$GRMN · GARMIN LTD
Garmin reported Q3 FY2026 results with record revenue of $1.986B (+12% YoY), record operating income of $612M (+34% YoY), and GAAP diluted EPS of $2.80 (+35% YoY). Gross margin expanded 420 bps to 63.3%, aided by $33M in tariff refunds. The company raised full-year 2026 guidance to ~$8.15B revenue and pro forma EPS of $10.80.
- Record Q3 consolidated revenue of $1.986B, up 12% YoY, with four of five segments growing double-digits.
- Gross margin expanded 420 bps to 63.3%, boosted by favorable segment mix, lower product costs, and $33M in tariff refunds.
- Record operating income of $612M, up 34% YoY; operating margin expanded to 30.8% from 25.8%.
- GAAP diluted EPS of $2.80, up 35% YoY; pro forma EPS of $2.76, up 39% YoY.
- FY2026 guidance raised: revenue ~$8.15B, pro forma EPS $10.80, gross margin 61.0%, operating margin 29.0%.
Extended-hours trading shows GRMN at $292.00, +1.02% vs the regular-session close of $289.05, indicating a positive initial reaction to the beat-and-raise quarter. The regular session had closed before the filing; the +0.92% after-hours move vs the filing-time price suggests modest upside on the $55.74B market cap name.
Garmin posted broad-based strength across four of five segments with record margins and raised full-year guidance — a rare beat-and-raise in a mixed consumer discretionary environment.
Garmin's broad-based strength across fitness (+16%), outdoor (+20%), and marine (+16%) contrasts with peers facing consumer electronics softness. The 63.3% gross margin and $4.1B cash position underscore pricing power and balance-sheet strength in the wearables/navigation space.
Auto OEM segment revenue fell 20% YoY to $132M with an operating loss of $12M, driven by domain controller declines. Inventories surged to $2.25B from $1.77B at year-end 2025, a 27% increase that bears watching for potential channel stuffing or demand softening.