Garmin stock: Higher outlook meets rising memory-cost risk

Garmin Ltd. reported record operating results for the quarter ended September 26, 2026, and raised its full-year outlook on October 28. In its official release, the company said quarterly revenue rose 12 percent to 1.99 billion US dollars, while operating income increased 34 percent to 612 million US dollars.

Garmin stock traded at 264.35 euros on Lang & Schwarz at 17:05 CET on Wednesday, November 11, 2026. Compared with the 258.85-euro quote in the latest same-day report at 12:07 CET, the arithmetic difference was 2.12 percent.

Record quarter lifts 2026 targets

Garmin now expects 2026 revenue of 8.15 billion US dollars, compared with 8.05 billion US dollars previously. Pro forma diluted earnings per share guidance increased to 10.80 US dollars from 10.00 US dollars.

The revised outlook assumes a full-year gross margin of 61.0 percent, an operating margin of 29.0 percent and a pro forma tax rate of 16.5 percent. Third-quarter pro forma diluted earnings per share rose 39 percent to 2.76 US dollars, while GAAP diluted earnings per share reached 2.80 US dollars.

Wearables lead while Auto OEM lags

Fitness revenue increased 16 percent to 694.3 million US dollars, and Outdoor revenue climbed 20 percent to 597.3 million US dollars. Marine revenue gained 16 percent to 309.9 million US dollars, while Aviation revenue rose 5 percent to 252.7 million US dollars.

Auto OEM revenue fell 20 percent to 131.9 million US dollars, and the segment recorded an operating loss of 11.9 million US dollars. Garmin said the decline was primarily linked to domain controllers.

Memory costs shape the next test

Management said higher memory and other raw-material costs will have a greater effect in the fourth quarter as lower-cost inventory is replaced with components purchased at current prices. Garmin is also holding more inventory and making prepayments to secure supplies.

The company said third-quarter margin expansion benefited from product mix, lower product costs and approximately 33 million US dollars in refunds of previously paid tariffs. For investors, the key issue is whether demand in Fitness and Outdoor can offset component inflation and the lower-margin Auto OEM business after the holiday season.

The S&P 500 market environment remains relevant for large US-listed technology companies.

For more company coverage, see More news and analyses on Garmin stock.