Garmin (GRMN)
NYSE:GRMN
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Garmin
(NYSE:GRMN)
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Rating:84Outperform
Price Target:
$278.00
▲(15.22% Upside)
Action:ReiteratedDate:02/19/26
GRMN scores well primarily on high-quality financial performance (strong profitability, minimal leverage, solid and improving cash generation) and supportive technical momentum (price above key moving averages with positive MACD). The main offset is valuation, where a ~25x P/E and modest yield reduce attractiveness, while the latest earnings call adds confidence via upbeat 2026 growth guidance and enhanced shareholder returns despite manageable cost and inventory risks.
Positive Factors
Balance Sheet Health
Garmin's very conservative balance sheet with minimal debt and growing equity provides durable financial flexibility. Low leverage supports ongoing dividends, buybacks, elevated capex for capacity expansion, and cushions operations against cyclical downturns or rising interest rates without risking solvency.
Negative Factors
Auto OEM Weakness
Auto OEM generated an operating loss and faces declining revenue as legacy programs end and BMW volumes peak. Structural program timing and OEM platform cycles can create prolonged revenue gaps, require retooling or new program wins, and pressure consolidated margins until replacement programs ramp.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Health
Garmin's very conservative balance sheet with minimal debt and growing equity provides durable financial flexibility. Low leverage supports ongoing dividends, buybacks, elevated capex for capacity expansion, and cushions operations against cyclical downturns or rising interest rates without risking solvency.
Read all positive factors
Garmin (GRMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.44B
Dividend Yield1.7%
Average Volume (3M)794.68K
Price to Earnings (P/E)23.8
Beta (1Y)0.94
Revenue Growth16.56%
EPS Growth3.19%
CountryUS
Employees21,800
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.79
Shares Outstanding192,480,830
10 Day Avg. Volume574,458
30 Day Avg. Volume794,684
Financial Highlights & Ratios
PEG Ratio1.34
Price to Book (P/B)4.41
Price to Sales (P/S)5.46
P/FCF Ratio29.02
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue6.42
Enterprise Value/Gross Profit10.93
Enterprise Value/Ebitda21.97
Forecast
1Y Price Target
$252.40Price Target Upside4.61% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)9.39
Revenue Forecast (FY)$7.99B
Garmin Business Overview & Revenue Model
Company Description
Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices in the Americas, the Asia Pacific, Australian Continent, Europe, the Middle East, and Africa. Its Fitness segment offers running and multi-sport watc...
How the Company Makes Money
Garmin generates revenue through multiple streams, primarily by selling hardware products in its key segments: automotive, aviation, marine, fitness, and outdoor. The automotive segment includes navigation devices and infotainment systems, while t...
Garmin Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyGarmin Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial achievements: record consolidated and segment revenues, expanded operating margins, robust free cash flow, a 17% dividend increase, and a $500M share repurchase program. Management provided constructive 2026 guidance (revenue +9%, EPS +9%) while acknowledging manageable headwinds including memory cost pressure, tariffs, elevated inventory, higher capex, and an auto OEM segment loss that is expected to improve but see near-term revenue declines. The positives (broad-based demand, margin expansion, record operating income, cash generation, and shareholder returns) materially outweigh the contained challenges.Positive Updates
Record Consolidated Revenue and Strong Annual Growth
Full year 2025 consolidated revenue of $7.246B, up 15% year-over-year and a new annual record; Q4 2025 revenue of $2.125B, up 17% year-over-year and Garmin's first quarter above $2.0B.
Negative Updates
Auto OEM Segment Losses and Near-Term Weakness
Full year auto OEM revenue increased 9% to $665M but produced a $49M operating loss; company expects auto OEM revenue to decrease in 2026 as certain legacy programs end and BMW volumes peak.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Consolidated Revenue and Strong Annual Growth
Full year 2025 consolidated revenue of $7.246B, up 15% year-over-year and a new annual record; Q4 2025 revenue of $2.125B, up 17% year-over-year and Garmin's first quarter above $2.0B.
