Garmin stock rallies nearly 30 percent after November low
Garmin shares jumped almost 10 percent today after the company posted its latest earnings, lifting the stock to around $238. That puts it roughly 27.2 percent above the November 20 low of $187.10.
The rally comes on the back of a strong fourth quarter and full year 2025 performance. Garmin reported record revenue, improving margins, and guidance that points to further growth heading into 2026.
Earnings drive the surge
The catalyst for the big move today was Garmin’s earnings announcement. The company reported fourth quarter revenue of $2.12 billion, reflecting a 17 percent year-over-year increase, along with operating income of $614 million, up 19 percent. For the full year, Garmin achieved a record revenue of $7.25 billion, with operating income reaching $1.88 billion.
These figures indicate robust growth, showing that Garmin not only increased sales but also maintained strong profit margins. Gross margins remained close to 59 percent, while operating margins expanded to nearly 29 percent.
The fitness segment was a standout performer, with revenue skyrocketing 42 percent during the quarter due to high demand for wearables and gains in market share. This reinforces Garmin’s fitness division as a key growth engine amid increasing competition in the smartwatch arena.
Additionally, Garmin made several announcements favourable to shareholders. The company proposed a 17 percent increase in dividends and introduced a $500 million share repurchase program. Alongside solid free cash flow and a strong cash position, these announcements communicated a strong sense of confidence in Garmin’s future outlook.
A notable rebound since November
The one day jump grabs attention, but it makes more sense when you zoom out. Garmin shares bottomed out at $187.10 on November 20 and have since climbed to around $238. That works out to a solid 27.2 percent rebound in just a few months.
Even so, the stock is still below where it traded in late September, when prices sat closer to the $250 to $260 range. That earlier pullback came despite Garmin posting record third quarter revenue and sounding positive overall.
The issue was guidance, not results. Management warned that growth in the outdoor segment was slowing, largely because the Fenix 8 Pro arrived too late in the third quarter to really support sales. Outdoor revenue ended up falling 5 percent year over year, forcing Garmin to cut full year growth guidance for that segment to just 3 percent. That mismatch between strong headline numbers and weaker forward looking signals is what triggered the October selloff.
How the earnings report shifts the narrative
This earnings report changes the tone around Garmin. The company wrapped up 2025 with record revenue across all five segments and shipped more than 20 million devices, which says a lot about how well the business is actually running. Looking ahead, Garmin expects revenue of around $7.9 billion in 2026 with higher earnings, so this does not look like a company running out of steam.
That said, the stock still has not made it back to its September highs. That tells you investors are not all in yet. After such a strong rebound, valuation matters more, and people are being more careful about what they are willing to pay.
Still, the message from the market is pretty clear. When Garmin delivers clean numbers and lays out a confident outlook, the stock reacts fast. The past few months show just how quickly sentiment can swing, both when expectations drop and when confidence comes back.
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