Garrett Motion (NASDAQ:GTX) Beats Expectations in Strong Q2 CY2026

Turbocharger technology company Garrett Motion (NYSE:GTX) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 6.9% year on year to $976 million. The company’s full-year revenue guidance of $3.8 billion at the midpoint came in 0.5% above analysts’ estimates. Its GAAP profit of $0.53 per share was 14.8% above analysts’ consensus estimates.

Is now the time to buy Garrett Motion? Find out by accessing our full research report, it’s free.

“Garrett delivered a strong second quarter, highlighting the power of our differentiated technology portfolio and continued share-of-demand gains,” said Olivier Rabiller, President and CEO of Garrett.

Company Overview

A key player in the transition to cleaner vehicles, Garrett Motion (NYSE:GTX) designs and manufactures turbochargers, air compressors, and electric motor technologies for vehicle manufacturers and industrial applications.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Garrett Motion struggled to consistently increase demand as its $3.75 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and is a poor baseline for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Just like its five-year trend, Garrett Motion’s revenue over the last two years was flat, suggesting it is in a slump.

This quarter, Garrett Motion reported year-on-year revenue growth of 6.9%, and its $976 million of revenue exceeded Wall Street’s estimates by 3.3%.

Looking ahead, sell-side analysts expect revenue to grow 2.7% over the next 12 months. Although this projection implies its newer products and services will catalyze better top-line performance, it is still below the sector average.

ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.

AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

Operating Margin

Garrett Motion has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 13.2%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it’s a show of well-managed operations if they’re high when gross margins are low.

Analyzing the trend in its profitability, Garrett Motion’s operating margin rose by 1.4 percentage points over the last five years, showing its efficiency has improved.

In Q2, Garrett Motion generated an operating margin profit margin of 15.5%, up 2.2 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Garrett Motion’s EPS grew at 36.1% compounded annual growth rate over the last five years, higher than its flat revenue. This tells us management responded to softer demand by adapting its cost structure.

Diving into the nuances of Garrett Motion’s earnings can give us a better understanding of its performance. As we mentioned earlier, Garrett Motion’s operating margin expanded by 1.4 percentage points over the last five years. On top of that, its share count shrank by 66.4%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Garrett Motion, its two-year annual EPS growth of 34.2% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.

In Q2, Garrett Motion reported EPS of $0.53, up from $0.42 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Garrett Motion’s full-year EPS to grow 3.5% from $1.82 to $1.88.

Key Takeaways from Garrett Motion’s Q2 Results

We enjoyed seeing Garrett Motion beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock remained flat at $30.06 immediately after reporting.

Indeed, Garrett Motion had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).