Garmin (NYSE:GRMN) shares rose 6.29% on Thursday after the company released first-quarter results that surpassed analyst forecasts on both top-line and adjusted profit metrics.
For the quarter ended March 28, Garmin reported revenue of $1.75 billion, representing a 14% increase from the prior year and outpacing the analyst consensus of $1.72 billion. Adjusted earnings per share were $2.08, above the $1.82 per share estimate and up 29% from the comparable period a year earlier.
Margins also strengthened during the quarter. Operating margins expanded to 24.6%, an improvement of 293 basis points year-over-year, reflecting what the company framed as better operational efficiency across its businesses.
Despite the quarterly upside, Garmin left its full-year guidance unchanged. The company reiterated its fiscal 2026 revenue outlook of $7.9 billion, a projection that sits below the analyst consensus figure of $7.97 billion. Full-year adjusted earnings per share guidance was maintained at $9.35, which aligns with Wall Street estimates.
Bank of America analysts described the quarter as favorable, saying "the results were strong," but they retained an Underperform rating on the shares. "We continue to see GRMN as fully priced," the analysts commented, signaling that valuation concerns tempered their view despite the sequential and year-over-year improvement in results.
The quarterly performance showed broad-based strength across Garmin's segments, with double-digit revenue growth cited in the results. Management highlighted margin expansion as evidence of improved operational execution during the period.
The juxtaposition of an earnings beat and an unchanged full-year outlook leaves investors weighing near-term execution against guidance that trails consensus expectations on revenue. Market reaction on the day of the release reflected the positive surprise on results, even as some analysts cautioned that multiples and valuation remain important considerations for longer-term returns.
Summary: Garmin exceeded first-quarter revenue and adjusted EPS expectations and widened operating margins, driving a 6.29% rise in the stock. The company held its fiscal 2026 revenue and EPS guidance steady, which remains slightly below analyst revenue consensus.