Abstract

Garmin Ltd. will report its quarterly results on February 18, 2026, Pre-Market; aggregated forecasts point to revenue of 2.02 billion, EPS of 2.40, and EBIT of 530.78 million, with year-over-year growth across all three metrics.

Market Forecast

Consensus models for the current quarter indicate Garmin Ltd. is on track for revenue of 2.02 billion, EPS of 2.40, and EBIT of 530.78 million, corresponding to year-over-year growth of 18.82%, 18.16%, and 22.29%, respectively. While margin guidance for the quarter isn’t explicitly provided, recent performance shows robust profitability and supports the view that earnings quality will remain solid.

The main business remains Fitness, which posted 601.01 million last quarter and is expected to benefit from continued demand for advanced wearables and training devices as the product refresh cycle remains constructive. The most promising growth segment is Automotive/OEM, which delivered 164.84 million last quarter; with total revenue expected to rise 18.82% year-over-year, the expanding vehicle electronics pipeline suggests this segment can outpace the company’s average in the periods ahead.

Last Quarter Review

Garmin Ltd. reported revenue of 1.77 billion, a gross profit margin of 59.09%, GAAP net profit attributable to shareholders of 402.00 million, a net profit margin of 22.68%, and adjusted EPS of 1.99; revenue grew 11.66% year-over-year, while adjusted EPS registered 0% year-over-year change.

A notable highlight is profitability momentum: net profit increased quarter-on-quarter by 20%, underscoring a favorable mix and operating leverage into the holiday period. In the main business, Fitness generated 601.01 million and represented 33.94% of company sales, set against total company revenue growth of 11.66% year-over-year.

Current Quarter Outlook

Fitness

Fitness is positioned to shape the quarter’s narrative because it remains the largest revenue contributor at 601.01 million last quarter. Mixed training devices, multi-band GPS, and advanced sensor suites have sustained adoption among performance-oriented users, and buying patterns remain stable given durability and software-backed feature upgrades. A broader shift toward integrated software ecosystems—training plans, coaching, analytics, and social features—supports attach rates while helping the company maintain pricing discipline. The most recent quarter’s gross margin of 59.09% indicates strong contribution from high-value devices and bundles; with consensus calling for 18.82% revenue growth this quarter overall, Fitness should continue to provide sturdy margin support. New colorways and targeted bundles around popular models can optimize channel rotation while the installed base expands, amplifying repeat purchases for accessories and services.

Operationally, the segment’s supply chain has exhibited resilience, enabling smoother fulfillment across commerce channels during peak demand windows. Wearables with improved battery life, enhanced health metrics, and simplified UX tend to broaden the addressable audience and reduce return rates, which supports efficient working capital and margin retention. Looking ahead, software enhancements designed to elevate daily training performance can stimulate incremental demand and shorten upgrade cycles, which in turn raises per-user monetization prospects. With EPS and EBIT expected to grow 18.16% and 22.29% year-over-year this quarter, the financial model suggests sustained operating leverage in Fitness as the company converts top-line momentum to profitability.

Automotive/OEM

Automotive/OEM shows potential to be a key growth vector as embedded compute, sensor fusion, and cabin experiences increasingly consolidate across vehicle domains. Garmin Ltd. recently unveiled the Nexus High-Performance Compute platform powered by advanced automotive silicon, aimed at unifying infotainment, instrument clusters, and driver assistance functions. This consolidation into a single system complements the company’s Unified Cabin solutions and helps original equipment manufacturers streamline hardware, reduce complexity, and accelerate development schedules. The launch of an OEM proof-of-concept integrating gesture-based EMG control from Meta’s Neural Band signals the company’s ambition to expand human-machine interface options in vehicles, creating differentiated experiences in infotainment control and enhancing accessibility.

Revenue in Automotive/Mobile was 164.84 million last quarter, a foundation that benefits from new design wins and the relationships cultivated with technology partners and automakers. The broadening roadmap suggests rising content per vehicle, and as programs transition from proof-of-concept into production, recognized revenue can scale. Visibility around ramp timing typically hinges on OEM validation cycles and software acceptance gates; nonetheless, the activity indicates a healthy pipeline and suggests momentum into calendar-year builds and subsequent quarters. On balance, consensus revenue growth of 18.82% year-over-year for the current quarter implies that Automotive/OEM’s contributions could expand faster than corporate averages as the platform approach gains traction, especially where unified compute frameworks unlock cost and integration benefits for OEMs.

