Why Is Garmin Stock Falling Today?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2024
0mins
Should l Buy GRMN?
Source: Benzinga
BofA Securities downgrades Garmin to Underperform, cutting the price target from $165 to $150.
Analyst cites decelerating momentum and potential margin headwinds from the AutoOEM segment as concerns.
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Analyst Views on GRMN
Wall Street analysts forecast GRMN stock price to rise
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 242.820
Low
217.00
Averages
259.00
High
310.00
Current: 242.820
Low
217.00
Averages
259.00
High
310.00
About GRMN
Garmin Ltd. (Garmin) is a Switzerland-based entity. The Company and its subsidiaries offer global positioning system (GPS) navigation and wireless devices and applications. The Company operates through five segments: fitness, outdoor, aviation, marine and auto. It offers a range of auto navigation products, as well as a range of products and applications designed for the mobile GPS market. It offers Outdoor Handhelds, Wearable Devices, Golf Devices, and Dog Tracking and Training/Pet Obedience Devices. Garmin offers various products designed for use in fitness and activity tracking. Company’s aviation business segment is a provider of solutions to aircraft manufacturers, existing aircraft owners and operators, as well as military and government customers and serves a range of aircraft, including transport aircraft, business aviation, general aviation, experimental/light sport, helicopters, optionally piloted vehicles, and unmanned aerial vehicles. Company operates worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Garmin Receives Best Supplier Award for 11th Consecutive Year from Embraer
- Award Recognition: Garmin was awarded the Best Supplier of the Year by Embraer during the 2026 Embraer Suppliers Conference, marking the 11th consecutive year of receiving this honor, which underscores Garmin's excellence and continuous innovation in the avionics sector.
- Commitment to Quality: The award specifically recognizes Garmin's quality and customer support for the G3000® Prodigy Touch flight deck systems in the Phenom 100EV and Phenom 300E, further solidifying its leadership position in the aviation market.
- Industry Accolades: Over the past 16 years, Embraer has presented Garmin with 18 top honors across various categories, demonstrating Garmin's contributions to continuous improvement and customer satisfaction in electrical and electronic systems and technical support.
- Technological Innovation: Garmin's products and services have become essential for pilots and aircraft owners worldwide, with the Garmin Autoland system being the world's first certified autonomous system, showcasing Garmin's leadership in aviation technology innovation.
See More
Garmin Ltd. Reports Record Q1 2026 Earnings with 14% Revenue Growth
- Significant Revenue Growth: Garmin's Q1 2026 revenue reached $1.75 billion, marking a 14% year-over-year increase and setting a new first-quarter record, indicating strong market performance and sustained customer demand.
- Margin Expansion: Gross margin increased to 59.4% and operating margin reached 24.6%, resulting in operating income of $432 million, up 30% year-over-year, reflecting successful strategies in cost control and product pricing.
- Optimistic Future Outlook: Despite facing tariff cost pressures, management maintains its full-year guidance for 2026, expecting stronger performance in the second half due to product launches, demonstrating confidence in future market conditions.
- Robust Cash Flow: The company generated $469 million in free cash flow during Q1, with cash and marketable securities totaling approximately $4.3 billion, showcasing strong financial health and ongoing shareholder return capabilities.
See More
Garmin Reports Record First Quarter Revenue and Operating Income
- Significant Revenue Growth: Garmin achieved net sales of $1,753,489 thousand in Q1 2026, marking a 14% year-over-year increase, with the fitness segment alone growing by 42%, demonstrating strong demand in the wearable market and solidifying its market leadership.
- Operating Income Surge: The company reported operating income of $431,665 thousand for the first quarter, a 30% increase from the previous year, with an operating margin of 24.6%, reflecting successful cost control and product optimization, enhancing the sustainability of future profitability.
- Strong Cash Flow Performance: Garmin generated $536,000 thousand in operating cash flow and $469,000 thousand in free cash flow during Q1, showcasing robust cash generation capabilities that provide ample funding for future investments and shareholder returns.
- Shareholder Return Plan: The company announced a recommendation for a cash dividend of $4.20 per share to shareholders, payable in four installments, demonstrating its commitment to shareholders while reflecting its solid financial health and ongoing profitability.
