Garmin (NYSE:GRMN) Announces Quarterly Earnings Results

Key Points

• Garmin beat Q1 estimates, reporting EPS $2.08 vs. $1.84 consensus and revenue of $1.75B (+14% Y/Y), with gross margin expanding to 59.4% and Fitness segment growth of ~42% driving record quarterly results.
• Management kept FY‑2026 guidance unchanged at EPS $9.35 despite the beat, warning that Q1 is seasonally weak and flagging tariff/input cost headwinds and elevated inventory (~$1.9B) that could pressure margins into 2027.
• The company confirmed a quarterly dividend of $1.05 per share (annualized $4.20, ~1.7% yield) amid ongoing buyback activity, while insiders have recently sold shares and institutional ownership stands around 81.6%.

Garmin (NYSE:GRMN - Get Free Report) posted its quarterly earnings data on Wednesday. The scientific and technical instruments company reported $2.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.84 by $0.24, FiscalAI reports. Garmin had a net margin of 22.96% and a return on equity of 19.64%. The firm had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.72 billion. During the same quarter in the previous year, the firm posted $1.61 EPS. The business's revenue for the quarter was up 14.0% compared to the same quarter last year. Garmin updated its FY 2026 guidance to 9.350-9.350 EPS.

Here are the key takeaways from Garmin's conference call:

• Record Q1 results — consolidated revenue rose 14% to $1.75 billion, gross margin expanded to 59.4%, operating income was $432 million (+30%), and pro forma EPS was $2.08 (+29%).
• Fitness led growth with revenue up 42% to $547 million driven by higher unit volumes and demand for advanced wearables; management expects Fitness to be the biggest contributor to 2026 consolidated growth.
• Management is maintaining its February full‑year guidance despite the strong start, noting Q1 is seasonally the weakest quarter and saying it will reassess as the year progresses.
• Cost and tariff pressures — inventory rose to ~$1.9 billion with elevated safety stock, Marine margins were compressed by higher tariffs, the company expects ongoing tariff/input cost headwinds (with more impact likely in 2027), and no tariff refund receivable has been recorded.
• Auto OEM outlook is mixed — revenue was roughly flat (+1%) this quarter and is expected to decline in 2026 as BMW volumes wind down, but Garmin anticipates a significant Mercedes‑Benz program ramp beginning in 2027 while the segment remains non‑GAAP‑profitable for 2026.

Garmin Stock Up 1.6%

Shares of NYSE GRMN traded up $4.06 during trading on Wednesday, reaching $251.87. The company had a trading volume of 755,269 shares, compared to its average volume of 923,305. Garmin has a 12 month low of $178.74 and a 12 month high of $273.32. The stock has a market cap of $48.58 billion, a P/E ratio of 29.29, a PEG ratio of 3.08 and a beta of 0.96. The company's fifty day moving average price is $246.86 and its 200-day moving average price is $223.01.

Garmin Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 26th. Shareholders of record on Friday, March 12th will be issued a dividend of $1.05 per share. The ex-dividend date of this dividend is Friday, March 12th. This represents a $4.20 annualized dividend and a yield of 1.7%. Garmin's payout ratio is presently 48.84%.

Key Headlines Impacting Garmin

Here are the key news stories impacting Garmin this week:

• Positive Sentiment: Q1 results beat consensus — EPS $2.08 vs. $1.84 expected and revenue $1.75B (up 14% Y/Y). Strong operating margin and ROE noted by the company. Article Title
• Positive Sentiment: Company reported record first-quarter revenue and operating income, highlighting durable demand for premium wearables and steady aviation/marine sales. Article Title
• Positive Sentiment: Fitness segment very strong (reported ~42% growth), and management announced a sizable dividend raise — supports cash-return thesis. Article Title
• Positive Sentiment: Morgan Stanley upgraded Garmin from Underweight to Equal Weight and bumped its price target, reflecting improved sentiment among some sell‑side analysts. Article Title
• Neutral Sentiment: Earnings call transcript and slide deck are available for details on segment performance and cadence; useful for investors digging into management commentary. Article Title
• Neutral Sentiment: Value/peer comparison pieces examine Garmin vs. other electronics names — helpful for longer‑term valuation context but not market movers today. Article Title
• Negative Sentiment: FY‑2026 guidance was kept at EPS 9.35 and revenue ~$7.9B, slightly below consensus (~9.39 EPS / ~$8.0B revenue) — the modest shortfall is the main reason the stock didn’t rally harder. View Press Release
• Negative Sentiment: Despite the beat, the market reaction was negative in parts of the session — headlines called out the conservative outlook and the stock briefly pulled back after the release. Article Title