Primary Stock Price Drivers This Quarter

Margin durability is central to investor reactions this quarter. Last quarter’s gross margin of 59.09% and net profit margin of 22.68% set a strong baseline, and the forecast for EBIT growth of 22.29% year-over-year suggests solid operating efficiency against product mix effects. As Fitness and Outdoor maintain scale, their higher-value hardware profiles support overall margin outcomes, while cost discipline and software enhancement help mitigate typical pressures in promotional seasons. A stable pricing strategy favors margin retention, and accessory/services attachments provide blend uplift even as hardware cycles mature.

Earnings-per-share growth of 18.16% year-over-year is a meaningful anchor for sentiment as it reflects the combined effects of revenue acceleration, cost management, and product mix. The quarter could also see tight execution around inventory levels and channel health, which matters for free cash flow conversion and working capital dynamics. Seasonality effects tend to be most visible in sell-through metrics; durable sell-through mitigates discounting, preserving profitability. With revenue projected to be 2.02 billion and EBIT 530.78 million, the model points toward expanded operating leverage, and if the product mix maintains its tilt to higher-margin lines, headline EPS should align with consensus.

Product cycle cadence will also shape investor response. In Fitness, new SKUs and incremental refinements tend to lift upsell potential and accelerate refresh behavior among existing users; in Automotive/OEM, validation milestones and co-development updates with technology partners often catalyze sentiment when they translate into visible program ramp signals. Aviation platform investment—highlighted by capacity additions tied to certification and flight testing—can fortify longer-term prospects, but near-term stock reaction will hinge primarily on whether the company converts consensus expectations on revenue, EPS, and EBIT into delivery at or above guidance. The broader read-through is that strong sequential execution, alongside year-over-year acceleration, provides the backdrop for constructive interpretations of the quarter.

Analyst Opinions

Bullish views currently dominate recent commentary, converging on an expectation that Garmin Ltd. will surpass last year’s comparable quarter on revenue and earnings while sustaining attractive margins. The prevailing position emphasizes a constructive skew to the short-term outlook driven by three pillars: robust demand for advanced Fitness devices, a strengthening embed footprint in Automotive/OEM through unified compute and human-machine interface innovation, and capacity expansion in Aviation that supports certification and program throughput. In aggregate, these points support the consensus modeled for 2.02 billion in revenue, 530.78 million in EBIT, and EPS of 2.40—interpreted by market participants as a credible setup for year-over-year growth of 18.82%, 22.29%, and 18.16%, respectively.

Bullish analysts expect margin resilience to remain a defining characteristic of the quarter, citing the company’s history of disciplined pricing, mix optimization toward higher-value devices, and attach rates in accessories and services that maintain blended profitability. They point to the quarter-on-quarter net profit increase of 20% in the recent print as evidence that execution on product mix and cost control is translating into operating leverage. Importantly, they frame the wearables refresh cycle as intact, with features in training metrics, sensor fidelity, and endurance pushing multi-device ownership and upgrade incentives for performance-oriented consumers. On the vehicle side, the partnership ecosystem underscores momentum in embedded computing, with the platform approach promising content growth and durability as programs advance.

The majority stance also highlights that earnings quality remains a defining factor, given elevated gross margins last quarter and expectations for continued conversion of top-line growth into EPS. With Automotive/OEM initiatives expanding and Aviation infrastructure scaled for test and certification throughput, bullish coverage anticipates a supportive narrative around long-term product roadmaps, but they anchor their near-term view in the company’s ability to meet or slightly exceed the quarter’s revenue and earnings forecasts. The message that emerges is measured confidence in this quarter’s setup: a constructive mix, healthy demand indicators, and expanding platform engagements form the backbone of expectations for a solid print, and the consensus patterns reflect this tilt toward positive outcomes.