Garmin 3Q 2026: Revenue $1.99B, EPS $2.8— 10-Q Summary

What happened

Garmin reported third-quarter 2026 revenue of $1.99 billion, up 12% from $1.77 billion a year earlier. Net income rose 34.9% to $541.7 million, and diluted earnings per share, which means profit per share, rose 34.6% to $2.80.

Confirmed

Global impact / market context

Faster profit growth than sales growth shows Garmin kept more profit per sale, helped by lower product costs and tariff refunds, which are repayments of import taxes. That supports cash generation, but management warned about memory-chip constraints that could add supply-chain complexity and costs.

Analyst inference

Nine-month sales rose 13% with unit sales up about 9%, led by fitness wearables up 26%, marine up 14%, while auto OEM fell 6%. Gross margins improved across all segments. The company made inventory prepayments, which means paying early to secure critical components.

Analyst inference

What to watch

1. Management said memory-chip constraints could pressure future gross margin and add supply-chain complexity and costs, so watch whether those constraints slow sales growth or raise expenses in coming quarters. Confirmed
2. Garmin made inventory prepayments to secure critical components, which means paying suppliers early; watch whether this ties up more cash and affects cash available if component shortages persist. Confirmed
3. Watch segment trends: fitness led nine-month growth at 26% on wearable demand, marine rose 14%, and auto OEM declined 6%, so weakness in auto OEM could offset strength elsewhere. Analyst inference

Evidence

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