Shares of Garmin surged 6.1% to $296.98 as investors digested a blowout third quarter that was buried on report day by a broader tech selloff. The company posted pro forma EPS of $2.76, topping the Street's $2.38 consensus by $0.38 — a nearly 16% earnings surprise.

Management simultaneously raised full-year 2026 revenue guidance to $8.15 billion (from $8.05 billion) and EPS to $10.80 (from $10.00). That $0.80 jump in the earnings outlook deserved more than the 5.8% selloff it initially received on October 28 — and the market is now correcting that mispricing.

  • A Massive Earnings Beat Got Lost in a Bad Tape. On October 28, Garmin shares fell 5.8% to $272.51 amid a broader market decline. The rebound to $296.98 signals that fundamental buyers are stepping in now that the noise has cleared. J.P. Morgan maintained a Neutral rating but raised its price target from $295 to $310 , suggesting even skeptics see more value after the guidance raise.

  • Wearables and Outdoor Gear Are Doing the Heavy Lifting. Fitness revenue grew 16%, driven by strong demand for wearables, while the Outdoor segment surged 20%, led by the Fenix 9 adventure watch series.

Marine added 16% growth and Aviation rose 5%. But Auto OEM revenue dropped 20% to $132 million and posted an operating loss — a reminder that Garmin's car-tech ambitions remain a drag on profitability.

  • Margin Expansion Tells the Real Story. Gross margin expanded 420 basis points (percentage points) to 63.3%, boosted by a better product mix, lower component costs, and $33 million in tariff refunds.

Operating margin guidance was lifted to 29% for the full year, 200 basis points above the prior forecast. Investors should note this isn't purely organic: management warned that higher memory-chip costs will pressure margins in Q4 , meaning the profit trajectory could flatten.

  • The Guidance Raise Outpaces Wall Street's Models. Garmin initially guided for $7.9 billion in revenue and $9.35 EPS when the fiscal year began. Three raises later, the bar sits at $8.15 billion and $10.80 — a 15.5% EPS uplift in ten months. The company has beaten consensus EPS estimates in all four of the last quarters. At roughly 27× trailing earnings, the stock isn't cheap, but serial beat-and-raise cycles tend to keep premium valuations intact — until growth decelerates.