Garmin Raises 2026 Guidance to $8.15 Billion Revenue and $10.80 Pro Forma EPS

Garmin raised its 2026 guidance. The company now expects $8.15 billion in revenue and $10.80 in pro forma earnings per share.

Third-quarter revenue increased 12% to nearly $2 billion, and gross margin was 63.3%. Demand was stronger in Fitness and Outdoor. Improved tariff refunds contributed to Garmin’s raised 2026 guidance.

Garmin expects higher memory and raw-material costs to bring gross margins toward a more historical range. The company is increasing inventory and making prepayments to secure components, affecting free cash flow. It plans to use vertical integration and scale to offset cost pressures.