Oct 28, 2026 earnings call — Record quarter and higher full-year guidance
Garmin raised its full-year revenue outlook to $8.15 billion and expects pro forma EPS of $10.80.
Revenue $2.0B (est $2.0B) · EPS $2.76 (est $2.41) · Next-quarter revenue outlook $8.2B
Key quotes
"As announced earlier today, Garmin achieved another quarter of record breaking financial results in a continuation of the positive trends we have been experiencing over the long term."
"As previously mentioned, our results will soon reflect the higher cost of memory and other raw materials which have increased significantly since last year driven by both high demand and limited supplies."
"During the quarter, we launched the CIRQL Smart Ring, a screenless wearable offering rich wellness and fitness insights that expands our addressable market for wellness devices."
Analyst Q&A 8
new product demand and gross margins
Q (Timothy Long · Barclays): Analyst asked about ramp and demand for the Fenix 9 (Phoenix) series and CIRQL over coming quarters. He also asked for clarity on gross margin drivers and what to expect next year.
A: Management said the new launches were very successful and they are still catching up on initial demand, especially for CIRQL, while Phoenix is also very strong. They are working to fill backlog. On gross margin they said memory costs had a small impact in Q3 and will have more impact in Q4, and multiple factors (segment mix, FX, tariffs) will affect 2027 margins.
"So then the other thing relating to memory costs, we did see a small impact of increased memory cost in Q3, but there will be more impact you know, in Q4." — Douglas Gerard Boessen (CFO)
wearables competition and Garmin position
Q (Erik Woodring · Morgan Stanley): Analyst asked how the competitive landscape in wearables is evolving, where Garmin is strengthening, and where pressure is increasing.
A: Management said the wearables market is very competitive but many players are already entrenched. They noted competitors are catching up on health and fitness features, and Garmin believes it continues to lead in product features, sensor capability, and helping users on health or fitness journeys.
"Many of them are catching up to what we have known all along that health and fitness are very important drivers of interest in wearables." — Clifton Albert Pemble (CEO)
fitness trends and Connect Plus uptake
Q (Joseph Cardoso · JPMorgan): Analyst asked about fitness trends: registrations, sell-through, inventory, new users, durability into Q4/holidays. He also asked about Garmin Connect Plus adoption and feature strategy.
A: Management said registrations are a near real-time pulse on demand; registrations outpaced sell-in, suggesting some channel destocking as retailers prepare for holiday stock. They said Connect Plus has outpaced expectations with strong renewals after free trials, people sign up even for CIRQL, and some features (like nutrition) are already offered through Connect Plus while core product features remain on devices.
"In terms of registration, you know, that is something we watch very closely, and it is really a near real time pulse on the overall market." — Clifton Albert Pemble (CEO)
seasonal sell-in and Thailand factory timing
Q (Longbow): Analyst asked whether seasonal sell-in is abnormal or tied to the election, and asked for an update on the Thailand manufacturing facility timing and when capitalization ends.
A: Management said they do not see any aberration and cannot tie retailer behavior to the election; retailer interest in Q4 promotions is strong and they are working to fill holiday orders. They said they are on track to open the new Thailand facility and expect production to start in the first quarter of 27; once production begins, related costs will flow through the goods and hit the P&L.
"As it relates to when it starts hitting the P&L when it basically gets into production, that point in time, it will go through." — Douglas Gerard Boessen (CFO)
Phoenix buyers and CIRQL demand
Q (Ivan Feinseth · Tigris Financial Partners): Analyst asked what portion of Phoenix buyers are new versus upgrades and which models they upgrade from. He also asked about CIRQL trade-offs vs other products, avionics retrofit options, and timing for Mercedes ramp.
A: Management said initial Phoenix demand is especially strong from existing users, mostly upgrading from more than one generation old, and new users increase as the product moves through the channel. They said CIRQL demand exceeded expectations with customers choosing it for a screenless approach; avionics Autoland is being applied to both original equipment and retrofit; Mercedes ramp timing is expected early in the year but will follow Mercedes' order and ramp schedule.
"Initial demand, particularly, is very strong from existing users who are upgrading mostly from more than 1 generation old." — Clifton Albert Pemble (CEO)
tariff refunds and marine demand
Q (Noah Zatzkin · KeyBanc): Analyst asked whether additional tariff refunds are expected in Q4 or beyond and for run-rate impact. He also asked how management sees the marine end market in the off season.
A: Douglas said they have received the majority of their tariff refunds but expect a smaller remaining amount either in Q4 or 2027 depending on government processing. Management said the marine end market is a bit soft right now overall but has bright spots in mid-range new boats and refit activity; high fuel prices are likely a headwind and some buyers are taking a wait-and-see posture in the off season.
"So we have received the majority of our refunds." — Douglas Gerard Boessen (CFO)
new users vs refresh; inventory prepayments
Q (Benjamin Bollin · Cleveland): Analyst asked how sales outside Phoenix split between new users and refreshers for Forerunner, Venu, CIRQL, and asked for detail on inventory prepayments structure and flexibility.
A: Management said outside Phoenix the new-user profile is very strong—products like CIRQL, Vivoactive, and entry-level running models attract significant new users. Douglas said inventory prepayments are used case-by-case to secure memory supply amid constraints and are negotiated with suppliers depending on the situation.
"I think the new user profile outside of Phoenix is very, very strong, heavily weighted towards new users." — Clifton Albert Pemble (CEO)
avionics parts shortages and drone market
Q (Ronald Epstein · Bank of America Merrill Lynch): Analyst asked how avionics is handling shortages for parts like PCBs and cables given a different supply chain, and whether Garmin sees an opportunity in drones after import law changes.
A: Management said the memory situation and AI build-out create second-order availability and pricing issues across parts including PCBs and cables, and Garmin leverages its scale and supplier relationships to meet niche aviation needs. On drones, management said consumer drone market is mature and saturated, military use is a different focus, and Garmin will focus on markets where it can advance technology rather than entering drone markets where it lacks core expertise.
"I think there is definitely second order effects driven by the memory situation and the overall AI build out." — Clifton Albert Pemble (CEO)