Garmin filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $7.9 billion, a 13.6% rise on the year before. That growth rate was up 0.1 percentage points from the quarter earlier.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
View chart data
| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 20.4% | 25.3% | 19.7% |
| FY25 Q1 | 18.1% | 25.2% | 18.9% |
| FY25 Q2 | 19.6% | 26.0% | 16.7% |
| FY25 Q3 | 16.6% | 25.6% | 19.2% |
| FY25 Q4 | 15.1% | 25.9% | 18.8% |
| FY26 Q1 | 15.7% | 26.5% | 19.4% |
| FY26 Q2 | 13.5% | 27.6% | 20.9% |
| FY26 Q3 | 13.6% | 28.8% | 18.6% |
What stands out
Net income rose 28.4% over the year while free cash flow increased by 10.2%, indicating that reported profit and cash are moving at different speeds. Capital spending grew 81.5%, outpacing operating cash flow’s 20.7% increase, which means less of the generated cash was retained.
Profitability
Wider margins accompany this growth, causing profit to rise faster than sales. The trailing gross margin stood at 61.1%. The trailing operating margin reached 28.8%, up 3.2 percentage points from a year earlier. Alongside that, the trailing net margin was 25.6%. Net income over the twelve months totaled $2.0 billion, representing a 28.4% increase on the prior year.
Where the cash went
Spending is outpacing the cash the business generates, leaving less surplus. Operating cash flow over the twelve months was $1.9 billion, up 20.7% on the year before. Capital spending amounted to $419.2 million, or 5.3% of revenue. Free cash flow, defined as operating cash flow minus capital spending, stood at $1.5 billion, a 10.2% rise on the prior year. This represented an 18.6% free-cash-flow margin, down 0.6 percentage points from a year earlier.
The share base
The average diluted share count fell 0.1% over the year.
In context
Measured against its own history, today’s free-cash-flow margin of 18.6% is higher than 33% of the company’s past quarterly readings, which have ranged from 5.7% to 39.3%. Today’s operating margin of 28.8% exceeds every previous reading (18.9% to 27.6%). The current twelve-month revenue growth rate of 13.6% is higher than 80% of past readings (−10.0% to 29.2%).
Guidance
The company raised its full year 2026 guidance for revenue to $8.05 billion, for pro forma EPS (adjusted) to $10.00, for gross margin to 59.7%, and for operating margin to 27%.
The valuation angle
Our model translates these figures into value. In our model, growth 5 percentage points lower would reduce the value by 23.2%, while 5 percentage points higher would increase it by 29.9%. A free-cash-flow margin 1 percentage point lower would decrease the value by 5.1%.
Next to watch
The next filing will show whether the trends above continue, slow or reverse.
