Garmin announces third quarter 2026 results

Tariff refunds helped expand quarterly gross margin, while Auto OEM revenue declined 20% despite growth in the other segments.

Rhea-AI Summary

Garmin (NYSE: GRMN) reported record third-quarter revenue of $1.99 billion, with higher profitability, and raised its full-year outlook. For the quarter ended September 26, 2026, revenue rose 12% year over year, operating income increased 34% to $612 million, and GAAP diluted earnings per share rose 35% to $2.80. Gross margin reached 63.3%, versus 59.1%, helped by approximately $33 million in tariff refunds; operating margin increased to 30.8% from 25.8%.

Fitness, outdoor, aviation and marine revenue grew, while Auto OEM revenue fell 20% and the segment recorded a $12 million operating loss. Operating cash flow was $394 million, and cash and marketable securities totaled approximately $4.1 billion. Garmin now anticipates 2026 revenue of approximately $8.15 billion and pro forma earnings per share of $10.80, with gross and operating margins of 61.0% and 29.0%, respectively.

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Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Garmin raised 2026 guidance to approximately $8.15 billion revenue and $10.80 pro forma earnings per share.
• Moderate pointThird-quarter revenue rose 12% year over year to $1.99 billion, a quarterly record.
• Moderate pointThird-quarter operating income increased 34% year over year to $612 million, a record.
• Moderate pointThird-quarter GAAP diluted earnings per share increased 35% to $2.80 from $2.08 a year earlier.
• Moderate pointThird-quarter gross margin expanded 420 basis points to 63.3%, with higher margins across all segments.
• Moderate pointThird-quarter operating margin increased to 30.8% from 25.8% a year earlier.

19 minor points

• Minor pointThird-quarter net income increased to $541.661 million from $401.615 million a year earlier.
• Minor pointPreviously paid tariff refunds of approximately $33 million contributed to third-quarter gross margin.
• Minor pointFitness third-quarter revenue increased 16% year over year to $694.328 million, led by wearables demand.
• Minor pointFitness third-quarter operating income reached $231 million, with a 33% operating margin.
• Minor pointOutdoor third-quarter revenue increased 20% year over year to $597.301 million, primarily driven by adventure watches.
• Minor pointOutdoor third-quarter operating income reached $233 million, with a 39% operating margin.
• Minor pointAviation third-quarter revenue increased 5% year over year to $252.657 million, primarily driven by OEM product categories.
• Minor pointAviation third-quarter operating income reached $66 million, with a 26% operating margin.
• Minor pointMarine third-quarter revenue increased 16% year over year to $309.878 million, led by sonar products.
• Minor pointMarine third-quarter operating income reached $94 million, with a 30% operating margin.
• Minor pointAviation certifications included an all-glass retrofit cockpit for the original Cessna CitationJet.
• Minor pointGarmin Autoland received certification on the Pilatus PC-12 Pro and Epic e1000 airplanes.
• Minor pointThird-quarter effective tax rate decreased to 18.1% from 21.2% a year earlier.
• Minor pointThird-quarter cash generation included $394 million operating cash flow and $293 million free cash flow.
• Minor pointQuarter-end cash and marketable securities totaled approximately $4.1 billion.
• Minor pointFirst-39-week revenue increased 13% year over year to $5.761658 billion.
• Minor pointFirst-39-week operating income increased 31% year over year to $1.658821 billion.
• Minor pointFirst-39-week GAAP diluted earnings per share increased 31% to $7.69 from $5.87 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Garmin anticipates 2026 61.0% gross margin, 29.0% operating margin and a 16.5% full-year tax rate.

Negative

• Moderate pointThird-quarter operating expenses increased 10% year over year to $646 million.
• Minor pointAuto OEM third-quarter revenue decreased 20% year over year to $131.912 million, primarily due to domain controllers.
• Minor pointAuto OEM recorded a third-quarter $12 million operating loss, with a 16% gross margin.
• Minor pointAuto OEM first-39-week revenue decreased 6% year over year to $474.603 million.