Read all positive updates
Company Guidance
Garmin guided 2026 consolidated revenue of approximately $7.9 billion (≈+9% vs. 2025), with gross margin around 58.5% (down ~20 bps), operating margin about 25.5% and operating income expected to exceed $2.0 billion for the first time; pro forma EPS is forecast at roughly $9.35 (≈+9% vs. 2025 pro forma EPS $8.56) with a pro forma effective tax rate near 16% (≈-140 bps). Management noted the guide already reflects industry memory cost pressure and tariff impacts, and expects higher product costs partially offset by favorable segment mix and supply‑chain/inventory actions (inventory was about $1.8B at year‑end). Cash and marketable securities were ~ $4.1B and accounts receivable ~ $1.3B; they expect free cash flow of ~ $1.4B in 2026 with capital expenditures of ~ $400M (vs. $270M in 2025) to support a new Thailand facility. The company proposed a $4.20 annual dividend ($1.05/quarter, +17%) and the Board approved a $500M share repurchase program through Dec. 2028; qualitatively, Garmin expects fitness to be the largest contributor to 2026 consolidated growth, outdoor growth to accelerate (stronger in H2), aviation to grow in line with historical norms, marine to be consistent with 2025, and Auto OEM revenue to decline while operating losses narrow.Garmin Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.25B | 6.30B | 5.23B | 4.86B | 4.98B |
| Gross Profit | 4.26B | 3.70B | 3.00B | 2.81B | 2.89B |
| EBITDA | 2.06B | 1.77B | 1.27B | 1.19B | 1.37B |
| Net Income | 1.66B | 1.41B | 1.29B | 973.59M | 1.08B |
Balance Sheet | |||||
| Total Assets | 10.99B | 9.63B | 8.60B | 7.73B | 7.85B |
| Cash, Cash Equivalents and Short-Term Investments | 2.74B | 2.50B | 1.97B | 1.45B | 1.85B |
| Total Debt | 164.84M | 162.79M | 113.03M | 114.54M | 70.04M |
| Total Liabilities | 2.02B | 1.78B | 1.59B | 1.53B | 1.74B |
| Stockholders Equity | 8.97B | 7.85B | 7.01B | 6.20B | 6.11B |
Cash Flow | |||||
| Free Cash Flow | 1.36B | 1.24B | 1.18B | 542.07M | 702.84M |
| Operating Cash Flow | 1.63B | 1.43B | 1.38B | 788.26M | 1.01B |
| Investing Cash Flow | -645.24M | -393.33M | -332.97M | -145.12M | -475.37M |
| Financing Cash Flow | -844.08M | -626.86M | -636.51M | -840.62M | -486.71M |
Garmin Technical Analysis
Positive
241.27
Price Trends
229.10
Positive
215.25
Positive
222.05
Positive
Market Momentum
1.63
Positive
55.93
Neutral
74.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRMN, the sentiment is Positive. The current price of 241.27 is above the 20-day moving average (MA) of 236.05, above the 50-day MA of 229.10, and above the 200-day MA of 222.05, indicating a bullish trend. The MACD of 1.63 indicates Positive momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 74.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRMN.
Garmin Risk Analysis
Garmin disclosed 36 risk factors in its most recent earnings report. Garmin reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Many of our products rely on satellite systems and networks. Disruption to our use of those satellite systems and networks could harm our business. Q4, 2025
Garmin Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $46.44B | 23.77 | 19.72% | 1.70% | 16.56% | 3.19% | |
72 Outperform | $61.91B | 22.78 | 16.50% | 1.21% | 8.94% | -39.90% | |
71 Outperform | $8.57B | 46.06 | 7.72% | 0.89% | 10.23% | 25.53% | |
66 Neutral | $127.42B | 47.18 | 14.13% | 1.25% | 18.27% | 771.78% | |
63 Neutral | $47.83B | 48.81 | 3.58% | ― | 20.80% | ― | |
63 Neutral | $15.02B | 43.86 | 7.46% | ― | -0.86% | -75.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
GRMN
Garmin
241.27
51.68
27.26%
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TEL
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TRMB
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4.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.