Key Moments
- Garmin (NYSE:GRMN) stock climbed 6.29% after reporting first quarter revenue and EPS above analyst forecasts.
- Quarterly revenue reached $1.75 billion, up 14% year over year and ahead of the $1.72 billion consensus, with adjusted EPS of $2.08 up 29% from a year earlier.
- Despite the beat, Garmin reaffirmed its fiscal 2026 revenue outlook of $7.9 billion and full-year EPS guidance of $9.35, while Bank of America kept an Underperform rating.
Robust First Quarter Performance
Garmin (NYSE:GRMN) shares advanced 6.29% on Thursday after the company released first quarter results that topped Wall Street expectations on both the top and bottom lines.
For the quarter ended March 28, Garmin reported revenue of $1.75 billion, representing a 14% year-over-year increase and surpassing the analyst consensus of $1.72 billion. Adjusted earnings per share were $2.08, ahead of the $1.82 per share expected by analysts and 29% higher than in the same period a year earlier.
Operating profitability also improved. Operating margins rose to 24.6%, an expansion of 293 basis points compared with the prior year period. The company indicated that the double-digit revenue gain reflected sustained demand across its product portfolio, while the margin improvement pointed to better operational efficiency during the quarter.
| Metric | Reported | Consensus / Prior | Year-over-Year Change |
|---|---|---|---|
| Revenue | $1.75 billion | $1.72 billion (consensus) | +14% |
| Adjusted EPS | $2.08 | $1.82 (consensus) | +29% |
| Operating Margin | 24.6% | n/a | +293 bps |
Guidance and Analyst Reaction
Despite the outperformance in the first quarter, Garmin left its fiscal 2026 revenue outlook unchanged at $7.9 billion, which remains below the analyst consensus of $7.97 billion. The company also reaffirmed its full-year earnings per share guidance of $9.35, which is in line with Wall Street estimates.
Bank of America analysts acknowledged the strength of the latest results but maintained a cautious stance on the stock, reiterating their Underperform rating. They stated that “the results were strong” yet added, “We continue to see GRMN as fully priced,” highlighting their view even after Garmin exceeded revenue and earnings expectations in the quarter.
Broad-Based Business Strength
The quarterly report indicated that Garmin experienced solid momentum across its business segments. The company noted that the double-digit revenue growth captured ongoing demand for its products, while the expansion in operating margins reflected greater efficiency in running the business during the reporting period.
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