Garmin reported record third-quarter results, with revenue rising 12% from a year earlier to nearly $1.99 billion and operating income climbing 34% to $612 million. Growth across most of its businesses, alongside higher margins, lifted earnings per share; the company also raised its full-year 2026 outlook as it heads into the holiday selling season.
The quarter’s strongest growth came from Outdoor and Fitness, while Marine also posted a solid gain. Auto OEM was the exception, with sales declining 20%.
Key details
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Margins and earnings increased faster than revenue. Gross margin expanded to 63.3%, from 59.1% a year earlier, and operating margin rose to 30.8%, from 25.8%. GAAP diluted earnings per share were $2.80, up 35%; pro forma diluted EPS was $2.76, up 39%.
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Fitness revenue increased 16% to $694 million, led by demand for wearables. The segment recorded a 63% gross margin and a 33% operating margin, producing $231 million in operating income. Garmin introduced the screenless CIRQA Smart Band and announced new Edge cycling computers, including the Edge 1060 with hands-free voice control.
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Outdoor revenue rose 20% to $597 million, primarily on demand for adventure watches. The segment posted a 68% gross margin and a 39% operating margin, with $233 million in operating income. Garmin launched the fēnix 9 and fēnix 9 Pro watch series, as well as new Drive GPS navigators.
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Marine revenue grew 16% to $310 million. Garmin said it was named Manufacturer of the Year by the National Marine Electronics Association for the 12th consecutive year and received six Product of Excellence awards.
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Aviation revenue increased 5% to $253 million, with growth mainly in original-equipment products. The segment had a 78% gross margin and a 26% operating margin, generating $66 million in operating income. Garmin introduced the G2000 PRIME flight deck and announced certification of an all-glass retrofit cockpit for the original Cessna CitationJet. It also highlighted certification of its Autoland system on the Pilatus PC-12 Pro and Epic e1000 aircraft.
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Auto OEM revenue fell 20% to $132 million, the only decline among the five reported segments.
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Garmin cited two aviation milestones: delivery of its 1,000th G1000 integrated flight-deck retrofit for King Air aircraft, and more than 2,500 aircraft equipped with Autoland. Garmin describes Autoland as a certified system designed to take control and land an aircraft during an emergency without human interaction.
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Year-to-date results remained strong. For the first nine months of 2026, revenue was $5.76 billion, up 13%; operating income rose 31% to $1.66 billion. GAAP diluted EPS increased 31% to $7.69, while pro forma diluted EPS rose 33% to $7.65.
Garmin said it raised its 2026 outlook based on results to date and momentum entering the holiday season. The announcement provided no revised guidance figures in the material presented here. The results show broad-based growth and substantial margin expansion, although the Auto OEM business moved in the opposite direction.