News Explained

Garmin paid a $202 million quarterly dividend and repurchased $41 million of its shares; about $407 million remains of the $500 million repurchase program authorized through December 2028.

Key Figures

Q3 revenue: $1.99 billion, up 12% year over year Operating income: $612 million, up 34% year over year GAAP diluted EPS: $2.80, up 35% year over year +5 more

Q3 revenue

$1.99 billion, up 12% year over year

Third quarter 2026

Operating income

$612 million, up 34% year over year

Third quarter 2026

GAAP diluted EPS

$2.80, up 35% year over year

Third quarter 2026

Pro forma diluted EPS

$2.76, up 39% year over year

Third quarter 2026

Gross margin

63.3%, expanded 420 basis points year over year

Third quarter 2026

Operating margin

30.8%

Third quarter 2026

2026 revenue guidance

$8.15 billion

Raised full-year guidance

2026 pro forma EPS guidance

$10.80

Raised full-year guidance

Previous Earnings Reports

1 past event · Latest: Jul 29

Same Type 1 event

1. Jul 29

   Quarterly earnings

   24h Move

   +16.2%

   Q2 2026 record results led Garmin to raise full-year revenue and pro forma EPS guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap financial measures, free cash flow, pro forma diluted eps

4 terms

gaap financial

"GAAP EPS of $2.80"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial measures financial

"This release and the attachments contain non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

free cash flow financial

"free cash flow(1) of $293 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

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pro forma diluted eps financial

"Pro forma diluted EPS(1) of $2.76"

Pro forma diluted EPS is an adjusted earnings-per-share figure that shows net income per share after accounting for all potentially dilutive securities (like stock options, convertible debt or convertible preferred stock) and after applying management’s pro forma adjustments to reported net income. It combines the diluted EPS calculation — which spreads reported earnings over the larger number of shares that would exist if all dilutive instruments converted — with non-GAAP ‘pro forma’ adjustments (for example, excluding one-time charges or acquisition-related items); because those adjustments are not standardized, the exact number depends on which items management excludes or includes.

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Company reports record third quarter operating results and raises full year guidance

SCHAFFHAUSEN, Switzerland, Oct. 28, 2026 /PRNewswire/ -- Garmin^® Ltd. (NYSE: GRMN), today announced results for the third quarter ended September 26, 2026.

Highlights include:

• Record consolidated revenue of $1.99 billion, a 12% increase compared to the prior year quarter
• Gross and operating margins expanded to 63.3% and 30.8% respectively, compared to the prior year quarter
• Record operating income of $612 million, a 34% increase compared to the prior year quarter
• GAAP EPS of $2.80 and pro forma EPS⁽¹⁾ of $2.76, representing a 39% increase in pro forma EPS compared to the prior year quarter
• Named 2026 Manufacturer of the Year by the National Marine Electronics Association for the 12^th consecutive year, and received six Product of Excellence awards
• Launched the fēnix^® 9 and fēnix 9 Pro adventure watch series, expanding our flagship performance smartwatch lineup
• Recently announced the delivery of our 1,000th G1000^® integrated flight deck retrofit for King Air aircraft making this one of the most successful retrofit flight deck programs in aviation history
• Announced that more than 2,500 aircraft are equipped with the revolutionary Garmin Autoland system, the world's first and only certified autonomous system designed to activate during an emergency to safely fly and land an aircraft without human interaction

(In thousands, except per share information)		13-Weeks Ended												39-Weeks Ended
		September 26,				September 27,				YoY				September 26,				September 27,				YoY
		2026				2025				Change				2026				2025				Change
Net sales		$	1,986,076			$	1,770,901			12 %				$	5,761,658			$	5,120,564			13 %
Fitness			694,328				601,013			16 %					1,997,974				1,591,159			26 %
Outdoor			597,301				497,598			20 %					1,497,571				1,426,451			5 %
Aviation			252,657				240,445			5 %					785,248				712,926			10 %
Marine			309,878				267,005			16 %					1,006,262				885,704			14 %
Auto OEM			131,912				164,840			(20) %					474,603				504,324			(6) %
Gross profit			1,257,768				1,046,487			20 %					3,562,078				2,998,043			19 %
Gross margin %			63.3	%			59.1	%							61.8	%			58.5	%
Operating Income			611,648				456,803			34 %					1,658,821				1,261,922			31 %
Operating income %			30.8	%			25.8	%							28.8	%			24.6	%
GAAP diluted EPS		$	2.80			$	2.08			35 %				$	7.69			$	5.87			31 %
Pro forma diluted EPS(1)		$	2.76			$	1.99			39 %				$	7.65			$	5.77			33 %

