Garmin on Wednesday issued guidance for its fiscal year that eclipses Wall Street forecasts, driven primarily by strong consumer interest in higher-end wearable and fitness devices. The company said its upbeat outlook helped push its shares up 13% in premarket trading.
The maker of navigation and wearable products reported a 17% year-over-year increase in total revenue to $2.12 billion for the fourth quarter, topping analysts' average estimate of $2.02 billion. Adjusted earnings for the quarter were $2.79 per share, also ahead of the $2.40 per share forecast.
Fitness revenue was a standout, rising 42% to about $765.8 million in the fourth quarter. Garmin attributed that gain to demand for recently introduced models, including the Venu 4 and Bounce 2 smartwatches.
For the 2026 fiscal year, Garmin expects total revenue of $7.9 billion, above the $7.63 billion consensus compiled by LSEG. On an adjusted basis, the company anticipates full-year earnings of $9.35 per share versus analysts' expectation of $8.70 per share.
The company highlighted that its growth is visible across several end markets - wellness devices, marine systems and private aviation - even as consumer demand remains uneven. Garmin pointed to the combination of its sales-channel mix and its ownership of manufacturing facilities as factors that enabled the firm to adapt to shifting demand patterns while maintaining profitability.
Garmin’s distribution approach blends a global network of independent retailers, dealers, distributors, installers and original equipment manufacturers with direct-to-consumer sales through its online stores, subscription services and company-owned retail outlets. The company framed this diversified route-to-market as an operational strength in managing variable consumer preferences.
Implications for markets and sectors
The company’s forecast and quarterly results underscore momentum in consumer wearables and connected fitness hardware, with implications for electronics retailing and subscription services linked to device ecosystems. Garmin’s mention of growth in marine systems and private aviation points to pockets of resilience in those specialized equipment markets.
Note: The article reflects only the information Garmin provided in its financial report and guidance; it does not introduce additional figures or external analysis.