The company announced record third-quarter operating results and raised its full-year guidance.
Schaffhausen, Switzerland, October 28, 2026 /PRNewswire/ — Garmin Ltd. (NYSE: GRMN) today announced its third-quarter results for the period ended September 26, 2026.
Key highlights include:
- Combined revenue reached a record $1.99 billion, a 12% increase year-over-year.
- Gross profit margin and operating profit margin expanded to 63.3% and 30.8%, respectively, higher than the same period last year.
- Operating profit reached a record $612 million, a 34% increase year-over-year.
- GAAP earnings per share were $2.80, and pro forma earnings per share were $2.76; pro forma earnings per share increased by 39% year-over-year.
- Named Manufacturer of the Year for 2026 by the National Marine Electronics Association for the 12th consecutive year, with six Product Excellence Awards.
- Launch the fenix 9 and fenix 9 Pro expedition watch series, expanding the flagship high-performance smartwatch lineup.
- The recent delivery of the 1,000th G1000 integrated flight deck upgrade system for King Air aircraft makes it one of the most successful flight deck retrofit programs in aviation history.
- Announced that over 2,500 aircraft are now equipped with the Garmin Autoland system—the world’s first and only certified autonomous system designed to automatically take control, safely fly, and land the aircraft without human intervention in an emergency.
Chief Executive Officer Cliff Pemble stated in the executive summary: “Driven by strong performance across multiple markets and product categories, we delivered another record-breaking quarterly operating performance, with recently launched products making significant contributions. Strong operational execution further enhanced results, setting a new record for consolidated gross margin and delivering excellent operating profit leverage. Based on our year-to-date performance and the momentum heading into the key holiday sales season, we have raised our 2026 outlook.”
Fitness business
In the third quarter, revenue from the fitness business increased by 16%, primarily driven by strong demand for wearable devices. The gross margin and operating margin were 63% and 33%, respectively, with an operating profit of $231 million. During the quarter, the company launched the CIRQA smart band, a screenless wearable device that delivers comprehensive health and fitness insights, expanding its addressable market in the health device sector. Additionally, the company recently released the next generation of Edge cycling computers, including the Edge 1060, which features a built-in microphone and speaker with hands-free voice control, and the user-friendly Edge Explore 3 series designed for cyclists of all levels.
Outdoor business
In the third quarter, outdoor revenue increased by 20%, primarily driven by expedition watches. The gross margin and operating margin were 68% and 39%, respectively, with operating profit reaching $233 million. During the quarter, the company launched the fēnix 9 and fēnix 9 Pro series, offering full titanium case options and featuring the largest AMOLED display in the flagship expedition watch lineup. In the same quarter, the company also introduced the new Garmin Drive GPS navigator, equipped with a high-resolution ultra-wide display and an enhanced user experience.
Aviation business
In the third quarter, aviation revenue increased by 5%, primarily driven by the OEM product category. Gross margin and operating margin were 78% and 26%, respectively, with operating profit reaching $66 million. During the quarter, the company launched the G2000 PRIME, bringing PRIME flight deck capabilities to the high-performance piston and electric aircraft markets. In the same quarter, the company announced that the full-glass retrofit cockpit for the original Cessna CitationJet has received certification. Pilatus Aircraft and Epic Aircraft recently announced that Garmin Autoland has been certified for the PC-12 Pro and e1000 aircraft. The company also delivered significant updates to Garmin Pilot, adding SmartCharts coverage for Canada and Mexico, along with the Mobile Clearance Delivery feature, enabling pilots to electronically obtain clearance via the Garmin Pilot app.
Maritime business
In the third quarter, marine revenue increased by 16%, with growth across multiple product categories, led by sonar products. Gross margin and operating margin were 64% and 30%, respectively, with operating profit reaching $94 million. During the quarter, the company launched the next-generation LiveScope 2, delivering improved range and clarity in real-time sonar imagery. In the same period, the company expanded its sailing product line with the introduction of the GMI 40 instrument display and the SmartDrive brushless linear steering actuator. The company also launched the JL Audio A60 head unit series and the M200 speaker system.
Original Equipment Manufacturer (OEM) automotive business
In the third quarter, revenue from original equipment manufacturer automotive business declined by 20%, primarily due to domain controllers. The gross margin was 16%, and the company recorded an operating loss of $12 million for the quarter.
Add financial information
Compared to the same period last year, the consolidated gross margin for the third quarter expanded by 420 basis points to 63.3%, with improved gross margins across all segments. The increase in consolidated gross margin was primarily driven by a favorable business mix, lower product costs, and a refund of approximately $33 million in previously paid tariffs.
Total operating expenses for the third quarter were $646 million, representing a 10% year-over-year increase. Research and development expenses increased by 9%, primarily driven by personnel-related costs. Sales, general, and administrative expenses increased by 10%, primarily driven by personnel-related costs and advertising expenses.
The effective tax rate for the third quarter was 18.1%, lower than 21.2% in the same period last year. The decrease in the tax rate was primarily due to an expected increase in U.S. deductions resulting from certain provisions of U.S. tax law enacted in 2025 and effective in 2026.
In the third quarter of 2026, the company generated $394 million in cash flow from operating activities and $293 million in free cash flow. The company paid a quarterly dividend of $202 million and repurchased $41 million of its common stock during the quarter. As of September 26, 2026, approximately $407 million remained available under the $500 million stock repurchase program authorized through December 2028. At the end of the quarter, the company held approximately $4.1 billion in cash and marketable securities.
