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Garmin
(NYSE:GRMN)
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Rating:85Outperform
Price Target:
$346.00
▲(42.37% Upside)
Action:Reiterated
Date:07/30/26
GRMN scores well primarily due to standout financial quality (high margins, strong free cash flow, and extremely conservative balance sheet) and a clear upward price trend versus key moving averages. The main offsets are a less attractive valuation (P/E 28.12 with a ~1.27% yield) and earnings-call risks around tariffs, inventory levels, and Auto OEM weakness, even though guidance was maintained and Q1 execution was strong.
Positive Factors
High and Durable Profitability
Sustained, above-industry hardware margins provide durable cash generation and pricing leverage. High gross and operating margins allow funding for R&D, product launches, and shareholder returns, reducing reliance on growth to drive profitability and supporting long-term earnings resilience.
Negative Factors
Elevated Inventory and Working Capital Build
Large inventory ties up cash and raises risk of obsolescence or markdowns, especially for hardware with product cycles. While positioned as safety stock, persistent elevated inventories can pressure future cash conversion and margin if demand shifts or product timing slips over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Durable Profitability
Sustained, above-industry hardware margins provide durable cash generation and pricing leverage. High gross and operating margins allow funding for R&D, product launches, and shareholder returns, reducing reliance on growth to drive profitability and supporting long-term earnings resilience.
Read all positive factors
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 (GRMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.66B
Dividend Yield1.28%
Average Volume (3M)879.21K
Price to Earnings (P/E)30.1
Beta (1Y)0.96
Revenue Growth13.51%
EPS Growth19.53%
CountryUS
Employees23,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)9.75
Shares Outstanding192,852,540
10 Day Avg. Volume864,274
30 Day Avg. Volume879,207
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$301.50Price Target Upside24.06% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)9.96
Revenue Forecast (FY)$8.08B
Garmin Business Overview & Revenue Model
Company Description
Garmin Ltd. specializes in the design, development, manufacturing, marketing, and global distribution of diverse wireless products and solutions. Its operations span across North and South America, the Asia Pacific region, the Australian Continent...
How the Company Makes Money
Garmin primarily makes money by selling hardware products across its operating segments to consumers, retailers, distributors, dealers/installers, and commercial/industrial customers. (1) Product revenue: The largest driver is device and equipment...
Garmin Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call highlights a very strong start to 2026 with record first-quarter revenue and operating income, meaningful margin expansion, robust cash generation, and significant growth in key segments (notably Fitness +42%, Aviation +18%, Marine +11%). Management acknowledged some near-term headwinds—Outdoor decline versus a tough comp, tariff-related margin pressure (notably in Marine), elevated inventory, and an expected decline in auto OEM for 2026 with Mercedes ramping in 2027. Component cost inflation is flagged as a more pronounced risk in 2027. Overall, the positives (broad revenue growth, margin expansion, product momentum, and cash strength) outweigh the contained and largely forward-looking challenges.Positive Updates
Record First Quarter Revenue and Profitability
Consolidated revenue increased 14% year-over-year to $1.753 billion, a new first quarter record. Operating income was a record $432 million, up 30% YoY, with pro forma EPS of $2.08 (up 29% YoY) and GAAP EPS of $2.09.
Negative Updates
Outdoor Segment Decline vs Strong Prior-Year Compare
Outdoor revenue decreased 5% YoY to $418 million, primarily due to a difficult comparable period that included the prior-year Instinct 3 launch. Management expects Q2 to be similar to Q1 with stronger H2 from product timing.
Read all updates
Q1-2026 Updates
Positive
Negative
Record First Quarter Revenue and Profitability
Consolidated revenue increased 14% year-over-year to $1.753 billion, a new first quarter record. Operating income was a record $432 million, up 30% YoY, with pro forma EPS of $2.08 (up 29% YoY) and GAAP EPS of $2.09.