(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma diluted EPS

Executive Overview from Cliff Pemble, President and Chief Executive Officer:

"We achieved another quarter of record operating results driven by strength across markets and product categories, with meaningful contributions from recently launched products. Our results were further enhanced by strong operational execution resulting in record consolidated gross margin and impressive operating profit leverage. We are raising our 2026 outlook based on the results we have achieved so far and the momentum we are experiencing as we enter the important holiday selling season." - Cliff Pemble, President and Chief Executive Officer of Garmin Ltd.

Fitness:

Revenue from the fitness segment increased 16% in the third quarter with growth led by strong demand for wearables. Gross and operating margins were 63% and 33%, respectively, resulting in $231 million of operating income. During the quarter, we launched the CIRQA™ Smart Band, a screenless wearable offering rich wellness and fitness insights that expands our addressable market for wellness devices. In addition, we recently announced the next generation of Edge^® cycling computers with the Edge 1060 featuring a built-in microphone and speaker for hands-free voice control capability and the Edge Explore 3 series, an easy-to-use bike computer for riders of all levels.

Outdoor:

Revenue from the outdoor segment increased 20% in the third quarter with growth primarily driven by adventure watches. Gross and operating margins were 68% and 39%, respectively, resulting in $233 million of operating income. During the quarter, we launched the fēnix 9 and fēnix 9 Pro series, with an all-titanium watch case option and the largest available AMOLED screen in our flagship adventure watch lineup. Also during the quarter, we launched the all-new Garmin Drive™ GPS navigators with high-resolution ultrawide format displays and an elevated user experience.

Aviation:

Revenue from the aviation segment increased 5% in the third quarter with growth primarily driven by OEM product categories. Gross and operating margins were 78% and 26%, respectively, resulting in $66 million of operating income. During the quarter, we unveiled the G2000^® PRIME, bringing PRIME flight deck functionality to the high-performance piston and electric aircraft market. Also during the quarter, we announced the certification of an all-glass retrofit cockpit for the original Cessna CitationJet. Pilatus Aircraft and Epic Aircraft recently announced the certification of Garmin Autoland on the PC-12 Pro and the e1000 airplanes, respectively. We also made important updates to Garmin Pilot™, adding SmartCharts coverage for Canada and Mexico, as well as Mobile Clearance Delivery which allows pilots to obtain clearances electronically through the Garmin Pilot app.

Marine:

Revenue from the marine segment increased 16% in the third quarter with broad-based growth across multiple categories, led by the sonar product category. Gross and operating margins were 64% and 30%, respectively, resulting in $94 million of operating income. During the quarter, we launched the next generation LiveScope™ 2, delivering live sonar images with improved range and clarity. Also during the quarter, we expanded our sailboat product lineup with the GMI™ 40 instrument display and the SmartDrive™ brushless linear steering actuator. We also launched the JL Audio A60 head unit series, and M200 speaker systems.

Auto OEM:

Revenue from the auto OEM segment decreased 20% during the third quarter primarily due to domain controllers. Gross margin was 16% and we recorded an operating loss of $12 million in the quarter.

Additional Financial Information:

The consolidated third quarter gross margin expanded 420 basis points to 63.3%, compared to the prior year quarter, with higher margins across all segments. The consolidated gross margin increase was primarily attributable to favorable segment mix, lower product cost, and approximately $33 million in refunds of previously paid tariffs.

