Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Garmin delivered a strong Q1 2026 with revenue of $1.75B (+14.2% YoY), operating income surging 29.7% to $432M, and diluted EPS of $2.09 (+21.5%), reflecting broad-based demand growth and meaningful margin expansion.
Revenue
$1.75B
+14.23% YoY
EPS (Diluted)
$2.09
+21.51% YoY
Gross Margin
59.4%
+1.8 pts YoY
Operating Income
$431.67M
+29.70% YoY
Source: SEC XBRL
Garmin (GRMN) reported Q1 FY2026 revenue of $1.75B, up 14.2% year over year. Operating margin was 24.6%, up 2.9 points from 21.7% a year earlier. Operating cash flow was $535.99M, up 27.4% year over year. GRMN's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.81 | 2.29 | Beat +22.7% |
| Mar 2026This filing | 2.08 | 1.86 | Beat +12.1% |
| Dec 2025 | 2.79 | 2.44 | Beat +14.2% |
| Sep 2025 | 1.99 | 2.00 | Miss -0.6% |
Reported EPS of $2.08 versus the $1.86 analyst consensus — a +12.1% beat for Mar 2026.
Compiled by AI from this SEC filing
Total revenue reached $1.75B in Q1 2026, up 14.2% from $1.54B in Q1 2025, demonstrating sustained consumer and professional demand for Garmin's diversified product portfolio spanning fitness, outdoor, aviation, marine, and auto segments.
Source: 10-Q Financial Data, Income Statement
Gross margin improved to 59.4% from 57.6% a year ago (+1.8 percentage points), while operating margin expanded to 24.6% from 21.7% (+2.9 percentage points), indicating improved product mix, pricing power, and operating leverage.
Source: 10-Q Financial Data, Key Ratios
Operating cash flow grew 27.4% YoY to $536M, outpacing net income growth of 21.7%, which signals high-quality earnings and efficient working capital management.
Source: 10-Q Financial Data, Cash Flow Statement
Investing cash outflows nearly doubled to -$252M (vs. -$133M in Q1 2025), suggesting accelerated capital expenditures or acquisitions, while dividends paid rose 20.1% to $174M, reflecting continued shareholder returns.
Source: 10-Q Financial Data, Cash Flow Statement
Stockholders' equity grew 13.3% YoY to $9.27B, total assets reached $10.95B, and the current ratio stands at a very healthy 4.36x, underscoring Garmin's fortress-like financial position with no meaningful debt burden.
Source: 10-Q Financial Data, Balance Sheet
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Garmin operates globally and generates a significant portion of revenue outside the United States, making earnings sensitive to fluctuations in foreign exchange rates. A strengthening U.S. dollar could reduce the reported value of international revenues and compress margins. This risk is particularly relevant given Garmin's manufacturing and sales presence across Europe and Asia.
Source: 10-Q Financial Data, Balance Sheet & Income Statement
Investing cash outflows surged 90.3% YoY to -$252M in Q1 2026, which may reflect significant capital expenditures or M&A activity. If these investments do not generate expected returns, they could weigh on future profitability and free cash flow. Integration risk is also a concern if acquisitions are involved.
Source: 10-Q Financial Data, Cash Flow Statement
R&D expenses rose 10.3% YoY to $296M and SG&A increased 11.0% to $315M, together representing a substantial and growing cost base. While currently offset by strong revenue growth, any deceleration in top-line growth could pressure operating margins if these costs are not scaled back proportionally.
Source: 10-Q Financial Data, Income Statement
Garmin's fitness, outdoor, and auto segments are exposed to discretionary consumer spending, which can decline sharply during economic downturns or periods of reduced consumer confidence. A slowdown in consumer demand could disproportionately impact revenue given the premium pricing of many Garmin products.
Source: 10-Q Financial Data, Income Statement
As a hardware-centric company, Garmin depends on a global supply chain for semiconductors and other components. Disruptions from geopolitical tensions, trade restrictions, or supplier constraints could increase costs or delay product availability, negatively impacting revenue and margins.
Source: 10-Q Financial Data, Cost of Revenue
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.75 $B | 1.54 $B | +14.23% |
Cost of Revenue $M | 711.20 $M | 650.55 $M | +9.32% |
Gross Profit $B | 1.04 $B | 0.88 $B | +17.83% |
Operating Income $M | 431.67 $M | 332.82 $M | +29.70% |
Net Income $M | 405.08 $M | 332.77 $M | +21.73% |
EPS (Basic) $ | 2.10 $ | 1.73 $ | +21.39% |
EPS (Diluted) $ | 2.09 $ | 1.72 $ | +21.51% |
R&D Expense $M | 295.82 $M | 268.12 $M | +10.33% |
SG&A Expense $M | 314.81 $M | 283.60 $M | +11.00% |
Answers draw on this SEC filing and the data on this page
Garmin Ltd. reported strong financial results for 2026-Q2, with net sales increasing 11% year-over-year to $2.02B and net income rising 35% to $541.9M, driven by robust performance in its Fitness segment.
Garmin delivered a strong FY2025 with revenue rising 15.1% to $7.25B and net income growing 17.9% to $1.66B, driven by broad-based segment growth while maintaining industry-leading margins and a fortress balance sheet.