine segments that peers like Fitbit/Google and Apple cannot easily replicate in dedicated GPS/avionics.
Inventory build to $2.25B (+27% since year-end) raises risk of discounting or write-downs if demand softens. The $52.2M in unrealized losses on the $1.89B securities portfolio (92% underwater) could pressure other comprehensive income if rates stay elevated.