Total operating expenses in the third quarter were $646 million, a 10% increase over the prior year. Research and development increased 9% driven primarily by personnel-related costs. Selling, general and administrative expenses increased 10%, driven primarily by personnel-related costs and advertising expenses.

The effective tax rate in the third quarter was 18.1%, compared to an effective tax rate of 21.2% in the prior year quarter. The decrease in the effective tax rate is primarily driven by an increase in expected U.S. deductions due to certain provisions of the U.S. tax legislation enacted in 2025 that became effective in 2026.

In the third quarter of 2026, we generated operating cash flows of $394 million and free cash flow⁽¹⁾ of $293 million. We paid a quarterly dividend of $202 million and repurchased $41 million of the Company's shares within the quarter, leaving approximately $407 million remaining as of September 26, 2026 in the $500 million share repurchase program authorized through December 2028. We ended the quarter with cash and marketable securities of approximately $4.1 billion.

(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma effective tax rate and free cash flow.

Fiscal Year 2026 Guidance:

Based on our performance in the first three quarters of 2026 and our positive outlook for the remainder of the year, we are raising our full year 2026 guidance. We now anticipate revenue of approximately $8.15 billion and pro forma EPS of $10.80 based on gross margin of 61.0%, operating margin of 29.0% and a full year tax rate of 16.5% (see attached discussion on Forward-looking Financial Measures).

Dividend Recommendation:

At the 2026 annual shareholders' meeting, Garmin shareholders, in accordance with Swiss corporate law, approved a cash dividend in the total amount of $4.20 per share, payable in four equal installments on dates to be determined by the Board in its discretion. The first and second payments were made on June 26, 2026 and September 25, 2026. The Board of Directors has established December 24, 2026, as the payment date for the next dividend installment of $1.05 per share with a record date of December 11, 2026. The Board currently anticipates the scheduling of the remaining quarterly dividend installment as follows:

Dividend Date		Record Date		$'s per share
March 26, 2027		March 12, 2027		$1.05

Webcast Information/Forward-Looking Statements:

The information for Garmin Ltd.'s earnings call is as follows:

When:	Wednesday, October 28, 2026 10:30 a.m. Eastern
Where:	Join a live stream of the call at the following link https://investors.garmin.com/news-and-events/default.aspx

An archive of the live webcast will be available until October 27, 2027 on the Garmin website at www.garmin.com. To access the replay, click on the Investors link and click over to the News & Events page.

This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as "anticipates," "would," "may," "expects," "estimates," "plans," "intends," "projects," and other words or phrases with similar meanings. Any statements regarding the Company's expected fiscal 2026 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company's expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, tariffs and other global trade related impacts, potential future acquisitions, share repurchase programs, currency movements, expenses, pricing, new product launches, market reach, statements relating to possible future dividends, and the Company's plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 27, 2025 filed by Garmin with the Securities and Exchange Commission (Commission file number 001-41118). A copy of Garmin's 2025 Form 10-K can be downloaded from https://investors.garmin.com/financials/sec-filings/default.aspx. All information provided in this release and in the attachments is as of September 26, 2026. We undertake no duty to update this information unless required by law.

This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments.

Garmin, the Garmin logo, the Garmin delta, Edge, fēnix, G1000, G2000, and JL Audio are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. CIRQA, Garmin Drive, Garmin Pilot, SmartDrive, GMI, and LiveScope are trademarks of Garmin Ltd. or its subsidiaries.  All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

Investor Relations Contact:	Media Relations Contact:
Teri Seck	Krista Klaus
+1 913 397 8200	+1 913 397 8200
investor.relations@garmin.com	media.relations@garmin.com

 

