Garmin, Ltd. President and CEO Cliff Pemble said Wednesday morning, April 29, that the electronics maker for the fitness, outdoor, marine and aviation markets achieved “remarkable financial results” during the opening quarter of 2026. He said the trend for the quarter was a continuation of the positive trends they have been experiencing over the long term.

“This strong financial performance is a direct reflection of our impressive lineup of products that are essential to our customers’ lives, and our unique, highly diversified business model. We are very pleased with our results so far, and we look forward to the opportunities ahead as the year continues to unfold,” Pemble offered.

The company reported record consolidated revenue of approximately $1.75 billion in Q1, a 14 percent increase compared to the prior-year first quarter, paced by an amazing 42 percent jump in revenue in the Fitness category.

First Quarter Segment Summary

Fitness
Fitness segment revenue increased 42 percent in the first quarter with growth across all product categories, reportedly led by strong demand for advanced wearables.

Segment gross margins came in at 62 percent of net sales and operating margins amounted to 29 percent of net sales. The resulting operating income was in $158 million for the quarter.

“During the quarter, we launched the Varia RearVue 820, our brightest and most powerful radar tail light for cyclists,” the company said in an earnings release. “We also announced a new Connect IQTM messaging app for select smartwatches that allows customers to read, reply and react to WhatsApp messages right from their wrist, and the integration of select wearables with the Natural Cycles birth control and cycle tracking app, empowering women to better understand and manage their reproductive health.”

Outdoor
Outdoor segment revenue decreased 5 percent year-over-year (y/y) in the first quarter as Garmin pointed to tough comps against a strong prior-year quarter which included the launch of the Instinct 3 smartwatch family.

Segment gross margin came in at 67 percent and operating margins were 28 percent of net sales, resulting in $119 million of operating income.

“During the quarter, we released the Approach G82 premium GPS handheld with a built-in launch monitor, and the Approach J1, our first GPS watch specifically designed for junior golfers,” the company continued. “Also during the quarter, we launched the Zūmo XT3, our newest and most advanced motorcycle-focused GPS device, and Catalyst 2, a compact device for motorsports that helps high-performance drivers achieve faster times on the track.”

Aviation
Aviation segment revenue increased 18 percent y/y in the first quarter with growth attributed to both the OEM and aftermarket product categories. Gross margins and operating margins were 75 percent and 27 percent, respectively, resulting in $71 million of operating income.

Marine
Marine segment revenue increased 11 percent y/y in the first quarter, highlighted by “broad-based growth across multiple categories.”

Gross margins and operating margins were 56 percent and 26 percent, respectively, resulting in $91 million of operating income.

“During the quarter, we launched a new 360-degree scanning sonar system with the revolutionary Spy pole, allowing anglers to see a birds-eye view of fish and underwater structure in every direction,” the company highlighted. “Also, we launched the Quatix 8 Pro, our purpose-built nautical smartwatch with inReach technology for two-way satellite and cellular connectivity.”

Auto OEM
Auto OEM segment revenue increased 1 percent y/y during the first quarter with growth said to be primarily driven by infotainment programs. The operating loss narrowed to $6 million in the quarter due to gross profit improvement and lower research and development expenses.

Profitability & Expenses Summary
Gross margins expanded 180 basis points y/y to 59.4 percent of net sales in the quarter.

Operating margins expanded 290 basis points y/y to 24.6 percent of net sales in Q1. Total operating expenses in the first quarter were $611 million, a 11 percent increase over the prior year. Research and development and selling, general and administrative expenses increased 10 percent and 11 percent, respectively, driven primarily by personnel related costs.

The effective tax rate in the first quarter was 14.3 percent, which is comparable to the effective tax rate of 14.5 percent in the prior year quarter.

Garmin posted GAAP diluted EPS of $2.09 per share in Q1, up 22 percent versus $1.72 per diluted share in Q1 2025.

Pro forma diluted EPS was calculated at $2.08 per share in Q1, compared to $1.61 per diluted share in the year-ago period, representing a 29 percent y/y increase.

Balance Sheet & Cash Flows
Garmin Ltd. ended the quarter with cash and marketable securities of approximately $4.3 billion.

In the first quarter of 2026, Garmin reportedly generated operating cash flows of $536 million and free cash flow of $469 million.

The company paid a quarterly dividend of $174 million and repurchased $40 million of the company’s GRMN shares within the quarter, of which $9 million was from the $500 million share repurchase program authorized through December 2028, leaving $491 million remaining in that repurchase program as of March 28, 2026.

Fiscal Year 2026 Guidance
Garmin said it is maintaining its fiscal year 2026 guidance of approximately $7.9 billion revenue and pro forma EPS of $9.35 per share.

Dividend Recommendation
As previously announced in February 2026, the Board will recommend to the shareholders for approval at the annual meeting to be held on June 5, 2026, a cash dividend in the total amount of $4.20 per share payable in four equal quarterly installments.

Image, data and table courtesy Garmin, Ltd.