Garmin's stock soared 17.06% during pre-market trading on Wednesday, following the release of its fourth-quarter financial results and forward-looking guidance that significantly exceeded analyst expectations.

The navigation and wearable technology company reported pro forma earnings per share of $2.79 for the fiscal fourth quarter, surpassing the FactSet consensus estimate of $2.40. Quarterly revenue rose 17% year-over-year to $2.12 billion, also beating the expected $2.02 billion. The strong performance was notably driven by a 42% surge in revenue from its Fitness segment, fueled by robust demand for high-end wearables like the Venu 4 and Bounce 2 smartwatches.

Furthermore, Garmin issued an optimistic outlook for 2026, forecasting pro forma earnings per share of $9.35 on revenue of approximately $7.9 billion, both above analyst estimates. The company also announced a proposed 17% increase in its annual dividend to $4.20 per share and authorized a new $500 million share repurchase program, enhancing shareholder returns and contributing to the positive investor sentiment.