See More
Garmin Q1 Earnings Exceed Expectations
- Strong Earnings Performance: Garmin reported a Q1 non-GAAP EPS of $2.08, beating expectations by $0.24, which reflects the company's robust profitability and enhances market confidence in its financial health.
- Significant Revenue Growth: The company achieved Q1 revenue of $1.75 billion, representing a 13.6% year-over-year increase and exceeding market expectations by $40 million, indicating sustained growth in Garmin's core business and strong market demand.
- Guidance Maintained: Garmin is maintaining its fiscal year 2026 revenue guidance at approximately $7.9 billion, slightly below the consensus of $7.98 billion, yet the stability in earnings expectations demonstrates management's confidence in future performance.
- Dividend Increase: Garmin raised its dividend by 16.7% to $1.05 per share, reflecting the company's commitment to shareholder returns and indicating a healthy cash flow position that supports ongoing shareholder return policies.
See More
Garmin Set to Announce Q1 Earnings with Strong Estimates
- Earnings Announcement: Garmin is scheduled to release its Q1 earnings on April 29 before market open, with consensus EPS estimates at $1.84, reflecting a 14.3% year-over-year growth, indicating sustained profitability.
- Strong Revenue Projections: Analysts expect Garmin's Q1 revenue to reach $1.71 billion, marking an 11.0% year-over-year increase, which highlights the company's robust market demand and sales performance.
- Impressive Historical Performance: Over the past two years, Garmin has beaten EPS estimates 75% of the time and revenue estimates 88% of the time, showcasing its reliability in financial forecasting and market confidence.
- Positive Revision Trends: In the last three months, Garmin's EPS estimates have seen six upward revisions with no downward adjustments, and revenue estimates have experienced four upward revisions, reflecting analysts' optimistic outlook on the company's future performance.
See More
U.S. Stocks Edge Up as PepsiCo and TSMC Shine
- PepsiCo's Quarter Performance: PepsiCo achieved its first volume growth in North American food business in two years, with CEO Ramon Laguarta addressing the industry's threat from GLP-1 weight-loss drugs, leading to a 1% rise in shares, demonstrating the company's resilience and adaptability in a competitive consumer goods market.
- TSMC Profit Surge: TSMC reported a 58% year-over-year profit increase, despite facing challenges with shortages of industrial gases; management noted a 'little bit softer' memory pricing, indicating ongoing demand and competitive pressures in advanced chip manufacturing that could impact future profitability.
- J.B. Hunt Transport Services: J.B. Hunt indicated the start of a new cycle with positive demand signals, reporting a first-quarter earnings beat and a 1% premarket share increase, reflecting potential growth opportunities in the transportation sector.
- Analyst Rating Changes: JPMorgan downgraded Corning to hold and cut its price target from $175 to $115, citing the need for greater earnings visibility to support stock upside, indicating a cautious market outlook on the company's future performance.
See More
Garmin Receives Best Supplier Award for 11th Consecutive Year from Embraer
- Award Recognition: Garmin was awarded the Best Supplier of the Year by Embraer during the 2026 Embraer Suppliers Conference, marking the 11th consecutive year of receiving this honor, which underscores Garmin's excellence and continuous innovation in the avionics sector.
- Commitment to Quality: The award specifically recognizes Garmin's quality and customer support for the G3000® Prodigy Touch flight deck systems in the Phenom 100EV and Phenom 300E, further solidifying its leadership position in the aviation market.
- Industry Accolades: Over the past 16 years, Embraer has presented Garmin with 18 top honors across various categories, demonstrating Garmin's contributions to continuous improvement and customer satisfaction in electrical and electronic systems and technical support.
- Technological Innovation: Garmin's products and services have become essential for pilots and aircraft owners worldwide, with the Garmin Autoland system being the world's first certified autonomous system, showcasing Garmin's leadership in aviation technology innovation.
See More
Garmin Ltd. Reports Record Q1 2026 Earnings with 14% Revenue Growth
- Significant Revenue Growth: Garmin's Q1 2026 revenue reached $1.75 billion, marking a 14% year-over-year increase and setting a new first-quarter record, indicating strong market performance and sustained customer demand.
- Margin Expansion: Gross margin increased to 59.4% and operating margin reached 24.6%, resulting in operating income of $432 million, up 30% year-over-year, reflecting successful strategies in cost control and product pricing.
