Garmin Ltd. Q1 2026 Earnings Recap

Garmin shares finished up 1.3% after reporting first quarter results that saw double-digit revenue growth in three segments, expanding margins, and record Q1 operating income. Despite notable strength, management reiterated full-year guidance rather than raising it, signaling a wait-and-see approach for the remainder of the year.

Key Takeaways

• Consolidated revenue grew 14% year-over-year to $1.75 billion; operating income rose 30% to $432 million.
• Gross margin expanded to 59.4% and operating margin to 24.6% in the quarter.
• Fitness segment revenue surged 42%, leading growth, while Outdoor declined 5% due to a tough prior-year comparison.
• Marine revenue increased 11%, though segment margins compressed year-over-year due to higher tariffs.
• Auto OEM revenue was up 1%, but management expects it to decline for the full year as legacy programs wind down.