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# Garmin Stock Plunges 8%, Wiping Out $4.5 Billion, As Memory Costs Cloud 2027 Margins
- URL: https://www.bullished.co/garmin-stock-plunges-8-wiping-out-4-5-billion-as-memory-costs-cloud-2027-margins-d3f059c2/
- Published: 2026-10-28T16:19:21.000Z
- Updated: 2026-10-28T16:19:21.000Z
- Description: Shares fell after a cash-flow drop and a 2027 margin warning overshadowed a raised 2026 sales outlook.
- Author: Matteo Parrino
- Tags: Markets, GRMN, Industry: Technology

[Garmin](https://www.bullished.co/tag/grmn/) shares [fell 8.00% to $266.19](https://finance.yahoo.com/markets/stocks/articles/garmin-grmn-reports-q3-earnings-123003307.html?.tsrc=rss&ref=bullished.co) in Wednesday trading, as of 12:17 p.m. ET, erasing $4.5 billion in market value, after the CEO told analysts on the earnings call that memory costs will push margins back to a historical range in 2027\. The warning landed on the day Garmin reported third-quarter results.

## A good quarter, a cautious 2027

Garmin, which makes GPS-enabled devices for fitness, outdoor, aviation, marine and auto markets, reported adjusted earnings of $2.76 per share on revenue of $1.99 billion. In an [SEC filing](https://www.sec.gov/Archives/edgar/data/0001121788/000119312526435066/grmn-20261028.htm?ref=bullished.co), it raised its 2026 sales outlook to about $8.15 billion.

The [Form 10-Q](https://www.sec.gov/Archives/edgar/data/1121788/000119312526435070/grmn-20260926.htm?ref=bullished.co) shows net income of $541.7 million and an operating margin of 30.8%. Growth came from fitness and outdoor wearables, and the auto parts segment was the one that contracted.

The CFO said third-quarter free cash flow slid $132 million. Full-year free cash flow guidance now sits near $1.1 billion, and inventory has swelled to roughly $2.3 billion.

## Up 43% this year

The stock had run far before the drop. It was [up about 43%](https://finance.yahoo.com/markets/stocks/articles/garmin-grmn-reports-q3-earnings-123003307.html?.tsrc=rss&ref=bullished.co) year to date at Tuesday's close, against about 13% for the S&P 500.

Wednesday's decline was on pace to be the stock's fourth straight daily fall and its biggest one-day drop since October 29, 2025, when it fell 11.5%. Garmin's market value stood at $51.3 billion at the time of the report.

Adjusted earnings beat analyst estimates by 12.81%, yet the shares still fell on the 2027 margin warning.

Garmin's guidance now pairs a higher 2026 sales outlook with a CEO's warning that 2027 margins will return to a historical range.

### Sources

- [Garmin (GRMN) Reports Q3 Earnings: What Key Metrics Have to Say](https://finance.yahoo.com/markets/stocks/articles/garmin-grmn-reports-q3-earnings-123003307.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Garmin Stock Rises On Q3 Earnings Beat | Investor's Business Daily](https://www.investors.com/news/technology/garmin-stock-grmn-q3-2026-earnings-beat/?ref=bullished.co) — investors.com
- [Garmin GAAP EPS of $2.80 beats by $0.46, revenue of $1.99B beats by $10M (GRMN:NYSE)](https://seekingalpha.com/news/4658764-garmin-gaap-eps-of-2%5F80-beats-by-0%5F46-revenue-of-1%5F99b-beats-by-10m?ref=bullished.co) — seekingalpha.com
- [Garmin Ltd. (NYSE:GRMN) : Articles :: Law360](https://www.law360.com/companies/garmin-ltd/articles?ref=bullished.co) — law360.com
- [Here's How Much $1000 Invested In Garmin 5 Years Ago Would Be Worth Today](https://www.benzinga.com/news/26/10/62607411/here-s-how-much-1000-invested-garmin-5-years-ago-would-be-worth-today?ref=bullished.co) — benzinga.com
- [Garmin Posts Record Quarter And Lifts Its Full-Year Forecast, Led By Fitness Wearables](https://www.sec.gov/Archives/edgar/data/0001121788/000119312526435066/grmn-20261028.htm?ref=bullished.co) — SEC filing
- [Garmin Gears Up to Report Q3 Earnings: How to Play the Stock](https://www.zacks.com/stock/news/3014989/garmin-gears-up-to-report-q3-earnings-how-to-play-the-stock?cid=CS-ZC-FT-analyst%5Fblog|earnings%5Fpreview-3014989&ref=bullished.co) — Zacks Investment Research
- [Garmin Ltd. — Form 10-Q for the quarter ended 2026-09-26 (quarterly results)](https://www.sec.gov/Archives/edgar/data/1121788/000119312526435070/grmn-20260926.htm?ref=bullished.co) — SEC EDGAR

### More on Garmin

- [Garmin's Inventory Hits About $2.3 Billion As Memory Prepayments Cut Cash Flow $132 Million](https://www.bullished.co/garmins-inventory-hits-about-2-3-billion-as-memory-prepayments-cut-cash-flow-132-million-abb00abe/)
- [Garmin Raises 2026 Outlook, But Memory Costs Will Pull Margins Back To 'Historical Range'](https://www.bullished.co/garmin-raises-2026-outlook-but-memory-costs-will-pull-margins-back-to-historical-range-66c931b4/)
- [Garmin's Record 63.3% Gross Margin Includes A $33 Million Tariff Refund, And Memory Costs Are Coming](https://www.bullished.co/garmins-record-63-3-gross-margin-includes-a-33-million-tariff-refund-and-memory-costs-are-8a0b0e7b/)

[All Garmin (GRMN) coverage →](https://www.bullished.co/tag/grmn/)