Here’s Why Garmin Stock Soared in February

GPS-enabled device maker Garmin (NYSE: GRMN) let investors know that business is booming. Its fourth-quarter financial update and 2026 guidance helped the stock soar 25.4% in February, according to data provided by S&P Global Market Intelligence.

Even after a standout 2025 that will lead to tough comparisons this year, management is still predicting 9% growth. Investors can look at a history of conservative forecasts and conclude that double-digit growth is likely again this year, making Garmin stock a solid buy.

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

Garmin’s fitness segment has grown to become its largest. After notching 42% year-over-year growth in Q4, the category has averaged 32% growth each quarter over the past two years. Garmin’s fitness products include more than just smartwatches and other devices for running, cycling, golf, and other sports. It offers novel features in digital health and fitness. The company has enhanced its premium Connect+ offering with AI-powered nutrition tracking and insights to help users achieve nutrition and fitness goals.

Fitness isn’t the only area where Garmin is thriving. The company achieved record revenue across all five segments last year, with aviation and marine also posting double-digit growth in the fourth quarter. For the full year, Garmin’s revenue surged 15%, nearly double the 8% growth management originally predicted.

That’s more of a pattern than an anomaly. The 2024 revenue growth of 20% followed the company’s initial estimate of 10% growth over 2023. Investors should factor management’s historically conservative guidance into their decision on whether the stock is a good value. That helps explain why the stock jumped last month.

Guidance for 9% revenue growth and slightly higher earnings per share (EPS) growth gives management confidence to boost returns to shareholders, too. It proposed to increase its quarterly dividend from $0.90 to $1.05 per share. That’s a 17% boost.

The company itself thinks its stock is still a good buy, too. Garmin initiated a new $500 million share repurchase plan. That replaces the prior $300 million plan, which had only $56 million remaining.

There’s no shortage of cash to accomplish both shareholder-friendly moves. Garmin generated $1.36 billion in free cash flow in 2025 and ended the year with about $4.1 billion in cash and marketable securities. With no debt on the balance sheet, investors should consider that financial strength when studying valuation.

Its forward price-to-earnings (P/E) ratio of 26 should be adjusted to reflect its cash position and management’s tendency for conservative guidance. That would bring its effective P/E down to about 22, about 10% below its three-year average. That means Garmin shares still look like a good value today, even after the February surge.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $461,216!*

Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,025!*

Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $534,008!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of March 2, 2026

Howard Smith has positions in Garmin. The Motley Fool has positions in and recommends Garmin. The Motley Fool has a disclosure policy.

Here’s Why Garmin Stock Soared in February was originally published by The Motley Fool