Why Garmin Stock Soared Today
Key Points
Garmin's fitness division is expanding at a rapid pace.
Wearables should remain a key growth driver.
- 10 stocks we like better than Garmin ›
Shares of Garmin (NYSE: GRMN) gained on Wednesday after the navigational device maker boosted its full-year sales and profit forecast.
Image source: Getty Images.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Earnings grew much faster than expected
Garmin's revenue rose 11% year over year to $2 billion in its fiscal second quarter, which ended on June 27.
This growth was fueled by a 14% jump in the GPS-enabled product manufacturer's marine sales to $341 million and a 25% surge in its fitness revenue to $757 million.
New product launches, such as Garmin Signal VHF marine radios and Forerunner smartwatches, contributed to the gains.
Garmin's profit margins also expanded. Its gross margin increased 3.6 percentage points to 62.4%, due in part to tariff refunds and a more favorable product mix.
All told, the Swiss device maker's operating income climbed 30% to $616 million, while its adjusted earnings per share increased 29% to $2.81. That crushed Wall Street's estimates, which had called for per-share profits of $2.29.
Fitness trends should continue to fuel Garmin's growth
These strong results and encouraging ongoing sales trends prompted Garmin to lift its full-year financial outlook. Management now expects revenue of $8.05 billion and adjusted earnings of $10 per share. That's up from a prior forecast of $7.9 billion in revenue and $9.35 in EPS.
During a conference call with analysts, CEO Cliff Pemble said Garmin is well-positioned to profit from rising usage of connected fitness apps and wearable devices.
"We are very pleased with these results and continue to expect the fitness segment will be the strongest contributor to 2026 consolidated growth," Pemble said.
Should you buy stock in Garmin right now?
Before you buy stock in Garmin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Garmin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Garmin. The Motley Fool has a disclosure policy.
Recommended Articles
