Garmin's 2026 Guidance Boosted by Revenue, Margin Outlook, Morgan Stanley Says

MT Newswires Live
02/20

Garmin (GRMN) issued better-than-expected 2026 guidance on stronger sales growth and steadier margins than anticipated, Morgan Stanley said Thursday in a report.

Garmin's "execution shines," and the outlook may prove conservative, Morgan Stanley said, raising its 2026 earnings forecast to $9.50 a share from $8.87, above the company's guidance of $9.35.

The company "appears to have managed inventory strategically ahead of the memory upcycle," helping ease margin pressure, and management signaled a strong H2 product launch period, the report said.

Morgan Stanley projects 2027 earnings of $10.49 a share, above consensus, as margin gains in the outdoor segment counter pressure in the auto division, the report said.

Morgan Stanley upgraded its rating on Garmin stock to equal weight from underweight and raised its price target to $252 from $195.

Price: 237.97, Change: +0.51, Percent Change: +0.21

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