Garmin Stock Plunges 8%, Wiping Out $4.5 Billion, As Memory Costs Cloud 2027 Margins
Shares fell after a cash-flow drop and a 2027 margin warning overshadowed a raised 2026 sales outlook.
Garmin shares fell 8.00% to $266.19 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, it raised its 2026 sales outlook to about $8.15 billion.
The Form 10-Q 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% 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 — Yahoo Finance
- Garmin Stock Rises On Q3 Earnings Beat | Investor's Business Daily — investors.com
- Garmin GAAP EPS of $2.80 beats by $0.46, revenue of $1.99B beats by $10M (GRMN:NYSE) — seekingalpha.com
- Garmin Ltd. (NYSE:GRMN) : Articles :: Law360 — law360.com
- Here's How Much $1000 Invested In Garmin 5 Years Ago Would Be Worth Today — benzinga.com
- Garmin Posts Record Quarter And Lifts Its Full-Year Forecast, Led By Fitness Wearables — SEC filing
- Garmin Gears Up to Report Q3 Earnings: How to Play the Stock — Zacks Investment Research
- Garmin Ltd. — Form 10-Q for the quarter ended 2026-09-26 (quarterly results) — SEC EDGAR
