News about Garmin

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.

Garmin (GRMN) raised its fiscal 2026 revenue forecast to $8.05 billion from $7.9 billion and its pro forma EPS forecast to about $10 from $9.65, alongside its second-quarter results. Operating margin reached 30.4% in the quarter ended June, up from 26.0% a year earlier, helped by a better product mix and a $21 million tariff refund. The stock rose 15.2% since the close before the release, versus 4.4% for the S&P 500, but has slipped 1.8% since July 30 while the index gained 4.3%. To meet the forecast, third- and fourth-quarter revenue must reach $4.27 billion, up 9.7% from a year earlier, slower than the 12.7% first-half growth as BMW volumes have peaked. Shares trade at 29.9 times trailing twelve-month earnings, versus 23.0 for the S&P 500.