Read all positive updates
Company Guidance
Garmin said it is maintaining the guidance it issued in February after a strong Q1: consolidated revenue was $1.753 billion (up 14% YoY), gross margin 59.4% (+180 bps), operating margin 24.6% (+290 bps), operating income $432 million (up 30%), pro forma EPS $2.08 (GAAP EPS $2.09), free cash flow $469 million, cash and marketable securities ~$4.3 billion, accounts receivable $941 million, inventory ~$1.9 billion, CapEx $67 million, dividends paid ~$174 million, share repurchases $40 million (with ~$491 million remaining through Dec 2028), and an effective tax rate of 14.3%; management reiterated that Fitness should be the largest contributor to 2026 consolidated growth, expects Outdoor to be similar in Q2 to Q1 and stronger in the back half (driving improved full‑year growth vs. 2025), anticipates solid Aviation growth and Marine growth roughly consistent with last year, and foresees Auto OEM revenue down in 2026 with a narrowed but still GAAP‑loss‑making segment; they also noted operating expense as a percent of sales should be relatively consistent year‑over‑year, some tariff headwinds are expected to remain for the year (no tariff refund receivable recorded), and higher input costs are largely managed in 2026 but may flow through more in 2027.Garmin Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.67B | 7.25B | 6.30B | 5.23B | 4.86B | 4.98B |
| Gross Profit | 4.61B | 4.26B | 3.70B | 3.00B | 2.81B | 2.89B |
| EBITDA | 2.41B | 2.20B | 1.88B | 1.38B | 1.23B | 1.36B |
| Net Income | 1.88B | 1.66B | 1.41B | 1.29B | 973.59M | 1.08B |
Balance Sheet | ||||||
| Total Assets | 11.42B | 10.99B | 9.63B | 8.60B | 7.73B | 7.85B |
| Cash, Cash Equivalents and Short-Term Investments | 2.67B | 2.74B | 2.50B | 1.97B | 1.45B | 1.85B |
| Total Debt | 177.96M | 195.99M | 162.79M | 113.03M | 114.54M | 70.04M |
| Total Liabilities | 2.39B | 2.02B | 1.78B | 1.59B | 1.53B | 1.74B |
| Stockholders Equity | 9.03B | 8.97B | 7.85B | 7.01B | 6.20B | 6.11B |
Cash Flow | ||||||
| Free Cash Flow | 1.53B | 1.36B | 1.24B | 1.18B | 542.07M | 702.84M |
| Operating Cash Flow | 1.91B | 1.63B | 1.43B | 1.38B | 788.26M | 1.01B |
| Investing Cash Flow | -795.80M | -645.24M | -393.33M | -332.97M | -145.12M | -475.37M |
| Financing Cash Flow | -815.17M | -844.08M | -626.86M | -636.51M | -840.62M | -486.71M |
Garmin Technical Analysis
Positive
243.03
Price Trends
242.63
Positive
242.85
Positive
227.89
Positive
Market Momentum
1.07
Positive
52.20
Neutral
30.76
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 243.03 is below the 20-day moving average (MA) of 251.99, above the 50-day MA of 242.63, and above the 200-day MA of 227.89, indicating a bullish trend. The MACD of 1.07 indicates Positive momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 30.76 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 0 New Risks
Garmin Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $56.66B | 30.13 | 21.00% | 1.54% | 13.51% | 19.53% | |
78 Outperform | $59.55B | 19.99 | 23.18% | 1.43% | 16.53% | 110.98% | |
73 Outperform | $10.86B | 75.86 | 9.56% | 0.54% | 13.81% | 23.79% | |
70 Neutral | $13.19B | 29.47 | 7.95% | ― | 3.25% | -68.85% | |
66 Neutral | $119.09B | 62.56 | 15.93% | 0.76% | 19.41% | 131.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $51.43B | 114.80 | 5.26% | ― | 18.00% | ― |
* Technology Sector Average
GRMN
Garmin
293.78
71.89
32.40%
CGNX
Cognex
65.24
24.09
58.56%
GLW
Corning
138.25
75.45
120.13%
COHR
Coherent Corp
262.89
156.15
146.29%
TEL
TE Connectivity
205.69
4.48
2.23%
TRMB
Trimble
56.58
-27.67
-32.84%
Garmin Corporate Events
Executive/Board ChangesDividendsFinancial DisclosuresShareholder Meetings
Garmin Shareholders Approve Dividend Plan and Governance Matters
Positive
Jun 8, 2026
On June 5, 2026, Garmin shareholders met in Schaffhausen, Switzerland for the company’s annual general meeting, where they approved the 2025 annual report and financial statements, the appropriation of available earnings, and discharged the ...
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.