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 (Basic)
$2.10
++21.39% YoY
Gross Margin
59.4%
++1.82% YoY
Operating Income
$431.67M
++29.70% YoY
Filed · Source: SEC EDGAR 10-Q 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: 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: 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: Source: 10-Q Financial Data, Cash Flow Statement
2 more insights available
Upgrade to unlockGarmin 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: Source: 10-Q Financial Data, Balance Sheet & Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.08 versus the $1.86 analyst consensus — a +12.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.75B | $1.54B | +14.23% |
Cost of Revenue | $711.2M | $650.55M | +9.32% |
Gross Profit | $1.04B | $884.54M | +17.83% |
Operating Income | $431.67M | $332.82M | +29.70% |
Net Income | $405.08M | $332.77M | +21.73% |
EPS (Basic) | $2.10 | $1.73 | +21.39% |
EPS (Diluted) | $2.09 | $1.72 | +21.51% |
R&D Expense | $295.82M | $268.12M | +10.33% |
SG&A Expense | $314.81M | $283.6M | +11.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $10.95B | $9.79B | +11.90% |
Current Assets | $6B | $5.45B | +10.14% |
Current Liabilities | $1.38B | $1.33B | +3.42% |
Stockholders' Equity | $9.27B | $8.18B | +13.34% |
Cash & Equivalents | $2.29B | $2.18B | +5.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $535.99M | $420.79M | +27.38% |
Investing Cash Flow | $-252.37M | $-132.6M | -90.32% |
Financing Cash Flow | $-260.05M | $-204.81M | -26.97% |
Dividends Paid | $173.64M | $144.57M | +20.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 59.4% | 57.6% | +1.82% |
Operating Margin | 24.6% | 21.7% | +2.94% |
Net Margin | 23.1% | — | — |
ROE | 4.4% | — | — |
ROA | 3.7% | — | — |
Current Ratio | $4.361 | — | — |
Garmin had an excellent Q1 2026, with revenue growing 14.2% YoY to $1.75B and diluted EPS rising 21.5% to $2.09. Operating income surged 29.7% to $432M, and gross margin expanded to 59.4%, reflecting strong demand and improving profitability.
The standout themes were broad revenue growth (+14.2%), significant margin expansion (operating margin up to 24.6% from 21.7%), and strong cash generation with operating cash flow of $536M. Garmin's balance sheet remains fortress-like with $2.29B in cash and a current ratio of 4.36x.
Yes, Garmin expanded both gross margin (to 59.4% from 57.6%) and operating margin (to 24.6% from 21.7%) in Q1 2026. This margin improvement was driven by revenue growing faster than costs, with cost of revenue rising only 9.3% versus revenue growth of 14.2%.
Garmin's financial health is very strong: it holds $2.29B in cash, has a current ratio of 4.36x, stockholders' equity of $9.27B, and operates with minimal financial leverage. The company also generated $536M in operating cash flow in just one quarter, demonstrating exceptional cash conversion.
Garmin paid $173.6M in dividends in Q1 2026, a 20.1% increase from $144.6M in Q1 2025, reflecting the company's commitment to returning capital to shareholders alongside its strong earnings growth.