- Optimistic Future Outlook: Despite facing tariff cost pressures, management maintains its full-year guidance for 2026, expecting stronger performance in the second half due to product launches, demonstrating confidence in future market conditions.
- Robust Cash Flow: The company generated $469 million in free cash flow during Q1, with cash and marketable securities totaling approximately $4.3 billion, showcasing strong financial health and ongoing shareholder return capabilities.
See More
Garmin Reports Record First Quarter Revenue and Operating Income
- Significant Revenue Growth: Garmin achieved net sales of $1,753,489 thousand in Q1 2026, marking a 14% year-over-year increase, with the fitness segment alone growing by 42%, demonstrating strong demand in the wearable market and solidifying its market leadership.
- Operating Income Surge: The company reported operating income of $431,665 thousand for the first quarter, a 30% increase from the previous year, with an operating margin of 24.6%, reflecting successful cost control and product optimization, enhancing the sustainability of future profitability.
- Strong Cash Flow Performance: Garmin generated $536,000 thousand in operating cash flow and $469,000 thousand in free cash flow during Q1, showcasing robust cash generation capabilities that provide ample funding for future investments and shareholder returns.
- Shareholder Return Plan: The company announced a recommendation for a cash dividend of $4.20 per share to shareholders, payable in four installments, demonstrating its commitment to shareholders while reflecting its solid financial health and ongoing profitability.
See More
Garmin Q1 Earnings Exceed Expectations
- Strong Earnings Performance: Garmin reported a Q1 non-GAAP EPS of $2.08, beating expectations by $0.24, which reflects the company's robust profitability and enhances market confidence in its financial health.
- Significant Revenue Growth: The company achieved Q1 revenue of $1.75 billion, representing a 13.6% year-over-year increase and exceeding market expectations by $40 million, indicating sustained growth in Garmin's core business and strong market demand.
- Guidance Maintained: Garmin is maintaining its fiscal year 2026 revenue guidance at approximately $7.9 billion, slightly below the consensus of $7.98 billion, yet the stability in earnings expectations demonstrates management's confidence in future performance.
- Dividend Increase: Garmin raised its dividend by 16.7% to $1.05 per share, reflecting the company's commitment to shareholder returns and indicating a healthy cash flow position that supports ongoing shareholder return policies.
See More
Garmin Set to Announce Q1 Earnings with Strong Estimates
- Earnings Announcement: Garmin is scheduled to release its Q1 earnings on April 29 before market open, with consensus EPS estimates at $1.84, reflecting a 14.3% year-over-year growth, indicating sustained profitability.
- Strong Revenue Projections: Analysts expect Garmin's Q1 revenue to reach $1.71 billion, marking an 11.0% year-over-year increase, which highlights the company's robust market demand and sales performance.
- Impressive Historical Performance: Over the past two years, Garmin has beaten EPS estimates 75% of the time and revenue estimates 88% of the time, showcasing its reliability in financial forecasting and market confidence.
- Positive Revision Trends: In the last three months, Garmin's EPS estimates have seen six upward revisions with no downward adjustments, and revenue estimates have experienced four upward revisions, reflecting analysts' optimistic outlook on the company's future performance.
See More
U.S. Stocks Edge Up as PepsiCo and TSMC Shine
- PepsiCo's Quarter Performance: PepsiCo achieved its first volume growth in North American food business in two years, with CEO Ramon Laguarta addressing the industry's threat from GLP-1 weight-loss drugs, leading to a 1% rise in shares, demonstrating the company's resilience and adaptability in a competitive consumer goods market.
- TSMC Profit Surge: TSMC reported a 58% year-over-year profit increase, despite facing challenges with shortages of industrial gases; management noted a 'little bit softer' memory pricing, indicating ongoing demand and competitive pressures in advanced chip manufacturing that could impact future profitability.
- J.B. Hunt Transport Services: J.B. Hunt indicated the start of a new cycle with positive demand signals, reporting a first-quarter earnings beat and a 1% premarket share increase, reflecting potential growth opportunities in the transportation sector.
- Analyst Rating Changes: JPMorgan downgraded Corning to hold and cut its price target from $175 to $115, citing the need for greater earnings visibility to support stock upside, indicating a cautious market outlook on the company's future performance.
See More