Garmin Ltd. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share information)
		13-Weeks Ended								39-Weeks Ended
		September 26,				September 27,				September 26,				September 27,
		2026				2025				2026				2025
Net sales		$	1,986,076			$	1,770,901			$	5,761,658			$	5,120,564
Cost of goods sold			728,308				724,414				2,199,580				2,122,521
Gross profit			1,257,768				1,046,487				3,562,078				2,998,043
Research and development expense			312,916				286,464				912,673				831,247
Selling, general and administrative expenses			333,204				303,220				990,584				904,874
Total operating expense			646,120				589,684				1,903,257				1,736,121
Operating income			611,648				456,803				1,658,821				1,261,922
Other income (expense):
Interest income			36,357				32,085				110,504				94,316
Foreign currency gains			9,788				20,334				10,417				21,582
Other income			3,329				598				4,970				1,329
Total other income (expense)			49,474				53,017				125,891				117,227
Income before income taxes			661,122				509,820				1,784,712				1,379,149
Income tax provision			119,461				108,205				296,052				243,943
Net income		$	541,661			$	401,615			$	1,488,660			$	1,135,206
Net income per share:
Basic		$	2.81			$	2.09			$	7.72			$	5.90
Diluted		$	2.80			$	2.08			$	7.69			$	5.87
Weighted average common shares outstanding:
Basic			192,836				192,464				192,782				192,510
Diluted			193,617				193,533				193,556				193,551

 

Garmin Ltd. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In thousands)
		September 26, 2026				December 27, 2025
Assets
Current assets:
Cash and cash equivalents		$	2,039,779			$	2,278,646
Marketable securities			299,693				459,202
Accounts receivable, net			1,137,167				1,253,015
Inventories			2,251,741				1,772,257
Deferred costs			12,508				17,538
Prepaid expenses and other current assets			742,631				467,558
Total current assets			6,483,519				6,248,216
Property and equipment, net			1,496,143				1,375,348
Operating lease right-of-use assets			207,636				196,183
Noncurrent marketable securities			1,727,086				1,396,929
Deferred income tax assets			704,893				718,094
Noncurrent deferred costs			3,918				4,373
Goodwill			978,557				760,241
Other intangible assets, net			270,875				198,362
Other noncurrent assets			121,156				95,923
Total assets		$	11,993,783			$	10,993,669
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	500,671			$	347,493
Salaries and benefits payable			256,762				228,267
Accrued warranty costs			76,874				72,921
Accrued sales program costs			113,724				153,193
Other accrued expenses			271,233				257,651
Deferred revenue			119,858				105,646
Income taxes payable			384,351				381,549
Dividend payable			404,779				173,351
Total current liabilities			2,128,252				1,720,071
Deferred income tax liabilities			116,224				109,701
Noncurrent income taxes payable			3,325				3,596
Noncurrent deferred revenue			22,400				22,277
Noncurrent operating lease liabilities			173,491				164,835
Other noncurrent liabilities			565				625
Stockholders' equity:
Common shares, $0.10 par value (194,901 and 194,901 shares authorized and issued; 192,757 and 192,620 shares outstanding)			19,490				19,490
Additional paid-in capital			2,425,759				2,368,670
Treasury shares (2,144 and 2,281 shares)			(468,628)				(406,423)
Retained earnings			7,648,939				6,970,182
Accumulated other comprehensive income (loss)			(76,034)				20,645
Total stockholders' equity			9,549,526				8,972,564
Total liabilities and stockholders' equity		$	11,993,783			$	10,993,669

 

