Garmin forecasts upbeat annual results on strong demand for high-end wearables

Feb 18 (Reuters) – Garmin forecast annual revenue and profit above Wall Street estimates on Wednesday driven by strong demand for high-end wearables and fitness products.

Shares of the navigation-device maker rose more than 15% in early trading and the stock was on track for its highest single-day percentage jump since October 2024 if gains hold.

The forecasts show Garmin’s growth in various markets, including wellness devices, marine systems and private aviation, despite uneven consumer demand.

The company’s mix of sales channels and its own manufacturing facilities have helped it adjust to shifting demand while maintaining profits.

Revenue from the fitness segment rose 42% to about $765.8 million in the fourth quarter, driven by demand for recently launched products including its Venu 4 and Bounce 2 smartwatches.

For 2026, Garmin expects total revenue of $7.9 billion, above analysts’ expectation of $7.63 billion, according to data compiled by LSEG.

On an adjusted basis, it expects to report full-year earnings of $9.35 per share, ahead of an expectation of $8.70 per share.

The company, known for its fitness watches and navigation systems, said its total revenue rose 17% to $2.12 billion in the fourth quarter, topping analysts’ average estimate of $2.02 billion.

Garmin’s distribution strategy combines a global network of independent retailers, dealers, distributors, installers and original equipment makers. Direct sales take place through its online stores, subscription services and company-owned retail outlets.

Adjusted profit in the reported quarter came in at $2.79 per share, also ahead of an estimate of $2.40 per share.

(Reporting by Arnav Mishra in Bengaluru; Editing by Pooja Desai)