GRMN · Garmin Ltd.

Garmin Ltd. delivered a strong start to fiscal 2026, reporting record first-quarter revenue of approximately $1.75 billion, a 14% increase year-over-year. This performance was primarily driven by the Fitness segment, which saw revenue surge 42% due to robust demand for advanced wearables, contributing $158 million in operating income. The Outdoor segment faced headwinds, declining 5% against a tough comparison to the prior year's Instinct 3 launch, while Aviation and Marine segments posted solid gains of 18% and 11%, respectively. The Auto OEM segment remained essentially flat with 1% growth but successfully narrowed its operating loss to $6 million.

Profitability improved significantly, with gross margins expanding 180 basis points to 59.4% and operating margins expanding 290 basis points to 24.6%. This margin expansion, combined with topline growth, propelled operating income to a record $432 million, a 30% increase. Pro forma diluted EPS rose 29% to $2.08. President and CEO Cliff Pemble attributed the results to a strong product lineup and the company's diversified business model.

Financially, the company remains robust, generating $536 million in operating cash flow and holding approximately $4.3 billion in cash and marketable securities. Garmin maintains its full-year 2026 guidance of approximately $7.9 billion in revenue and pro forma EPS of $9.35, signaling confidence in continued demand despite the strong prior-year comparisons in some segments.