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, we announce the third-quarter results as of September 26, 2026.
The main highlights include:
- Combined revenue reached a record $1.99 billion, an increase of 12% compared to the same period last 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, an increase of 34% compared to the same period last year.
- GAAP has an earnings per share of $2.80, pro forma has an earnings per share of $2.76; pro forma has earnings per share that have increased by 39% compared to the same period last year.
- For the 12th consecutive year, it has been recognized by the National Oceanic and Electronic Association of the United States as a manufacturer of the year for 2026, and has also won 6 Product Excellence Awards.
- Launch of the fē nix 9, fē nix 9, and fē Pro exploration watch series, expanding the flagship high-performance smart watch product line
- Recently, the delivery of the 1000th set of the G1000 integrated flight deck modification system was announced, which is to be used on King Air aircraft, making it one of the most successful modified flight deck projects in aviation history.
- Announced that over 2,500 aircraft are now equipped with the Garmin Autoland system; this system is the world's first and only certified autonomous system designed to automatically take over and safely pilot and land aircraft in emergency situations without the need for human intervention.
In the executive summary, CEO Cliff Pemble stated: "Driven by strong performance in multiple markets and product categories, we have once again achieved a record quarterly operating result, with our recently launched products also making a significant contribution. Strong operational execution further enhanced our performance, leading to a record consolidated gross margin, and the leverage of operating profit was also outstanding. Based on the results we have achieved so far and the momentum we feel as we enter the important holiday sales season, we have raised our outlook for 2026."
Fitness Business
In the third quarter, revenue from its fitness business grew by 16%, driven mainly by strong demand for wearable devices. The gross margin and operating margin were 63% and 33%, respectively, with operating profit amounting to 231 million US dollars. During the quarter, the company launched the CIRQA smart bracelet, a screenless wearable device that provides valuable health and fitness insights, thereby expanding its market presence in the health device sector. Additionally, the company recently released a new generation of Edge cycling computers, including the Edge 1060 model equipped with built-in microphones and speakers that support hands-free voice control, as well as the user-friendly Edge Explore 3 series suitable for various cyclists.
Outdoor Business
In the third quarter, revenue from its outdoor business grew by 20%, with the growth mainly driven by its adventure watches. The gross margin and operating profit margin were 68% and 39%, respectively, resulting in an operating profit of $233 million. During the quarter, the company launched the fē nix 9 and fē nix 9 Pro series, which offer all-titanium casings and are equipped with the largest AMOLED screens found in its flagship adventure watch lineup. In the same quarter, the company also introduced a brand-new Garmin Drive GPS navigator, featuring a high-resolution ultra-wide screen display and a better user experience.
Aviation Business
In the third quarter, aviation business revenue grew by 5%, with the growth mainly driven by the OEM product category. The gross margin and operating profit margin were 78% and 26%, respectively, resulting in an operating profit of 66 million US dollars. During the quarter, the company released G2000 PRIME, bringing the PRIME flight deck functionality to the high-performance piston and electric aircraft markets. In the same quarter, the company announced that the original Cessna CitationJet all-glass modified cockpit had been certified. Pilatus Aircraft and Epic Aircraft recently announced that Garmin Autoland had received certification for PC-12 Pro and e1000 aircraft. The company also made significant updates to Garmin Pilot, adding SmartCharts coverage in Canada and Mexico, as well as Mobile Clearance Delivery functionality, allowing pilots to obtain clearance permits electronically through the Garmin Pilot application.
Marine Business
In the third quarter, marine business revenue grew by 16%, with growth observed in multiple product categories, among which sonar products stood out the most. The gross margin and operating profit margin were 64% and 30%, respectively, with operating profit amounting to 94 million US dollars. During the quarter, the company launched the next generation of LiveScope, which provides better range and clarity in real-time sonar images. In the same quarter, the company expanded its sailing product line by introducing the GMI 40 instrument display and the SmartDrive brushless linear steering actuator. The company also launched the JL Audio A60 host series and the M200 speaker system.
Original vehicle parts and accessories business
In the third quarter, the revenue from the original equipment manufacturer (OEM) supporting business for automobiles decreased by 20%, mainly due to domain controllers. The gross margin was 16%, and the company recorded a operating loss of $12 million for that quarter.
Supplementary financial information
Compared with the same period last year, the consolidated gross margin in the third quarter increased by 420 basis points to 63.3%, and the gross margins of all divisions improved. The rise in the consolidated gross margin is mainly attributed to a favorable business structure, lower product costs, and a refund of approximately $33 million in tariffs that were previously paid.
Total operating expenses in the third quarter were $646 million, a year-on-year increase of 10%. Research and development expenses increased by 9%, mainly driven by personnel-related costs. Selling, general, and administrative expenses increased by 10%, primarily due to personnel-related costs and advertising expenses.
The effective tax rate in the third quarter was 18.1%, lower than 21.2% in the same period of the previous year. The decrease in the tax rate is mainly due to the increased expected deductions under certain provisions of the U.S. tax law that were passed in 2025 and took effect in 2026.
In the third quarter of 2026, the company generated cash flows from operating activities amounting to $394 million, with free cash flows at $293 million. The company paid out quarterly dividends of $202 million and repurchased $41 million of its own shares during this quarter. As of September 26, 2026, there was approximately $407 million remaining within the $500 million share repurchase plan authorized until December 2028. At the end of the quarter, the company held approximately $4.1 billion in cash and marketable securities.
