Why Garmin Stock Soared in July and Is at an All-Time High

Garmin (NYSE: GRMN) makes many popular devices for runners, boaters, pilots, hunters, and bikers, and its stock is getting popular too. The maker of wearable smartwatches and wireless GPS devices announced another stellar quarter in July, sending shares soaring.

The stock is now up 53% this year, after jumping 23.7% in July, according to data provided by S&P Global Market Intelligence. Management raised guidance for the year after a strong second quarter. The company is firing on all cylinders, and the stock is even cheaper than it looks. Here's why.

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Fitness is in great shape

After announcing record revenue that increased 11% year over year, Garmin boosted its full-year revenue and earnings guidance to imply 11% year-over-year revenue growth and almost 17% earnings per share (EPS) growth.

All five business segments are contributing to Garmin's success. The outdoor segment was the only one with slightly declining sales, but it provided more operating income than in Q1, thanks to higher gross and operating margins.

Fitness is the standout, though. Advanced wearables led the segment to 25% year-over-year sales growth. That growth rate is 32% for the first half of this year, following a 33% increase in 2025 over 2024. Investors who were worried about lost sales from the Apple Watch and other competitors can seemingly dismiss those fears.

Garmin has even entered a new category with its Cirqa Smart Band. This screen-free wearable provides comprehensive wellness and fitness insights without requiring a subscription, helping to expand its potential market.

Garmin's secret weapon

The future looks bright for Garmin's business. But investors might wonder if the pop in the stock price makes shares too expensive. There's good reason to think that's not the case, though. On the surface, shares look pricey. Garmin stock is trading at a price-to-earnings (P/E) of 31 based on the company's latest 2026 guidance. That seems expensive compared to its three-year average of about 25. But there's a better way to look at it.

Garmin ended Q2 with $4.4 billion in cash and equivalents. Importantly, it also has no debt. That's over 7% of its market cap, and investors should consider that. That effectively drops the forward P/E to under 29.

While still relatively high, it's also certainly possible that earnings exceed current guidance, bringing the valuation even lower. That cash will also bring value for shareholders in the future. Whether through growth investments, acquisitions, share buybacks, or raised dividends, that money should find its way back to the owners of Garmin stock. It may not be a good time to invest a lump sum in Garmin stock, but long-term investors can still expect solid returns.

Howard Smith has positions in Apple and Garmin and has the following options: short October 2026 $330 calls on Garmin. The Motley Fool has positions in and recommends Apple and Garmin. The Motley Fool has a disclosure policy.