Garmin (GRMN)
NYSE:GRMN
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Garmin
(NYSE:GRMN)
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Rating:82Outperform
Price Target:
$287.00
▲(7.32% Upside)
Action:ReiteratedDate:04/29/26
GRMN scores well primarily due to excellent financial quality (strong profitability, robust free cash flow, and a very conservative balance sheet) and a favorable earnings update with maintained guidance and improving margins. The score is moderated by a mixed technical picture (near-term weakness despite a longer-term uptrend) and a valuation that reflects a premium multiple with only a modest dividend yield.
Positive Factors
High margins and profitability
Sustained high gross and net margins reflect durable pricing power and an efficient cost structure across hardware and services. These margins support reinvestment in R&D, consistent shareholder returns, and create a cushion against cyclical revenue swings, aiding multi-quarter earnings resilience.
Negative Factors
Elevated inventory and working-capital build
A near-$1.9B inventory position ties up liquidity and raises obsolescence and margin risk in consumer segments where product cycles are fast. Higher working capital can suppress operating cash flow relative to earnings and reduce optionality for share repurchases or opportunistic investments in the short-to-medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and profitability
Sustained high gross and net margins reflect durable pricing power and an efficient cost structure across hardware and services. These margins support reinvestment in R&D, consistent shareholder returns, and create a cushion against cyclical revenue swings, aiding multi-quarter earnings resilience.
Read all positive factors
Garmin (GRMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.81B
Dividend Yield1.7%
Average Volume (3M)727.38K
Price to Earnings (P/E)23.8
Beta (1Y)0.95
Revenue Growth15.06%
EPS Growth17.65%
CountryUS
Employees21,800
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.08
Shares Outstanding192,883,360
10 Day Avg. Volume793,597
30 Day Avg. Volume727,383
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 Cap0.96
Enterprise Value/Revenue6.26
Enterprise Value/Gross Profit10.58
Enterprise Value/Ebitda20.66
Forecast
1Y Price Target
$255.40Price Target Upside-4.49% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)9.4
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 primarily makes money by selling hardware devices and integrated systems across its operating segments, with revenue recognized from product sales to consumers, dealers/distributors, retailers, and commercial/industrial customers. In Fitnes...
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:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 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
88
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.46B | 7.25B | 6.30B | 5.23B | 4.86B | 4.98B |
| Gross Profit | 4.41B | 4.26B | 3.70B | 3.00B | 2.81B | 2.89B |
| EBITDA | 2.26B | 2.06B | 1.77B | 1.27B | 1.19B | 1.37B |
| Net Income | 1.74B | 1.66B | 1.41B | 1.29B | 973.59M | 1.08B |
Balance Sheet | ||||||
| Total Assets | 10.95B | 10.99B | 9.63B | 8.60B | 7.73B | 7.85B |
| Cash, Cash Equivalents and Short-Term Investments | 2.70B | 2.74B | 2.50B | 1.97B | 1.45B | 1.85B |
| Total Debt | 167.62M | 164.84M | 162.79M | 113.03M | 114.54M | 70.04M |
| Total Liabilities | 1.68B | 2.02B | 1.78B | 1.59B | 1.53B | 1.74B |
| Stockholders Equity | 9.27B | 8.97B | 7.85B | 7.01B | 6.20B | 6.11B |
Cash Flow | ||||||
| Free Cash Flow | 1.45B | 1.36B | 1.24B | 1.18B | 542.07M | 702.84M |
| Operating Cash Flow | 1.75B | 1.63B | 1.43B | 1.38B | 788.26M | 1.01B |
| Investing Cash Flow | -765.00M | -645.24M | -393.33M | -332.97M | -145.12M | -475.37M |
| Financing Cash Flow | -899.33M | -844.08M | -626.86M | -636.51M | -840.62M | -486.71M |
Garmin Technical Analysis
Positive
267.42
Price Trends
238.31
Positive
220.84
Positive
224.38
Positive
Market Momentum
8.38
Negative
71.66
Negative
90.98
Negative
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 267.42 is above the 20-day moving average (MA) of 246.52, above the 50-day MA of 238.31, and above the 200-day MA of 224.38, indicating a bullish trend. The MACD of 8.38 indicates Negative momentum. The RSI at 71.66 is Negative, neither overbought nor oversold. The STOCH value of 90.98 is Negative, 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $48.81B | 23.77 | 19.72% | 1.70% | 15.06% | 17.65% | |
75 Outperform | $59.91B | 17.32 | 16.50% | 1.21% | 16.66% | 114.94% | |
74 Outperform | $130.48B | 79.05 | 14.13% | 1.25% | 20.05% | 298.15% | |
71 Outperform | $8.94B | 46.06 | 7.72% | 0.89% | 8.73% | 10.05% | |
67 Neutral | $59.54B | 48.81 | 3.58% | ― | 18.63% | ― | |
63 Neutral | $15.38B | 43.86 | 7.46% | ― | -2.61% | -71.05% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
GRMN
Garmin
253.08
69.24
37.66%
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COHR
Coherent Corp
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374.08%
TEL
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205.25
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42.24%
TRMB
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6.66%
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.