Garmin reported record quarterly revenue of $1.99 billion, up 12%, with fitness device sales rising 16% and outdoor device sales up 20%. Gross and operating margins rose to 63.3% and 30.8%, versus below 60% and below 26% a year earlier. Shares initially gained more than 2% but reversed after CEO Cliff Pemble said fourth-quarter gross margin would slip to about 61% as memory component costs soared amid tight AI-driven supply, and that margins would return to a historical range of about 58.5% next year. The stock was down 6.2% as of 3:18 p.m. ET, and its P/E ratio fell to about 25 based on raised earnings guidance.
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