10-Q · July 29, 2026
Garmin delivered a strong Q2, with revenue of $2.022 billion rising 11% year over year and operating income growing 30% to $615.5 million. Gross margin expanded 360 basis points to 62.4% and operating margin expanded…
Earnings analysis · 10-Q
GRMN earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Garmin reported strong Q3 execution, with revenue of $1.986 billion and diluted EPS of $2.80, beating consensus estimates of $1.982576 billion and $2.38. Gross margin rose to 63.3% and operating margin to 30.8%, while…
Read full summary
Garmin reported strong Q3 execution, with revenue of $1.986 billion and diluted EPS of $2.80, beating consensus estimates of $1.982576 billion and $2.38. Gross margin rose to 63.3% and operating margin to 30.8%, while Fitness, Outdoor and Marine led growth; Auto remained a headwind. Free cash flow was positive at $293.268 million, and management raised FY2026 guidance to approximately $8.15 billion of revenue and $10.80 of pro forma EPS. The filing disclosed no material changes to the risks reported in the prior 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.8
- Segment
- Fitness, Outdoor and Marine were identified as growth leaders; the filing data provided does not include segment revenue amounts.
- Segment
- Auto was identified as a relative weakness; the filing data provided does not include segment revenue amounts.
What stood out
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Revenue grew 12.2% year over year
Third-quarter revenue was $1.986 billion, up approximately 12.2% from $1.77 billion in Q3 2025 but down approximately 1.7% from $2.02 billion in Q2 2026. Revenue exceeded the $1.982576 billion consensus estimate.
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Margins reached quarterly records
Gross margin expanded to 63.3%, up 0.9 percentage points from 62.4% in Q2 2026 and 4.2 points from 59.1% in Q3 2025. Operating margin increased to 30.8%, versus 30.4% and 25.8%, respectively.
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EPS materially exceeded consensus
Diluted EPS was $2.80, flat versus $2.80 in Q2 2026 and up from $2.08 in Q3 2025. EPS exceeded the $2.38 consensus estimate by approximately 17.6%.
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Fitness, Outdoor and Marine led growth
Growth was led by the Fitness, Outdoor and Marine businesses, while Auto remained comparatively weak. Consolidated revenue nevertheless increased to $1.986 billion from $1.77 billion a year earlier.
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Cash generation remained positive
Free cash flow was $293.268 million, up from $276 million in Q2 2026 but below $425 million in Q3 2025. The filing data provided does not disclose quarterly operating cash flow or capital expenditures.
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FY2026 outlook was raised
The company raised FY2026 outlook to approximately $8.15 billion of revenue and $10.80 of pro forma EPS, based on 61.0% gross margin, 29.0% operating margin and a 16.5% tax rate.
What to watch
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Auto weakness remains a headwind
Auto was described as a relative weakness, creating concentration risk despite consolidated revenue growth of 12.2% year over year to $1.986 billion. No Auto segment dollar change was provided in the supplied filing text.
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Share repurchases consume liquidity
The company authorized up to $500 million of common-share repurchases under the 2026 Program. Repurchases during the quarter were made at average prices of $241.72, $286.27 and $280.85 by monthly period, which could reduce liquidity if buybacks continue at elevated levels.
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No material risk-factor changes disclosed
Management stated that there were no material changes during the 39-week period ended September 26, 2026 to the risks in the December 27, 2025 Form 10-K. Legal proceedings were also not expected to have a material adverse effect, but their ultimate outcome cannot be predicted with certainty.
Management's outlook
Management raised FY2026 guidance to approximately $8.15 billion of revenue and $10.80 of pro forma EPS, based on approximately 61.0% gross margin, 29.0% operating margin and a 16.5% tax rate.
Earlier filings 4
10-Q · April 29, 2026
Garmin Ltd. reported a strong Q1 2026 with revenue reaching $1.75 billion, a 14% increase year-over-year, and a dilutive EPS of $2.09, outperforming expectations by $0.25. The fitness segment led growth with a…
10-Q · October 29, 2025
Garmin reported Q3 net sales of $1,770,901,000 and diluted EPS of $2.08. Revenue rose year‑over‑year (Q3 2024 net sales $1,586,022,000) and gross profit increased to $1,046,487,000, while operating margin compressed to…
10-Q · April 30, 2025
Garmin reported Q1 net sales of $1,535,099 (in thousands), up from $1,381,649 (in thousands) year-over-year, with operating income of $332,824 (in thousands) and diluted EPS of $1.72. Operating cash flow was $420,788…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.