Here's Why Garmin Stock Soared in February

Core Insights - Garmin's business is experiencing significant growth, with a 25.4% stock increase in February following a strong fourth-quarter financial update and optimistic 2026 guidance [1][2] Financial Performance - Garmin's fitness segment has become the largest, achieving 42% year-over-year growth in Q4 and averaging 32% growth each quarter over the past two years [4] - The company reported record revenue across all five segments last year, with aviation and marine also showing double-digit growth in Q4. Overall revenue surged 15%, nearly double the initial 8% growth forecast [5] - Management is predicting a 9% revenue growth for the upcoming year, despite tough comparisons from a standout 2025 [2][6] Shareholder Returns - Garmin plans to increase its quarterly dividend from $0.90 to $1.05 per share, representing a 17% increase [7] - The company initiated a new $500 million share repurchase plan, replacing a previous plan with only $56 million remaining [7] - Garmin generated $1.36 billion in free cash flow in 2025 and ended the year with approximately $4.1 billion in cash and marketable securities, with no debt on the balance sheet [8]