Total revenue rose 14% to $1.75 billion, topping analyst estimates, as the GPS and wearable company posted record operating income
Garmin beat analyst expectations for revenue and profit in the first quarter of 2026, driven by a 42% jump in fitness segment revenue and steady gains across aviation and marine businesses.
First-quarter revenue reached $1.75 billion, a 14% increase year over year, clearing the $1.72 billion consensus estimate tracked by Reuters.
On an adjusted basis, earnings landed at $2.08 per share, well ahead of the $1.82 per share analysts had forecast, according to Reuters.
Operating income for the quarter reached $431.7 million, a 30% increase from the prior year. On the margin front, gross margin improved to 59.4% versus 57.6% in the year-ago period, while the operating margin moved up to 24.6% from 21.7%.
Cash generation was also robust, with operating cash flow coming in at $536 million and free cash flow at $469 million. At the close of the quarter, Garmin's balance sheet held approximately $4.3 billion in cash and marketable securities.
For the full year, Garmin left its 2026 outlook unchanged, continuing to project revenue of roughly $7.9 billion and adjusted earnings of $9.35 per share.
"We achieved remarkable financial results during the opening quarter of 2026 in a continuation of the positive trends we have been experiencing over the long term," CEO Cliff Pemble said in a statement. "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."
Shares slipped to $242.41 as of publication time, a decline of 2.18% on the day, per Benzinga data.
