Here's Why Garmin Stock Soared in February

By Howard Smith – Mar 7, 2026 at 9:36AM ESTKey PointsGarmin's fitness products grew sales by 42% in Q4. Investors were pleased to hear a 17% dividend increase is coming. Garmin management has historically been conservative with guidance. GPS-enabled device maker Garmin (GRMN +1.38%) 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. Image source: The Motley Fool. Fitness rules 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. Shareholder friendly 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. ExpandNYSE: GRMNGarminToday's Change(1.38%) $3.31Current Price$243.48Key Data PointsMarket Cap$47BDay's Range$233.64 - $243.9652wk Range$169.26 - $261.69Volume1MAvg Vol1MGross Margin58.74%Dividend Yield1.42% 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. Read NextFeb 18, 2026 •By Howard SmithWhy Did Garmin Stock Soar Today?Feb 13, 2026 •By Micah ZimmermanShould You Buy Garmin Stock Before Feb. 18?Nov 10, 2025 •By Howard SmithGarmin Stock Sank 13% Last Month. Here's Why It's a Great Time to BuyOct 29, 2025 •By Howard SmithWhy Did Garmin Stock Tank Today?Sep 9, 2025 •By Demitri KalogeropoulosMy 2 Favorite Stocks to Buy Right NowJul 30, 2025 •By Howard SmithWhy Garmin Stock Sank After Earnings TodayAbout the AuthorHoward Smith is a contributing Motley Fool stock market analyst covering technology and industrial stocks. Prior to The Motley Fool, Howard spent nearly 30 years supervising quality and operations in the steel industry, mostly with leading steel company Nucor. He holds a bachelor’s degree in metallurgical engineering from Lafayette College and a master’s degree in environmental engineering from Johns Hopkins University.TMFBuilt2LastStocks MentionedGarminNYSE: GRMN$243.64(+1.45%)+$3.47*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.