Garmin Boosts 2026 Dividend by 17% and Unveils $500M Buyback
Garmin proposed a 17% year-over-year dividend increase for fiscal 2026 and authorized a $500 million share repurchase program representing over 1% of its market capitalization. The company reported fourth-quarter revenue of $2.1 billion, up 17% year-over-year, delivered $2.79 adjusted EPS, up 16%, and guided 2026 revenue to grow nearly 10%.
1. Capital Returns
Garmin proposed a 17% year-over-year dividend increase for fiscal 2026 and authorized a $500 million share repurchase program, equal to over 1% of its market capitalization. The dividend yield stands at 1.6% and the payout ratio remains below 45% of consensus earnings, ensuring sustainable capital returns.
2. Q4 Performance
In the fourth quarter Garmin reported revenue of $2.1 billion, up 17% year-over-year, with adjusted earnings per share of $2.79, a 16% increase. Operational improvements of 60 basis points offset a 10 basis-point gross margin contraction, and free cash flow reached $430 million, supporting a 50% payout ratio.
3. Fiscal 2026 Outlook
For fiscal 2026 Garmin guided revenue growth of nearly 10% and expects earnings to remain strong enough to sustain its capital return program. The company anticipates stronger contributions from Fitness, Aviation and Marine segments while Outdoor and Automotive OEM are projected to rebound.
4. Market Reaction
Shares surged over 10% following the results, topping record highs and confirming support at key moving averages. Garmin trades at 27 times current-year forecasts, with institutional ownership above 80%, indicating robust market backing and limited downside risk.