Garmin Stock Earnings Reports

Garmin reported a strong start to 2026 with record first-quarter revenue of $1.753 billion, up 14% year-over-year, driven by double-digit growth in Fitness (+42%), Aviation (+18%) and Marine (+11%). Gross margin expanded to 59.4% and operating margin to 24.6%, producing record first-quarter operating income of $432 million and pro forma EPS of $2.08 (up 29% YoY). Fitness (advanced wearables) was the primary growth engine, with broad strength across price tiers and new device/service integrations (WhatsApp replies on-device, Natural Cycles integration). Outdoor was down 5% vs a strong prior-year quarter but remains healthy with upcoming product cadence expected to improve H2 results. Aviation and Marine both delivered solid performance and product launches; Marine margin compression was mainly due to higher tariffs. Auto OEM revenue was roughly flat but will decline in 2026 as BMW winds down; a major Mercedes-Benz program is expected to drive significant growth beginning in 2027. Balance sheet and cash flow remain strong: cash & marketable securities ~ $4.3B, inventory ~$1.9B, free cash flow $469M; dividends paid $174M and $40M of buybacks in the quarter ( ~$491M repurchase capacity remaining). Management is maintaining February guidance for 2026, citing Q1 as an encouraging data point but noting the year is still unfolding and potential input-cost pressures may be more visible in 2027. They continue to hold safety stock to manage component cost/availability and have not recorded any receivable for potential tariff refunds.