Garmin Ltd. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)
		39-Weeks Ended
		September 26, 2026				September 27, 2025
Operating Activities:
Net income		$	1,488,660			$	1,135,206
Adjustments to reconcile net income to net cash provided by    operating activities:
Depreciation			122,519				115,633
Amortization			26,692				26,874
(Gain) loss on sale or disposal of property and equipment			(639)				375
Unrealized foreign currency gains			(7,347)				(37,606)
Deferred income taxes			33,523				19,324
Stock compensation expense			133,526				125,003
Realized loss on marketable securities			587				857
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net of allowance for doubtful accounts			102,946				68,818
Inventories			(488,774)				(324,880)
Other current and noncurrent assets			(266,274)				(18,466)
Accounts payable			156,023				(7,531)
Other current and noncurrent liabilities			5,978				1,944
Deferred revenue			3,642				(11,603)
Deferred costs			5,486				8,703
Income taxes			16,851				(23,077)
Net cash provided by operating activities			1,333,399				1,079,574
Investing activities:
Purchases of property and equipment			(294,982)				(146,273)
Purchase of marketable securities			(632,001)				(724,091)
Redemption of marketable securities			403,842				531,804
Net payments for acquisitions			(320,588)				(175,655)
Other investing activities, net			2,388				387
Net cash used in investing activities			(841,341)				(513,828)
Financing activities:
Dividends			(578,474)				(490,919)
Proceeds from issuance of treasury shares related to equity awards			31,425				29,065
Purchase of treasury shares related to equity awards			(47,069)				(33,476)
Purchase of treasury shares under share repurchase plan			(123,206)				(130,149)
Net cash used in financing activities			(717,324)				(625,479)
Effect of exchange rate changes on cash and cash equivalents			(13,570)				53,125
Net decrease in cash, cash equivalents, and restricted cash			(238,836)				(6,608)
Cash, cash equivalents, and restricted cash at beginning of period			2,279,360				2,080,154
Cash, cash equivalents, and restricted cash at end of period		$	2,040,524			$	2,073,546

 

Garmin Ltd. and Subsidiaries Net Sales, Gross Profit and Operating Income by Segment (Unaudited) (In thousands)
		Fitness				Outdoor				Aviation				Marine				Auto OEM				Total
13-Weeks Ended September 26, 2026
Net sales		$	694,328			$	597,301			$	252,657			$	309,878			$	131,912			$	1,986,076
Gross profit			434,456				406,731				196,421				198,442				21,718				1,257,768
Operating income (loss)			230,634				233,043				65,835				93,994				(11,858)				611,648
13-Weeks Ended September 27, 2025
Net sales		$	601,013			$	497,598			$	240,445			$	267,005			$	164,840			$	1,770,901
Gross profit			362,849				329,749				180,708				148,238				24,943				1,046,487
Operating income (loss)			193,600				169,734				60,768				49,396				(16,695)				456,803
39-Weeks Ended September 26, 2026
Net sales		$	1,997,974			$	1,497,571			$	785,248			$	1,006,262			$	474,603			$	5,761,658
Gross profit			1,253,701				1,016,992				595,702				604,781				90,902				3,562,078
Operating income (loss)			665,293				515,416				208,936				284,598				(15,422)				1,658,821
39-Weeks Ended September 27, 2025
Net sales		$	1,591,159			$	1,426,451			$	712,926			$	885,704			$	504,324			$	5,120,564
Gross profit			947,661				936,713				534,082				496,509				83,078				2,998,043
Operating income (loss)			468,943				456,402				172,508				199,181				(35,112)				1,261,922

 

Garmin Ltd. and Subsidiaries Net Sales by Geography (Unaudited) (In thousands)
		13-Weeks Ended												39-Weeks Ended
		September 26,				September 27,				YoY				September 26,				September 27,				YoY
		2026				2025				Change				2026				2025				Change
Net sales		$	1,986,076			$	1,770,901			12 %				$	5,761,658			$	5,120,564			13 %
Americas			913,081				795,624			15 %					2,714,100				2,419,371			12 %
EMEA			778,021				692,557			12 %					2,200,935				1,938,912			14 %
APAC			294,974				282,720			4 %					846,623				762,281			11 %
Americas - North America & South America; EMEA - Europe, Middle East & Africa; APAC - Asia Pacific & Australian Continent

Non-GAAP Financial Information

To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma effective tax rate, pro forma net income (earnings) per share and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below. 

The tables below provide reconciliations between the GAAP and non-GAAP measures.

Pro forma effective tax rate

The Company's income tax expense is occasionally impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the first three quarters of 2026 and 2025 there were no such discrete tax items identified.

Pro forma net income (earnings) per share

Management believes net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure to permit a consistent comparison of the Company's performance between periods.

