Garmin Ltd. (NYSE:GRMN) released its third-quarter fiscal 2026 earnings on October 28, 2026, reporting record consolidated revenue and operating income for the 13 weeks ended September 26, 2026, while raising its full-year 2026 revenue and earnings guidance.

Key Highlights

  • Record quarterly revenue: Net sales reached $1,986,076 thousand, a 12% increase compared to the prior year quarter.
  • Record operating income: Operating income of $611,648 thousand represented a 34% increase year over year, with an operating margin of 30.8%.
  • Earnings per share: GAAP diluted EPS was $2.80 and pro forma diluted EPS was $2.76, the latter representing a 39% increase compared to the prior year quarter.
  • Guidance raised: The company now anticipates full-year 2026 revenue of approximately $8.15 billion and pro forma EPS of $10.80, based on gross margin of 61.0% and operating margin of 29.0%.
  • Auto OEM decline: Revenue from the auto OEM segment decreased 20% in the third quarter, primarily due to domain controllers, with an operating loss of $12 million.
  • Capital returns: A quarterly dividend of $202 million was paid and $41 million of shares were repurchased in the quarter, with approximately $407 million remaining under the $500 million repurchase program authorized through December 2028.
  • Cash position: The company ended the quarter with cash and marketable securities of approximately $4.1 billion.

Garmin's Q3 2026 Segment Results and Financial Details

According to the filing, Garmin reported record consolidated gross margin of 63.3% for the third quarter ended September 26, 2026, an expansion of 420 basis points compared to the prior year quarter. The company attributed this increase primarily to favorable segment mix, lower product cost, and approximately $33 million in refunds of previously paid tariffs. Total operating expenses were $646 million, a 10% increase over the prior year, driven by personnel-related costs in both research and development and selling, general and administrative categories.

Among the five business segments, Outdoor posted the strongest year-over-year revenue growth at 20%, reaching $597,301 thousand, with operating income of $233 million and an operating margin of 39%, according to the filing. The company disclosed the launch of the fenix 9 and fenix 9 Pro series during the quarter. Fitness revenue grew 16% to $694,328 thousand, producing $231 million in operating income. Marine revenue also rose 16% to $309,878 thousand, led by the sonar product category, while Aviation grew 5% to $252,657 thousand, driven primarily by OEM product categories. The auto OEM segment reported revenue of $131,912 thousand, a 20% decline, and recorded an operating loss of $12 million with a gross margin of 16%.

The company reported that the effective tax rate in the third quarter was 18.1%, down from 21.2% in the prior year quarter. The filing attributed the decrease primarily to an increase in expected U.S. deductions related to certain provisions of U.S. tax legislation enacted in 2025 that became effective in 2026. Operating cash flows for the quarter were $394 million and free cash flow was $293 million. The Board of Directors established December 24, 2026, as the payment date for the next quarterly dividend installment of $1.05 per share, with a record date of December 11, 2026.

What Was Disclosed

Garmin reported record Q3 2026 net sales of approximately $1.99 billion and operating income of approximately $612 million, raised its full-year 2026 guidance to approximately $8.15 billion in revenue and $10.80 in pro forma EPS, and detailed segment-level revenue, margin, and product launch activity.