2026 Fiscal Year 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 the fiscal year 2026. The company currently expects revenue to be approximately $8.15 billion, with pro forma earnings per share of $10.80, assuming a gross margin of 61.0%, an operating margin of 29.0%, and an annual tax rate of 16.5% (see the attached forward-looking financial indicators explanation).
Dividend Recommendations
At the 2026 annual general meeting of shareholders, Garmin shareholders approved a cash dividend of $4.20 per share, to be paid in four equal installments, with the specific dates to be determined at the discretion of the board of directors. The first and second payments were made on June 26, 2026, and September 25, 2026, respectively. The board of directors has set the date for the next dividend payment of $1.05 per share for December 24, 2026, with the registration date being December 11, 2026. The board currently expects the arrangement for dividends for the remaining quarters to be as follows:
Live Streaming Information/Forward-looking Statements
Garmin Ltd. The relevant information for the performance teleconference is as follows:
This live broadcast replay will be retained until October 27, 2027, and can be viewed on the Garmin website at www.garmin.com. To listen to the replay, please click on the Investors link, then proceed to the News & Events pages.
This press release contains forecasts and other forward-looking statements regarding Garmin Ltd and its business, which can typically be identified by terms such as “anticipates”, “would”, “may”, “expects”, “estimates”, “plans”, “intends”, “projects”, and similar expressions. Statements regarding the company's estimated GAAP and pro for the fiscal year 2026, forma expected earnings per share and effective tax rate, as well as the company's estimated revenue growth rates for each segment, consolidated revenue, gross margin, operating margin, tariffs, and other global trade-related impacts, potential future acquisitions, stock repurchase plans, exchange rate fluctuations, expenses, pricing, new product releases, market coverage, possible future dividends, and the company's plans and objectives, are all forward-looking statements. The forward-looking events and circumstances discussed in this press release may not occur, and actual results may differ significantly from expectations due to risk factors and uncertainties that affect Garmin. These include, but are not limited to, the risk factors described in Garmin's 10-K annual report for the fiscal year ending December 27, 2025, filed with the U.S. Securities and Exchange Commission (SEC) (Commission filing number 001-41118). Garmin's 2025 Form 10-K can be downloaded from https :// investors.garmin.com / financials / sec-filings / default.aspx. All information provided in this press release and its attachments is as of September 26, 2026, and unless legally required, the company assumes no obligation to update such information.
This press release and its attachments contain financial indicators that are not GAAP. For adjustments to the closest GAAP indicators and an explanation of how the company uses these indicators, please refer to the attachments.
Garmin, Garmin, Garmin, delta, Edge, fē nix, G1000, G2000, and nix 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 brand names, product names, company names, trademarks, and service marks are the property of their respective owners. All rights reserved.
Non-GAAP Financial Information
To complement the financial results presented under GAAP, this press release includes the following non-GAAP financial indicators as defined by the U.S. Securities and Exchange Commission: pro, forma effective tax rate, pro, forma net profit (earnings per share), and free cash flow. These non-GAAP indicators are not based on any comprehensive accounting rules or principles and should not be considered as a substitute for or superior to the GAAP financial indicators. Moreover, they may differ from the non-GAAP indicators used by other companies, which limits their comparability with those firms. Management believes that providing an operational perspective consistent with the way the company is managed enhances transparency regarding the company's operating results, as described in the various categories below.
The following table provides the adjustments between GAAP and non-GAAP indicators.
pro forma Effective tax rate
The company's income tax expense is occasionally affected by discrete tax items that are unrelated to the current period's earnings. Therefore, management believes that the effective tax rate and income tax provision prior to the impact of such discrete tax items are important indicators to help investors make consistent comparisons across periods. No such discrete tax items were identified in 2026 and in the first three quarters of 2025.
pro forma Net Profit (Earnings Per Share)
Management believes that the net profit (earnings per share) before excluding foreign exchange gains or losses and certain discrete income tax items mentioned above is an important indicator to help investors make consistent comparisons across periods.
Free Cash Flow
Management believes that free cash flow is an important liquidity indicator, as it represents the amount of cash generated from operating activities that can be used for investment. It is defined as operating cash flow minus capital expenditures on property and equipment. Management feels that excluding expenditures on property and equipment procurement helps to better understand the potential trends in the company's operations and makes comparisons of the company's performance across different periods more accurate. This indicator may also be useful to investors, but it should not be considered in isolation, as it is not a cash flow indicator that can be used for discretionary spending. The most comparable GAAP indicator is the net cash generated from operating activities.
Forward-looking financial indicators
The forward-looking indicators in our 2026 guidance include certain economic assumptions, such as foreign exchange rates and tariffs. These factors are volatile and can change rapidly in either a favorable or unfavorable direction.
The forward-looking financial indicators provided in the 2026 guidelines mentioned above 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 aforementioned non-GAAP indicators.
Due to the high volatility and low visibility of non-operating foreign exchange gains and losses and their related tax impacts, it is not possible to reasonably estimate the expected impact of foreign exchange gains and losses on a forward-looking basis. After deducting tax impacts, the effect of foreign exchange gains and losses on diluted earnings per share was $0.04 per share over the 39 weeks ending September 26, 2026.
At present, management is unable to determine whether there will be significant discrete tax items in the fiscal year 2026, nor can they estimate the impact of such items, or predict the impact of any other events that may be taken into consideration when calculating non-GAAP financial indicators.
