10-QPeriod: Q1 FY2026

GARMIN LTD Quarterly Report for Q1 Ended Mar 28, 2026

Filed April 29, 2026For Securities:GRMN

Summary

Garmin Ltd. reported a strong first quarter for fiscal year 2026, with net sales increasing by 14% year-over-year to $1.75 billion. This growth was primarily driven by a significant surge in the Fitness segment, up 42%, and solid performance in Aviation and Marine. Net income saw a substantial increase of 22% to $405.1 million, resulting in diluted earnings per share of $2.09, up from $1.72 in the prior year. The company also demonstrated robust operational efficiency, with operating income growing by 30% and consolidated gross margin improving to 59%. The company maintains a healthy liquidity position with approximately $4.3 billion in cash, cash equivalents, and marketable securities, supporting ongoing investments in R&D and capital expenditures, alongside returning capital to shareholders through dividends and share repurchases.

Financial Highlights

49 data points
Beta

Revenue

$1.75B

59.4% Gross Margin

Net Income

$405.08M

23.1% Net Margin

EPS (Diluted)

$2.09

Total Assets

$10.95B

Cash & Equivalents

$2.29B

Free Cash Flow

$469.37M

Financial Statements
Beta
Revenue$1.75B
Cost of Revenue$711.20M
Gross Profit$1.04B
R&D Expenses$295.82M
SG&A Expenses$314.81M
Operating Expenses$610.62M
Operating Income$431.67M
Net Income$405.08M
EPS (Basic)$2.10
EPS (Diluted)$2.09
Shares Outstanding (Basic)192.67M
Shares Outstanding (Diluted)193.56M

Key Highlights

  • 1Net sales increased by 14% to $1.75 billion in Q1 2026 compared to Q1 2025.
  • 2Net income rose by 22% to $405.1 million, with diluted EPS growing to $2.09.
  • 3The Fitness segment was a standout performer, with net sales up 42% year-over-year.
  • 4Consolidated gross margin improved by 180 basis points to 59%, driven by favorable foreign currency impacts and product mix.
  • 5Operating income increased by 30% to $431.7 million, reflecting strong sales growth and operational leverage.
  • 6The company repurchased shares valued at $9,000 under its new $500 million repurchase program initiated in February 2026.
  • 7Garmin ended the quarter with $2.29 billion in cash and cash equivalents, and $4.3 billion in total cash, cash equivalents, and marketable securities.

Frequently Asked Questions

The primary driver of revenue growth was the Fitness segment, which saw a 42% increase in net sales, largely due to strong demand for advanced wearables. The Aviation and Marine segments also contributed positively with 18% and 11% growth, respectively.

Foreign currency movements had a mixed but overall positive impact. The U.S. dollar strengthened against the Taiwan Dollar and Swiss Franc, contributing to foreign currency gains. While the U.S. dollar strengthened against the Euro, leading to a loss, the net effect on foreign currency gains for the quarter was positive, contributing to improved gross margins.

Garmin primarily uses cash flow from operations to fund capital expenditures, working capital, dividends, share repurchases, and potential acquisitions. The company returned capital to shareholders through dividend payments and initiated a new $500 million share repurchase program in February 2026, under which it repurchased $9,000 of its shares by the end of the quarter.

Inventories increased from $1.77 billion at the end of fiscal year 2025 to $1.85 billion at the end of the first quarter of 2026. While raw materials and finished goods saw increases, work-in-process decreased slightly. The company's inventory purchase obligations were $1.12 billion, with $862.5 million payable within 12 months, indicating continued investment in securing necessary components.