GPS-enabled gadget maker Garmin (NYSE: GRMN) let traders know that enterprise is booming. Its fourth-quarter monetary replace and 2026 steering helped the inventory soar 25.4% in February, in keeping with information supplied by S&P International Market Intelligence.
Even after a standout 2025 that can result in powerful comparisons this 12 months, administration continues to be predicting 9% progress. Buyers can take a look at a historical past of conservative forecasts and conclude that double-digit progress is probably going once more this 12 months, making Garmin inventory a stable purchase.
Will AI create the world’s first trillionaire? Our crew simply launched a report on the one little-known firm, known as an “Indispensable Monopoly” offering the vital expertise Nvidia and Intel each want. Proceed »
Garmin’s health section has grown to turn out to be its largest. After notching 42% year-over-year progress in This fall, the class has averaged 32% progress every quarter over the previous two years. Garmin’s health merchandise embody extra than simply smartwatches and different units for operating, biking, golf, and different sports activities. It affords novel options in digital well being and health. The corporate has enhanced its premium Join+ providing with AI-powered diet monitoring and insights to assist customers obtain diet and health objectives.
Health is not the one space the place Garmin is flourishing. The corporate achieved report income throughout all 5 segments final 12 months, with aviation and marine additionally posting double-digit progress within the fourth quarter. For the total 12 months, Garmin’s income surged 15%, practically double the 8% progress administration initially predicted.
That is extra of a sample than an anomaly. The 2024 income progress of 20% adopted the corporate’s preliminary estimate of 10% progress over 2023. Buyers ought to issue administration’s traditionally conservative steering into their resolution on whether or not the inventory is an efficient worth. That helps clarify why the inventory jumped final month.
Steering for 9% income progress and barely larger earnings per share (EPS) progress offers administration confidence to spice up returns to shareholders, too. It proposed to extend its quarterly dividend from $0.90 to $1.05 per share. That is a 17% enhance.
The corporate itself thinks its inventory continues to be a great purchase, too. Garmin initiated a brand new $500 million share repurchase plan. That replaces the prior $300 million plan, which had solely $56 million remaining.
There is no scarcity of money to perform each shareholder-friendly strikes. Garmin generated $1.36 billion in free money circulate in 2025 and ended the 12 months with about $4.1 billion in money and marketable securities. With no debt on the stability sheet, traders ought to contemplate that monetary power when learning valuation.