Garmin 10-Q Details Record Q3: $1.99B Revenue, $612M Operating Income, Margin Up 420 bps
GRMN sits 47% above its 52-week low of $186.67.
Summary
Garmin's Q3 10-Q confirms record $1.99B revenue (+12%) and $612M operating income (+34%), with gross margin up 420 bps partly on ~$33M of tariff refunds. Management flags memory-chip supply constraints as a headwind to future gross margin.
Key Events · Earnings and Guidance · GRMN
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Record Q3 Revenue and Profit
Net sales of $1,986.1M rose 12% year over year and operating income of $611.6M rose 34%, lifting operating margin to 31% from 26%.
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Margin Boosted by Tariff Refunds
Gross margin rose 420 bps to 63%, including a favorable ~160 bps from about $33M of refunded IEEPA tariffs; ~$54M was recognized year-to-date.
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Memory Supply Constraint Warning
Management said recent global supply constraints of memory chips have raised costs and are expected to unfavorably impact future gross margin.
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Inventory Build and Cash Flow
Inventories grew to $2,251.7M from $1,772.3M at December 27, 2025, while nine-month operating cash flow rose to $1,333.4M from $1,079.6M.
Analysis · GRMN · Manufacturing
The headline numbers were already out this morning via 8-K and newswires, but the 10-Q fills in what drove them and what comes next. Gross margin jumped 420 basis points to 63%, helped by roughly $33 million of refunded IEEPA tariffs — a one-time tailwind, not a run-rate improvement. Against that, management explicitly warns that memory-chip supply constraints will pressure future gross margin, and inventory has climbed to $2.25 billion from $1.77 billion at year-end, tying up cash ahead of that constrained supply. Nine-month operating cash flow of $1.33 billion still comfortably funds the $4.20 annual dividend and the buyback, which has $407.3 million left under the 2026 program.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.7% of the 1698 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, GRMN was trading at $273.64 on NYSE in the Manufacturing sector, with a market capitalization of approximately $52.8B. The 52-week trading range was $186.67 to $314.28. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.