Navigation device maker Garmin has projected upbeat annual results, forecasting revenue and profit to surpass Wall Street estimates. This optimistic outlook is primarily fueled by robust demand for high-end wearables and fitness products. The company's strategic mix of sales channels and in-house manufacturing capabilities have enabled it to navigate shifting consumer demand effectively while sustaining profitability.
Garmin's fitness segment experienced a significant surge, with revenue increasing 42% to approximately $765.8 million in the fourth quarter. This growth was largely attributed to strong sales of recently launched smartwatches, including the Venu 4 and Bounce 2 models. For the full year 2026, Garmin anticipates total revenue to reach $7.9 billion, exceeding analysts' consensus of $7.63 billion. On an adjusted basis, the company expects full-year earnings per share of $9.35, also ahead of the projected $8.70.
Overall, Garmin reported a 17% rise in total revenue to $2.12 billion for the fourth quarter, surpassing the average analyst estimate of $2.02 billion. The company's distribution strategy encompasses a broad network of independent retailers, dealers, distributors, installers, and original equipment manufacturers, complemented by direct sales through its online platforms, subscription services, and company-owned retail locations. Adjusted profit for the reported quarter stood at $2.79 per share, also outperforming the estimated $2.40 per share.