Shares of Garmin rose sharply Wednesday after the GPS maker breezed past earnings expectations in the second quarter and raised its full-year guidance.
Garmin reported adjusted earnings of $2.81 a share for the quarter, up from $2.17 a year ago and well above the $2.30 analysts had expected. Revenue rose 11% to $2.02 billion, surpassing Wall Street's call for $1.93 billion.
The stock jumped 19% to $301.34, putting Garmin on track for a record closing high and its largest single-day gain since 2024, according to Dow Jones Market Data.
Garmin forecast earnings of $10 a share for 2026, up from a previous estimate of $9.35. The company also raised its projection for 2026 revenue to $8.05 billion from $7.9 billion.
Much like BlackBerry or GoPro, the Garmin name evokes nostalgia of 2000s electronic gadgets. Unlike many of those gadget makers, Garmin has warded off much richer competitors in the consumer electronics space to develop a range of still-relevant products.
Investors have paid attention: Garmin was on track Wednesday to close with a market capitalization of about $58 billion, breaching the $50 billion mark for the first time.
The company's fitness segment, which includes smartwatches and other wearables, is its largest slice of business. Fitness revenue climbed 25% in the second quarter. Earlier this year, Barron's highlighted Garmin as a potential beneficiary of consumers' growing focus on longevity.
Auto navigation, Garmin's claim to fame before smartphones arrived, is now a small part of the business. Instead, its boating, aviation, and outdoor recreation segments each contributed at least $250 million in quarterly revenue.
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