Archive photo: A Garmin watch, not a new model. Maël Balland/Pexels (cropped)
Garmin raised its full-year outlook Wednesday after reporting record third-quarter revenue of $1.99 billion and a 34% increase in operating income, with fitness wearables and outdoor products leading growth.
Revenue rose 12% from a year earlier, while operating income reached $612 million, according to Garmin’s results announcement. GAAP diluted earnings per share were $2.80. Pro forma diluted earnings were $2.76 a share, up 39%; that is a non-GAAP measure.
Outlook raised ahead of holiday selling season
The company now forecasts approximately $8.15 billion in 2026 revenue and $10.80 in pro forma earnings per share, according to its full earnings release. The earnings forecast is non-GAAP. Its outlook assumes a gross margin of 61%, operating margin of 29% and full-year tax rate of 16.5%.
Third-quarter gross margin reached 63.3% and operating margin was 30.8%. Chief Executive Cliff Pemble said the company was raising its outlook based on results so far and momentum heading into the holiday selling season.
Fitness revenue increased 16% to $694.3 million, led by wearables. Outdoor revenue rose 20% to $597.3 million, with adventure watches the main growth driver.
Marine revenue increased 16%, while aviation revenue rose 5%. Auto OEM revenue fell 20%, and that segment recorded a $12 million operating loss.
Garmin’s earnings call is scheduled for 10:30 a.m. Eastern time Wednesday.
JBizNews Desk | Schaffhausen, Switzerland
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