The strong Q2 beat and upward guidance revision signal accelerating demand across most segments, especially Fitness and Marine. Continue holding/watching for sustained momentum in H2; Outdoor segment weakness bears monitoring but is small relative to the growth engine. The $21M tariff refund boost is non-recurring, but core operating leverage is evident.
Price Chart
Executive Summary
Garmin reported record Q2 2026 revenue of $2.02B (up 11% YoY) and record operating income of $616M (up 30%), with GAAP EPS of $2.80 beating consensus of $2.29 by 22%. Gross margin expanded 360 bps to 62.4% and management raised FY2026 guidance to ~$8.05B revenue and pro forma EPS of $10.00, up from prior $7.9B and $9.35, signaling accelerating momentum across Fitness (+25%) and Marine (+14%) segments.
Key Financial Metrics
Key Facts
- Record Q2 revenue of $2.02B (+11% YoY), record operating income of $616M (+30%)
- GAAP EPS $2.80 vs consensus $2.29 (+22.5% beat); pro forma EPS $2.81 (+29% YoY)
- Gross margin expanded to 62.4% from 58.8% (+360 bps), aided by $21M tariff refunds
- FY2026 guidance raised: revenue ~$8.05B (from ~$7.9B); pro forma EPS $10.00 (from $9.35)
- Fitness segment revenue surged 25% to $757M; Marine +14% to $341M; Outdoor declined 2%
- Generated Q2 operating cash flow of $404M and FCF of $276M; cash & securities ~$4.4B
- Acquired TrainingPeaks and TrainHeroic; launched AXIS cockpit displays and CIRQA smart band
Financial Impact
Revenue beat by ~$82M (4%) and EPS beat by $0.51 (22%); full-year revenue guidance raised by $150M and EPS by $0.65
Risk Factors
- Outdoor segment revenue declined 2% YoY, driven by consumer auto and adventure watch weakness
- Consensus estimates may need to rise significantly; if guidance is not raised further later, disappointment risk exists
- $21M in tariff refunds boosted gross margin — may not recur in H2
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-322113 |
| Document: grmn-20260729.htm | 0001193125-26-322113 |
| Document: 0001193125-26-322113-index-headers.html | 0001193125-26-322113 |
| Document: 0001193125-26-322113-index.html | 0001193125-26-322113 |
| Document: 0001193125-26-322113.txt | 0001193125-26-322113 |
| 8-K Data (Synthetic) | 0001193125-26-322113 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 31, 2026 8w ago | Insider Cluster | $304.76 $284.11 | ▼ −6.78% | ▼ −8.01% | $281.16 (−7.74%) |
Jul 31, 2026 8w ago | Insider Cluster | $304.76 $284.11 | ▼ −6.78% | ▼ −8.01% | $281.16 (−7.74%) |
Jul 31, 2026 8w ago | Insider Cluster | $304.76 $284.11 | ▼ −6.78% | ▼ −8.01% | $281.16 (−7.74%) |
Jul 29, 2026 9w ago | 8-K | $294.83 $289.02 | ▼ −1.97% | ▼ −6.99% | $281.16 (−4.64%) |
Jul 23, 2026 10w ago | Press Release | $240.10 $293.09 | ▲ +22.07% | ▲ +18.76% | $281.16 (+17.10%) |
Jun 9, 2026 16w ago | Insider Cluster | $237.85 $248.68 | ▲ +4.55% | ▲ +3.11% | $281.16 (+18.21%) |
Jun 9, 2026 16w ago | Insider Cluster | $237.85 $248.68 | ▲ +4.55% | ▲ +3.11% | $281.16 (+18.21%) |
Jun 9, 2026 16w ago | Insider Cluster | $237.85 $248.68 | ▲ +4.55% | ▲ +3.11% | $281.16 (+18.21%) |
Jun 8, 2026 16w ago | 8-K | $237.85 $248.68 | ▲ +4.55% | ▲ +3.11% | $281.16 (+18.21%) |
Apr 22, 2026 23w ago | DEFA14A | $266.59 $228.69 | ▼ −14.22% | ▼ −17.38% | $281.16 (+5.47%) |
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