FY2026 Guidance
Based on the performance in the first three quarters of 2026 and a positive outlook for the remainder of the year, the company has raised its full-year guidance for fiscal year 2026. The company now expects revenue of approximately $8.15 billion and pro forma earnings per share of $10.80, assuming a gross margin of 61.0%, an operating profit margin of 29.0%, and a full-year tax rate of 16.5% (see accompanying forward-looking financial metrics disclosure).
Dividend recommendation
At the 2026 annual general meeting, Garmin shareholders, pursuant to Swiss corporate law, approved a total cash dividend of $4.20 per share, to be paid in four equal installments at dates determined by the Board of Directors. The first and second payments were made on June 26, 2026, and September 25, 2026, respectively. The Board has set December 24, 2026, as the payment date for the next dividend of $1.05 per share, with a record date of December 11, 2026. The Board currently anticipates the following schedule for the remaining quarterly dividends:
Live streaming information / forward-looking statements
The following information pertains to Garmin Ltd.'s earnings conference call:
This live stream replay will be available until October 27, 2027, and can be viewed on the Garmin website at www.garmin.com. To listen to the replay, click the Investors link, then navigate to the News & Events page.
This press release contains forward-looking statements regarding Garmin Ltd. and its business, typically identifiable by words such as “anticipates,” “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” or similar expressions. Statements concerning the company’s projected GAAP and pro forma earnings, earnings per share, and effective tax rate for fiscal year 2026, as well as projected revenue growth rates by segment, consolidated revenue, gross margin, operating margin, tariffs and other global trade-related impacts, potential future acquisitions, stock repurchase programs, foreign exchange rate fluctuations, expenses, pricing, new product launches, market coverage, possible future dividends, and the company’s plans and objectives, are forward-looking statements. The forward-looking events and circumstances discussed in this press release may not occur, and actual results may differ materially from those anticipated due to risks and uncertainties affecting Garmin, including but not limited to the risk factors described in Garmin’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025, filed with the U.S. Securities and Exchange Commission (Commission File No. 001-41118). Garmin’s 2025 Form 10-K may be downloaded from https://investors.garmin.com/financials/sec-filings/default.aspx. All information provided in this press release and its attachments is current as of September 26, 2026, and the company undertakes no obligation to update this information unless required by law.
This press release and its attachments contain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures and explanations of the company’s use of these measures are provided in the attachments.
Garmin, the Garmin logo, Garmin Delta, Edge, fēnix, G1000, G2000, and JL Audio are trademarks of Garmin Ltd. or its subsidiaries and have been registered in one or more countries, including the United States. 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 property of their respective owners. All rights reserved.
Non-GAAP financial information
To supplement the financial results presented in accordance with GAAP, this press release includes the following non-GAAP financial measures as defined by the U.S. Securities and Exchange Commission: 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, should not be considered alternatives to or superior to GAAP financial measures, and may differ from non-GAAP measures used by other companies, thereby limiting comparability across companies. Management believes that providing an operating perspective consistent with how it manages the business enhances transparency into the company’s operating results, as detailed below under each category.
The table below provides a reconciliation between GAAP and non-GAAP metrics.
Pro forma effective tax rate
The company's income tax expense may occasionally be affected by discrete tax items unrelated to current-period earnings. Therefore, management considers the effective tax rate and income tax provisions prior to the impact of such discrete tax items to be important metrics for helping investors make consistent period-over-period comparisons. No such discrete tax items were identified in the first three quarters of 2026 and 2025.
Pro forma net income (earnings per share)
Management believes that net income (earnings per share) before the impact of foreign exchange gains or losses and certain discrete income tax items above is an important metric for investors to make consistent period-over-period comparisons.
Free cash flow
Management considers free cash flow to be an important liquidity metric because it represents the amount of cash generated from operating activities that is available for investment, defined as operating cash flow minus capital expenditures for property and equipment. Management believes that excluding purchases of property and equipment provides a better understanding of the underlying trends in the company’s operations and enables more accurate comparisons of performance across different periods. This metric may also be useful to investors, but it should not be viewed in isolation, as it is not a measure of cash available for discretionary spending. The most directly comparable GAAP metric is net cash generated from operating activities.
Forward-looking financial metrics
The forward-looking indicators in our 2026 guidance include certain economic assumptions, such as foreign exchange rates and tariffs, which are volatile and may change rapidly in either a favorable or unfavorable direction.
The forward-looking financial metrics provided above for 2026 do not take into account foreign exchange gains and losses, certain discrete tax items, or any other potential future net impacts that may be identified as pro forma adjustments when calculating the above non-GAAP metrics.
Due to the high volatility and low visibility of non-operating foreign exchange gains and losses and their related tax effects, it is not reasonably possible to estimate the expected impact of foreign exchange gains and losses on a forward-looking basis. After deducting tax effects, the impact of foreign exchange gains and losses on diluted net income per share was $0.04 per share for the 39 weeks ended September 26, 2026.
Currently, management cannot determine whether significant discrete tax items will arise in fiscal year 2026, estimate the impact of such items, or anticipate the effect of any other events that may be considered in calculating non-GAAP financial measures.