Garmin Raises Full-Year Revenue Guidance Amid Rising Component Costs
Garmin (GRMN) reported its third-quarter 2026 earnings, raising its full-year revenue guidance to $8.15 billion from a previous estimate of $8.05 billion. The company is seeing record operating performance in its fitness and outdoor segments, driven by premium product momentum and expanding hardware margins. However, management warned that surging memory component prices are creating profitability headwinds that will likely pull gross margins back toward historical norms. To mitigate these inflationary pressures, Garmin is leveraging its vertical integration and manufacturing scale to maintain cost flexibility. Additionally, the company's software subscription service, Garmin Connect Plus, is seeing faster growth than hardware categories, signaling a strong shift toward high-margin recurring revenue.
Tickers: $GRMN
Topics: component costs operating margins revenue guidance subscription revenue vertical integration
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