Garmin Ltd. (GRMN) AI Stock Analysis

Established in 1989 and headquartered in Schaffhausen, Switzerland, Garmin Ltd. designs, develops, manufactures, and distributes wireless devices worldwide. The company operates across five core segments: Fitness, Outdoor, Aviation, Marine, and Auto. Its Fitness line offers running and multi-sport watches, cycling accessories, and activity trackers linked to platforms like Garmin Connect and Connect IQ. The Outdoor segment delivers adventure watches, handhelds, golf gear, and dog tracking devices. Aviation manufactures avionics solutions including integrated flight decks, navigation tools, and flight safety systems. Marine produces chartplotters, sonar, radar, and VHF radios, while Auto supplies embedded computing, infotainment, and personal navigation devices.

Garmin grew revenue at a 5-year CAGR of 11.6% from FY2020 through FY2025. After revenue fell 2.5% in FY2022 to $4.86B, growth accelerated to 7.6% in FY2023 at $5.23B, 20.4% in FY2024 at $6.30B, and 15.1% in FY2025 at $7.25B. Gross margin expanded from 57.5% in FY2023 to 58.7% in FY2025, while operating margin rose to 25.9%. Annual net income expanded to $1.66B with diluted EPS of $8.56 in FY2025. Over the trailing twelve months ended June 30, 2026, revenue stood at $7.67B with an operating margin of 30.4%. In the latest quarter, revenue grew 11.4% and earnings increased 35.3% year-over-year.

As of June 30, 2026, Garmin held $2.67B in cash and short-term investments against $178.0M in total debt, yielding net cash of $2.49B. Shareholders' equity was $9.03B, supported by a current ratio of 3.03 and a debt-to-equity ratio of 0.02. In FY2025, Garmin generated $1.63B in operating cash flow and $1.36B in free cash flow. Capital deployment in FY2025 included $270.4M in capital expenditures, $238.2M in share buybacks, and $663.9M in dividends paid.

Garmin trades at a trailing P/E of 29.4x, below the 31.5x median of its S&P 500 Technology peers, but its forward P/E of 24.8x stands above the peer median of 20.3x. Its price-to-sales multiple is 7.2x versus the peer median of 6.2x, while its EV-to-EBITDA ratio of 22.7x compares to a peer median of 19.5x. The company has a PEG ratio of 3.03. Over the past year, Garmin's stock return of 17.3% outpaced the S&P 500 return of 16.8%, and its 5-year return of 103.1% exceeded the index return of 83.0%.

Garmin has paid dividends for 24 consecutive years. It distributes a quarterly dividend with a forward annual rate of $4.20 per share, delivering a dividend yield of 1.47%. The company carries a payout ratio of 40.3% and has achieved a 5-year annualized dividend growth rate of 7.5%. Its last ex-dividend date is March 12, 2027.

Wall Street coverage includes 3 Strong Buy, 4 Hold, and 1 Sell ratings across 8 analysts. The mean price target is $306.71, representing 7.7% upside from the last close of $284.79. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $8.10B and EPS of $10.13, implying 18.3% EPS growth. Garmin exceeded EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 28, 2026.

This page is an AI-written research summary of Garmin Ltd. (GRMN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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