Garmin Shares Surge After Record Revenue Report and Strong Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GRMN?
Source: Fool
- Record Financials: Garmin reported record revenue across all five segments, with Q4 revenue up 17% year-over-year and total sales increasing 15%, surpassing the initial guidance of 8% growth for 2025, indicating robust market demand and management's optimistic outlook.
- Stock Surge: Following the earnings report, Garmin's stock jumped over 18% in early trading and settled 16.4% higher, reflecting strong investor confidence in the company's future growth potential, especially with a P/E ratio below 27, suggesting further upside.
- Dividend and Buyback Plans: The company recommended a 17% increase in dividends for this year and established a new $500 million share repurchase authorization, replacing the previous plan with only $56 million remaining, demonstrating strong cash flow and commitment to shareholder returns.
- Strong Financial Position: Garmin boasts over $4 billion in cash and equivalents with no debt, showcasing a solid financial foundation that enables continued investment and shareholder rewards, further enhancing market confidence.
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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: 216.980
Low
217.00
Averages
259.00
High
310.00
Current: 216.980
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 Reports 17% Revenue Growth to $2.12 Billion in Q4
- Significant Revenue Growth: Garmin reported a 17% year-on-year revenue increase to $2.12 billion, surpassing the analyst consensus estimate of $2.02 billion, indicating strong performance and competitiveness in the market.
- Segment Performance: Revenue from the Fitness segment surged 42% year-on-year to $765.84 million, primarily driven by robust demand for advanced wearables, reflecting ongoing consumer interest in health technology products.
- Shareholder Return Plans: The Board plans to increase the quarterly dividend per share by 17% to $1.05 and authorized a share repurchase program of up to $500 million from 2026 to 2028, demonstrating confidence in future cash flows and commitment to shareholders.
- Optimistic Outlook: Garmin expects 2026 revenue of $7.9 billion, exceeding the analyst consensus estimate of $7.631 billion, with an adjusted EPS forecast of $9.35, indicating that the company's strategic focus on new product launches will continue to drive growth.
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- Stock Surge: Following the earnings report, Garmin's stock jumped over 18% in early trading and settled 16.4% higher, reflecting strong investor confidence in the company's future growth potential, especially with a P/E ratio below 27, suggesting further upside.
- Dividend and Buyback Plans: The company recommended a 17% increase in dividends for this year and established a new $500 million share repurchase authorization, replacing the previous plan with only $56 million remaining, demonstrating strong cash flow and commitment to shareholder returns.
- Strong Financial Position: Garmin boasts over $4 billion in cash and equivalents with no debt, showcasing a solid financial foundation that enables continued investment and shareholder rewards, further enhancing market confidence.
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- Significant Revenue Growth: Garmin reported a 17% year-on-year revenue increase to $2.12 billion, surpassing the analyst consensus estimate of $2.02 billion, indicating strong performance and competitiveness in the market.
- Segment Performance: Revenue from the Fitness segment surged 42% year-on-year to $765.84 million, primarily driven by robust demand for advanced wearables, reflecting ongoing consumer interest in health technology products.
- Shareholder Return Plans: The Board plans to increase the quarterly dividend per share by 17% to $1.05 and authorized a share repurchase program of up to $500 million from 2026 to 2028, demonstrating confidence in future cash flows and commitment to shareholders.
- Optimistic Outlook: Garmin expects 2026 revenue of $7.9 billion, exceeding the analyst consensus estimate of $7.631 billion, with an adjusted EPS forecast of $9.35, indicating that the company's strategic focus on new product launches will continue to drive growth.
See More
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- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the real estate market that may enhance investment confidence in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which could strengthen market confidence in economic recovery.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, reflecting ongoing improvements in corporate profitability that may further drive stock market gains.
See More
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- Record Financials: Garmin reported record revenue across all five segments, with Q4 revenue up 17% year-over-year and total sales increasing 15%, surpassing the initial guidance of 8% growth for 2025, indicating robust market demand and management's optimistic outlook.
- Stock Surge: Following the earnings report, Garmin's stock jumped over 18% in early trading and settled 16.4% higher, reflecting strong investor confidence in the company's future growth potential, especially with a P/E ratio below 27, suggesting further upside.
- Dividend and Buyback Plans: The company recommended a 17% increase in dividends for this year and established a new $500 million share repurchase authorization, replacing the previous plan with only $56 million remaining, demonstrating strong cash flow and commitment to shareholder returns.
- Strong Financial Position: Garmin boasts over $4 billion in cash and equivalents with no debt, showcasing a solid financial foundation that enables continued investment and shareholder rewards, further enhancing market confidence.
See More
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- Outlook Cut Affects Stock: Cybersecurity firm Palo Alto Networks (PANW) saw its shares drop by 6% after lowering its full-year earnings outlook, indicating market concerns over its future profitability and potentially diminishing investor confidence.
- Earnings Season Pressure: As of February 13, 74% of S&P 500 companies have reported earnings, with a blended growth rate of 13.2%, which, if sustained, would mark the index's tenth consecutive quarter of annual earnings growth, showcasing resilience in overall market performance.
- Mixed Competitor Performance: General Mills (GIS) experienced a 6% drop in stock price due to disappointing earnings, while online trading platform eToro (ETOR) surged over 20% following a strong quarterly performance, highlighting varied market reactions to different companies.
- Upcoming Earnings Focus: Investors will closely monitor upcoming earnings reports from Walmart (WMT) and Deere & Co. (DE), among others, as these results could significantly influence market sentiment and investment decisions.
See More
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- Sales Miss: The quarterly sales of $175.694 million fell short of the analyst consensus estimate of $177.533 million, yet the overall performance reflects the company's resilience in a competitive fast-food market.
- Stock Surge: Following the earnings report, Wingstop's shares jumped 17.3% to $295.31 on Wednesday, signaling optimistic investor sentiment and potentially attracting more institutional interest in the stock.
- Positive Market Reaction: The broader U.S. stock market rose, with the Dow Jones index gaining around 250 points on Wednesday, and Wingstop's strong performance further fueled market optimism, reflecting investor confidence in the recovery of the restaurant sector.
See More
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- AI Partnership Agreement: Nvidia and Meta have signed a deal for Meta to utilize millions of Nvidia's Blackwell chips and networking technology in its data centers, which, while undisclosed in value, is expected to significantly enhance Meta's competitive edge in the AI sector.
- Positive Market Reaction: Following the announcement, both Nvidia and Meta saw slight increases in their pre-market stock prices, indicating market confidence in their AI expansion efforts, which could lay the groundwork for future growth.
- Optimistic Industry Outlook: Microsoft forecasts global AI spending to reach $650 billion by 2026, a 60% increase year-over-year, highlighting the rapid expansion of the AI market, positioning Nvidia and Meta favorably within this trend.
- CEO Insights: Nvidia's CEO Jensen Huang emphasized deep collaboration with Meta, while Meta's Mark Zuckerberg expressed aspirations to deliver “personal superintelligence” to users worldwide, showcasing the ambitious vision both companies have for the future of AI.
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