Garmin Q3 Operating Income Jumps 34% to $612M, Raises 2026 Outlook
Schaffhausen – October 29, 2026 -- Garmin Ltd. (NYSE: GRMN) posted record third-quarter operating income of $612 million, up 34% year on year, and raised its full-year 2026 guidance after revenue rose 12% to a record $1.99 billion.
Margins expand 420 basis points as tariff refunds add $33 million
Consolidated gross margin reached 63.3%, up 420 basis points, with higher margins in every segment. Garmin attributed the gain to favorable segment mix, lower product costs and about $33 million in refunds of previously paid tariffs. Operating margin was 30.8%. Pro forma EPS rose 39% to $2.76, while GAAP EPS was $2.80.
Operating expenses grew 10% to $646 million. R&D rose 9% on personnel costs, and SG&A rose 10% on personnel and advertising. The effective tax rate fell to 18.1% from 21.2%, which Garmin linked to higher expected U.S. deductions under tax legislation enacted in 2025 that took effect in 2026.