Garmin Ltd.

What they do

Garmin designs, develops, manufactures, markets, and distributes GPS-enabled products and other navigation, communications, sensor-based, and information products and services. It serves five primary markets: fitness, outdoor, aviation, marine, and auto OEM, selling through retailers, dealers, distributors, and directly via its webshop and apps like Garmin Connect and Garmin Connect+.

Revenue drivers

• Fitness — Largest segment; Q2 2026 net sales of $756.8 million, up 25% YoY; 37% of total net sales; includes wearables, connected devices, and Garmin Connect+ premium subscriptions.
• Outdoor — Second largest; Q2 2026 net sales of $482.7 million, down 2% YoY; 24% of total net sales; includes handheld GPS and adventure watches.
• Marine — Q2 2026 net sales of $341.4 million, up 14% YoY; 17% of total net sales; includes chartplotters, sonar, and marine autopilot systems.
• Aviation and Auto OEM — Aviation Q2 2026 net sales of $268.7 million, up 8% YoY (13% of total); Auto OEM Q2 2026 net sales of $172.4 million, up 1% YoY (9% of total).

Recent performance

For Q2 2026 (13 weeks ended June 27, 2026), Garmin reported record consolidated revenue of approximately $2.02 billion, an 11% increase YoY. Gross margin expanded to 62.4% from 58.8%, and operating income rose 30% to $616 million, with operating margin at 30.4%. GAAP diluted EPS was $2.80 (up 35% YoY) and pro forma diluted EPS was $2.81 (up 29%). For the first half of 2026, revenue was $3.78 billion, up 13% YoY, with operating income of $1.05 billion (up 30%).

Strategy

Garmin continues to innovate across its five segments, recently launching AXIS, a scalable family of flight displays, and CIRQA, its first screenless smart band with health and wellness features. The company completed the strategic acquisition of TrainingPeaks and TrainHeroic, leading training platforms for athletes and coaches. It invests in premium connected services like Garmin Connect+ and aims to expand margins through product mix and operational efficiency.

Risks

• Global supply chain constraints — Recent global supply constraints of memory chips have increased operational complexities and costs, which may unfavorably impact future gross margin.
• Trade policy and tariffs — Rapidly changing global trade policies, particularly those affecting the U.S., increase economic and operational uncertainties that could significantly impact results.
• Foreign currency fluctuations — Currency volatility can affect reported revenue and profitability, as Garmin operates globally with sales in multiple currencies.
• Economic and geopolitical conditions — Global economic and geopolitical conditions impact operations, though management believes its diversified model provides resilience.

Outlook

Management raised full-year guidance following record second quarter results. The company expects continued double-digit revenue growth, driven by strength in Fitness and Aviation, while monitoring margin pressures from supply constraints and trade policies. Outlook includes contributions from recent acquisitions and new product launches.