What Sent Garmin Stock Lower?

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Garmin (GRMN) stock fell 5.8% on Wednesday, October 28, 2026, while the S&P 500 rose 0.3%. The decline occurred on the same day Garmin reported what it called record third-quarter operating results and raised its full-year guidance. So why did the shares drop on a record quarter?

Garmin Raised Its Forecast But Warned On Memory Costs

Garmin reported adjusted earnings per share of $2.76 for the quarter, against the $2.41 analysts expected. Revenue reached $1,986 million, landing just below the $1,989 million estimate. Management raised its full-year 2026 revenue forecast to $8.15 billion, from $8.05 billion, and said fitness revenue rose 16% on broad-based wearable growth.

Management also said Garmin’s results will soon reflect the higher cost of memory and other raw materials. These costs have risen sharply since last year on high demand and limited supply. Garmin saw a small effect from memory costs in the third quarter and expects more of it in the fourth. Looking further out, management said it is too early for a full 2027 outlook, but it expects the gross margin to fall back to a historical range, mainly because of higher memory costs.

For now, the margin is still rising. Garmin posted a 63.3% gross margin in the third quarter, up from 59.1% a year earlier. For 2026 as a whole, the company raised its gross margin forecast to about 61%. Management said the new forecast is 130 basis points above its previous forecast. A news report linked the fall in the stock to soaring memory chip prices that will soon weigh on margins.

Garmin Fell Much Further Than Similar Stocks

Garmin’s sector and peers moved far less during the same session. XLY, the SPDR fund for its Consumer Discretionary sector, slipped 0.1%. Among the companies on Garmin’s Trefis peer list, Apple fell 0.9% and Alphabet rose 1.3%. None of the others moved as much as either of them, so the drop was Garmin’s own.

Where Garmin Stock Stands After The Drop

A fall this large is rare for Garmin. The shares had dropped this much in one session just once in the prior 365 days. The last move at least this large in either direction was a 16.2% gain on July 29, 2026.

Over the past 12 months, the stock returned 10.2%, against 14.0% for the S&P 500. It closed at a 52-week high of $313.16 on August 10, 2026, and has fallen since. From July 30 to October 28, 2026, the shares fell 8.1%, while the S&P 500 returned 4.4%. They closed at $272.51 on October 28, still well above their 52-week closing low of $187.10, set on November 20, 2025.

Garmin will issue its fourth-quarter 2026 report next, and its gross margin is the measure to watch. Management expects more of the memory cost increase to show up there.

How To Act On GRMN?

Now you know Garmin better. Our purpose is to inform you so you can decide for yourself, and acting on one stock, in either direction, carries its own risk.

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