10-QPeriod: Q2 FY2026

GARMIN LTD Quarterly Report for Q2 Ended Jun 27, 2026

Filed July 29, 2026For Securities:GRMN

Summary

Garmin Ltd. reported robust financial performance for the 26-week period ended June 27, 2026, demonstrating significant year-over-year growth across key metrics. Net sales increased by 13% to $3.78 billion, driven by strong demand in the Fitness segment, which saw a 32% surge, and solid contributions from Aviation and Marine. This top-line growth translated into substantial profitability improvements, with gross profit rising 18% and operating income surging 30% to $1.05 billion. The company's operating income margin expanded to 28% from 24% in the prior year, reflecting improved operational efficiency and favorable product mix. Financially, Garmin maintained a strong balance sheet with approximately $4.4 billion in cash, cash equivalents, and marketable securities as of June 27, 2026. The company generated robust operating cash flow of $939.5 million for the first half of the year, supporting its capital allocation priorities, including dividends and share repurchases. Despite some headwinds like supply chain complexities and foreign currency fluctuations, Garmin's diversified business model and focus on innovation appear to be driving sustained growth and profitability, making it an attractive prospect for investors seeking exposure to the technology and outdoor recreation sectors.

Key Highlights

  • 1Net sales grew 13% year-over-year to $3.78 billion for the 26-week period ended June 27, 2026.
  • 2Operating income increased 30% year-over-year to $1.05 billion for the first half of 2026.
  • 3Consolidated gross margin improved to 61% from 58% in the same period, driven by favorable product mix and tariff refunds.
  • 4The Fitness segment was a significant growth driver, with net sales up 32% for the first half of 2026.
  • 5The company maintained a healthy cash position, with $4.4 billion in cash, cash equivalents, and marketable securities as of June 27, 2026.
  • 6Operating cash flow was strong at $939.5 million for the first half of 2026.
  • 7Dividends paid increased, reflecting confidence in ongoing financial health and commitment to shareholder returns.

Frequently Asked Questions

Garmin Ltd. demonstrated strong financial performance for the 26-week period ended June 27, 2026. Net sales increased by 13% to $3.78 billion, and operating income grew by 30% to $1.05 billion, indicating significant top-line and bottom-line growth compared to the prior year.

The Fitness segment was the primary driver of revenue growth, with net sales increasing by 32% for the first half of 2026. The Aviation and Marine segments also showed robust growth, up 13% and 13% respectively.

Garmin's profitability has improved considerably. The consolidated gross margin increased to 61% from 58% in the same period last year, benefiting from favorable product mix and tariff refunds. Operating income margin also expanded to 28% from 24%, driven by increased sales and efficient cost management.

Garmin maintains a strong liquidity position. As of June 27, 2026, the company held approximately $4.4 billion in cash, cash equivalents, and marketable securities. Furthermore, it generated robust operating cash flow of $939.5 million in the first half of 2026, supporting its financial flexibility.