Insider Buying and Selling

In related news, COO Patrick Desbois sold 6,694 shares of the company's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $251.65, for a total transaction of $1,684,545.10. Following the sale, the chief operating officer owned 58,540 shares in the company, valued at $14,731,591. This represents a 10.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Matthew Munn sold 5,275 shares of the firm's stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $250.97, for a total transaction of $1,323,866.75. Following the sale, the executive vice president directly owned 9,876 shares of the company's stock, valued at approximately $2,478,579.72. This trade represents a 34.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 40,725 shares of company stock valued at $10,213,222 over the last 90 days. 19.54% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Corient Private Wealth LLC grew its position in Garmin by 59.0% in the 4th quarter. Corient Private Wealth LLC now owns 32,562 shares of the scientific and technical instruments company's stock valued at $6,605,000 after purchasing an additional 12,084 shares during the period. Alpine Woods Capital Investors LLC increased its stake in shares of Garmin by 9.6% during the 4th quarter. Alpine Woods Capital Investors LLC now owns 10,209 shares of the scientific and technical instruments company's stock worth $2,071,000 after purchasing an additional 895 shares during the last quarter. Summit Global Investments purchased a new stake in shares of Garmin during the 4th quarter worth approximately $210,000. Vident Advisory LLC raised its holdings in Garmin by 11.8% during the 4th quarter. Vident Advisory LLC now owns 13,600 shares of the scientific and technical instruments company's stock valued at $2,759,000 after acquiring an additional 1,438 shares during the period. Finally, FAS Wealth Partners Inc. raised its holdings in Garmin by 5.4% during the 4th quarter. FAS Wealth Partners Inc. now owns 18,366 shares of the scientific and technical instruments company's stock valued at $3,725,000 after acquiring an additional 938 shares during the period. Institutional investors own 81.60% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Weiss Ratings reissued a "buy (b)" rating on shares of Garmin in a research report on Thursday, January 22nd. Morgan Stanley raised shares of Garmin from an "underweight" rating to an "equal weight" rating and lifted their price objective for the company from $195.00 to $252.00 in a research note on Tuesday. JPMorgan Chase & Co. upped their target price on Garmin from $265.00 to $285.00 and gave the stock a "neutral" rating in a research note on Thursday, April 16th. Tigress Financial lifted their price target on Garmin from $310.00 to $320.00 and gave the company a "strong-buy" rating in a research note on Friday, February 20th. Finally, Zacks Research upgraded Garmin from a "hold" rating to a "strong-buy" rating in a research report on Monday, February 23rd. Two investment analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, Garmin has a consensus rating of "Moderate Buy" and an average target price of $269.40.

About Garmin

Garmin Ltd. is a technology company best known for designing and manufacturing navigation, communication and information devices that leverage global positioning system (GPS) technology. The company serves a diverse set of markets including consumer fitness and wearables, automotive navigation, aviation avionics, marine electronics and outdoor handheld devices. Garmin's products combine hardware, mapping and software services to deliver location-aware solutions for personal, recreational and professional uses.

Garmin's product lineup includes wearable fitness and multisport watches (Forerunner, Fenix, Venu), cycling computers and accessories (Edge, Varia), handheld and handheld-mounted GPS devices for outdoor activities, automotive and portable navigation units, marine chartplotters and fishfinders, and certified avionics for fixed- and rotary-wing aircraft.

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