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GTX · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Garrett Motion Inc. Common Stock (GTX) stock moving?
Garrett reported Q3 2026 on Oct 29 with mixed numbers: EPS of $0.51 beat the $0.46 estimate, but sales of $930M missed the $937M estimate. The company narrowed FY2026 sales guidance to $3.75B-$3.85B, whose midpoint of $3.80B sits slightly below the $3.824B consensus, and it announced a $250M share repurchase program for 2027. Deutsche Bank trimmed its price target to $30 from $32 but kept its Buy rating, which implies about 45% upside from the Nov 10 close of $20.68. A Multistack win for oil-free compressors in data center cooling adds a non-automotive growth angle. Price action has been weak since results: the stock closed at $20.91 on Oct 30 after $22.48 the day before, with heavy volume (about 4.8M to 7.0M shares) on the drops, and hit a low of $19.24 on Nov 5. It has since recovered to $20.68 on falling volume (2.4M on Nov 10), so selling pressure appears to be easing, though the rebound is not yet confirmed by a clear rise in volume. A director tied to Oaktree resigned on Oct 28, a minor governance change. Overall the evidence is balanced: solid EPS and a buyback offset a sales miss, a trimmed target and a guidance midpoint below consensus.
News behind the analysis
- Deutsche Bank Adjusts Garrett Motion Price Target to $30 From $32, Maintains Buy RatingDeutsche Bank cut its price target to $30 from $32 and kept its Buy rating on the stock.
- Garrett Motion Q3 2026 Earnings Call TranscriptFull transcript of the third-quarter 2026 earnings call, held October 29.
- Multistack Selects Garrett Motion's Oil-Free Centrifugal Compressor Technology for Data Center CoolingMultistack chose Garrett's oil-free centrifugal compressor technology for next-generation data center cooling platforms in Asia-Pacific.
- Garrett Motion Reports Third Quarter 2026 Financial Results and Announces 2027 Share Repurchase ProgramQ3 2026 results were released along with a new $250 million share repurchase program for 2027.
- Garrett Motion Q3 EPS $0.51 Beats $0.46 Estimate, Sales $930.000M Miss $937.000M EstimateQ3 EPS of $0.51 beat the $0.46 estimate, while sales of $930M missed the $937M estimate.
- Garrett Motion Narrows FY2026 Sales Guidance from $3.700B-$3.900B to $3.750B-$3.850B vs $3.824B EstFY2026 sales guidance was narrowed to $3.75B-$3.85B, with a midpoint of $3.80B, below the $3.824B estimate.
About Garrett Motion Inc. Common Stock
Garrett Motion is a Switzerland-based maker of turbochargers for cars and commercial vehicles, spun off from Honeywell in 2018 and listed on Nasdaq. Its turbos are a market-leading business, and it is now expanding into electric-motor, e-cooling compressor and industrial products, including power-generation equipment for data centers.
How it makes money
Most of its revenue comes from selling turbochargers to carmakers and truck makers for gasoline, diesel and hybrid engines. It also earns money from aftermarket replacement parts and a growing industrial business. Management expects industrial sales of about $230 million in 2026, much of it from power-generation uses. Guidance for 2026 is roughly $3.8 billion in total sales, with an adjusted operating margin of about 15%. The company pays a quarterly dividend and buys back shares.
What usually moves GTX
- Global car and truck production volumes
- How fast the world shifts to fully electric cars versus hybrids
- Demand for power-generation equipment from data centers and industry
- Currency swings (mostly the euro) and tariffs
- Share buybacks and paying down debt