Garmin (GRMN) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 12% to $1,986,076k; operating income increased 34% to $611,648k and pro forma EPS rose 39% to $2.76.

• Record results across markets and product launches supported higher FY26 revenue and pro forma EPS guidance.

Financial highlights

• Q3 gross profit increased 20% to $1,257,768k; gross margin expanded 420 bps to 63.3%, supported by favorable mix, lower product costs and $33M in tariff refunds.

• GAAP net income was $541,661k; GAAP diluted EPS was $2.80 and pro forma EPS was $2.76, up 39% YoY.

• 9M revenue rose 13% to $5,761,658k; operating income increased 31% to $1,658,821k and net income rose to $1,488,660k.

• Q3 operating expenses increased 10% to $646,120k; R&D rose 9% and SG&A rose 10%, primarily reflecting personnel costs.

Outlook and guidance

• FY26 guidance rose to $8.15B revenue and $10.80 pro forma EPS; assumptions include 61% gross margin, 29% operating margin and a 16.5% tax rate.

• FY26 free cash flow is forecast at ~$1.1B and capital expenditures at ~$500M; FCF guidance declined due to higher inventory and prepayments.

• Higher memory costs are expected to weigh more heavily on Q4 margins; FY27 consolidated gross margin is expected to return to its historical range, primarily due to memory costs.

• Guidance excludes potential FX gains or losses, discrete tax items and other pro forma adjustments; FX and tariff assumptions may change.