(In thousands, except per share information)		13-Weeks Ended								39-Weeks Ended
		September 26,				September 27,				September 26,				September 27,
		2026				2025				2026				2025
GAAP net income		$	541,661			$	401,615			$	1,488,660			$	1,135,206
Foreign currency gains / losses(1)			(9,788)				(20,334)				(10,417)				(21,582)
Tax effect of foreign currency gains / losses(2)			1,769				4,316				1,728				3,817
Pro forma net income		$	533,642			$	385,597			$	1,479,971			$	1,117,441
GAAP net income per share:
Basic		$	2.81			$	2.09			$	7.72			$	5.90
Diluted		$	2.80			$	2.08			$	7.69			$	5.87
Pro forma net income per share:
Basic		$	2.77			$	2.00			$	7.68			$	5.80
Diluted		$	2.76			$	1.99			$	7.65			$	5.77
Weighted average common shares outstanding:
Basic			192,836				192,464				192,782				192,510
Diluted			193,617				193,533				193,556				193,551

(1) Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at a given legal entity.  However, there is minimal cash impact from such foreign currency gains and losses.
(2) The tax effect of foreign currency gains was calculated using the effective tax rates of 18.1% and 16.6% for the 13-weeks and 39-weeks ended September 26, 2026, respectively, and 21.2% and 17.7% for the 13-weeks and 39-weeks ended September 27, 2025, respectively.

Free cash flow

Management believes free cash flow is an important liquidity measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property and equipment. Management believes excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company's operations and allows more accurate comparisons of the Company's results between periods. This metric may also be useful to investors but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is net cash provided by operating activities.

(In thousands)		13-Weeks Ended								39-Weeks Ended
		September 26,				September 27,				September 26,				September 27,
		2026				2025				2026				2025
Net cash provided by operating activities		$	393,855			$	485,616			$	1,333,399			$	1,079,574
Less: purchases of property and equipment			(100,587)				(60,483)				(294,982)				(146,273)
Free cash flow		$	293,268			$	425,133			$	1,038,417			$	933,301

Forward-looking Financial Measures

The forward-looking measures in our 2026 guidance include certain economic assumptions such as foreign currency exchange rates and tariffs which are fluid and can rapidly change favorably or unfavorably.

The forward-looking financial measures in our 2026 guidance provided above do not consider the potential future net effect of foreign currency exchange gains and losses, certain discrete tax items and any other impacts that may be identified as pro forma adjustments in calculating the non-GAAP measures described above. 

The estimated impact of foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact on diluted net income per share of foreign currency gains and losses, net of tax effects, was $0.04 per share for the 39-week period ended September 26, 2026.

At this time, management is unable to determine whether or not significant discrete tax items will occur in fiscal 2026, estimate the impact of any such items, or anticipate the impact of any other events that may be considered in the calculation of non-GAAP financial measures.

 

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SOURCE Garmin Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Garmin's third-quarter 2026 earnings results?

Garmin reported $1.99 billion revenue and $2.80 GAAP diluted earnings per share for the quarter ended September 26, 2026. Revenue increased 12% and GAAP diluted earnings per share increased 35% from the prior-year quarter. Operating income increased 34% to $612 million.

What is Garmin's raised full-year 2026 guidance?

Garmin now anticipates approximately $8.15 billion revenue and $10.80 pro forma earnings per share for 2026. Its outlook includes a 61.0% gross margin, a 29.0% operating margin and a 16.5% full-year tax rate. Pro forma earnings per share is a non-GAAP measure.

Why did Garmin's effective tax rate fall in the third quarter of 2026?

Garmin attributes the lower effective tax rate primarily to increased expected U.S. deductions under provisions of U.S. tax legislation enacted in 2025 that became effective in 2026. The third-quarter effective tax rate was 18.1%, compared with 21.2% in the prior-year quarter.

When is Garmin's next dividend payment?

Garmin's next dividend installment of $1.05 per share is payable December 24, 2026, with a December 11, 2026 record date. Shareholders approved a total dividend of $4.20 per share payable in four equal installments. The first two payments were made June 26 and September 25, 2026.