On February 19, Morgan Stanley upgraded Garmin to Equal Weight from Underweight and increased its price target by 29% to $252 from $195. The firm cited stronger-than-expected 2026 revenue and margin guidance—viewed as conservative—as the primary catalyst for the upgrade.

Garmin reported full-year 2025 consolidated revenue of $7.246 billion, up 15% year over year, and fourth-quarter revenue of $2.125 billion, up 17%, marking its first quarter above $2 billion. Pro forma EPS for the year was $8.56, a 16% increase, while Q4 EPS rose 16% to $2.79. The company ended 2025 with approximately $4.1 billion in cash and marketable securities and generated about $1.4 billion in free cash flow.

Garmin proposed a $4.20 annual dividend, representing a 17% increase, and secured board approval for a $500 million share repurchase program. These actions reflect the company’s focus on returning capital to shareholders following record sales and cash flow generation.

Management guided 2026 consolidated revenue to roughly $7.9 billion, gross margin near 58.5%, operating margin around 25.5%, and operating income above $2.0 billion for the first time. Pro forma EPS is projected at about $9.35, with anticipated memory cost pressures and tariffs offset by favorable product mix and supply chain initiatives.