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# Garmin Raises 2026 Outlook To About $8.15 Billion In Sales After Record Quarter
- URL: https://www.bullished.co/garmin-raises-2026-outlook-to-about-8-15-billion-in-sales-after-record-quarter-36f47f32/
- Published: 2026-10-28T11:06:58.000Z
- Updated: 2026-10-28T11:06:58.000Z
- Description: Operating income climbed 34% to $612 million, while the auto OEM business fell 20% and posted a $12 million operating loss.
- Author: Matteo Parrino
- Tags: SEC Filings, GRMN, Industry: Technology

Garmin, which makes GPS-enabled fitness, outdoor, aviation, marine and automotive devices, reported record third-quarter [revenue of $1.99 billion](https://www.sec.gov/Archives/edgar/data/0001121788/000119312526435066/grmn-ex99%5F1.htm?ref=bullished.co), up 12% from a year earlier, and raised its 2026 forecast, the company said Wednesday in an [8-K filing](https://www.sec.gov/Archives/edgar/data/0001121788/000119312526435066/grmn-20261028.htm?ref=bullished.co). Operating income hit $612 million, up 34%.

## Margins widen, tariff refunds help

Pro forma earnings per share, which exclude currency gains and losses, were $2.76, up 39%. Earnings under standard accounting were $2.80 a share, up 35%.

Gross margin widened to 63.3% from 59.1%. The company credited favorable product mix, lower product costs and about $33 million in refunds of previously paid tariffs. Operating margin reached 30.8%, from 25.8%.

The effective tax rate fell to 18.1% from 21.2%, which Garmin attributed to expected U.S. deductions under tax legislation enacted in 2025 that took effect in 2026.

## Outdoor leads growth, auto OEM shrinks

Outdoor was the fastest-growing business, with sales up 20% on adventure watches. Fitness, the largest segment at $694 million, rose 16% on demand for wearables. Marine also gained 16%, led by sonar, and aviation rose 5%, driven by sales to aircraft makers.

Auto OEM, which sells products built into vehicles by automakers, fell 20% mainly because of domain controllers. The segment lost $12 million at the operating line.

CEO Cliff Pemble credited "strength across markets and product categories, with meaningful contributions from recently launched products."

## Guidance up, cash flow down

Garmin now expects 2026 revenue of about $8.15 billion and pro forma earnings of $10.80 a share, based on a 29.0% operating margin, 61.0% gross margin and a 16.5% tax rate.

Free cash flow fell to $293 million from $425 million a year earlier, as capital spending rose to $101 million. The company ended the quarter with about $4.1 billion in cash and marketable securities.

Garmin repurchased $41 million of stock, leaving about $407 million in its $500 million buyback program, which runs through December 2028.

The next $1.05-a-share dividend installment is payable December 24 to holders of record on December 11; the earnings call began at 10:30 a.m. Eastern Wednesday.

### Sources

- [8-K Filing — GARMIN LTD (GRMN)](https://www.sec.gov/Archives/edgar/data/0001121788/000119312526435066/grmn-20261028.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit grmn-ex99\_1.htm — GARMIN LTD 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001121788/000119312526435066/grmn-ex99%5F1.htm?ref=bullished.co) — SEC EDGAR