Garmin’s Fitness Business Explodes 25%, Stock Surges
GRMN
Garmin Ltd.(NYSE:GRMN) stock climbed in Wednesday trading after the company reported stronger-than-expected second-quarter 2026 results, raised its full-year outlookand expanded margins
The maker of GPS navigation devices and wearable technology reported revenue of $2.02 billion, up 11% from a year earlier and above the analyst consensus estimate of $1.90 billion
Adjusted earnings were $2.81 per share, topping the analyst consensusestimate of $2.25
Fitness revenue increased 25% year over year to $756.8 million, driven by growth across all product categories, led by strong demand for advanced wearables
Outdoor revenue fell 2% to $482.7 million, primarily due to declines in the consumer auto and adventure watch categories
Ain OEM and aftermarket products
Marine revenue increased 14% to $341.4 million, reflecting broad-based growth across multiple product categories
Auto OEM revenue edged up 1% to $172.4 million, primarily driven by domain controllers
Margins And Cash Flow
Gross margin expanded to 62.4% from 58.8% a year earlier, while operating margin improved to 30.4% from 26.0%
Garmin generated $404 million in operating cash flow and $276 million in free cash flow during the quarter
The company paid $202 million in dividends and repurchased $43 million of its shares. As of June 27, $448 million remained under its share repurchase authorization
Shareholders approved an annual cash dividend of $4.20 per share at the company’s 2026 annual meeting. The dividend will be paid in four equal installments. The first payment was made on June 26, and the second is scheduled for Sept. 25
Garmin ended the quarter with $4.4 billion in cash and marketable securities
Outlook Raised
Garmin raised its full-year 2026 revenue forecast to $8.05 billion from $7.90 billion, above the analyst consensusestimate of $7.96 billion
The company also increased its adjusted EPS outlook to $10.00 from $9.35, compared with the analyst consensus estimate of $9.55
Price Action
GRMN Price Action:Garmin shares were trading up 15.30% at $292.46 at the time of publication on Wednesday
Photo via Shutterstock
Read Also: Apple Is Making an Existential AI Bet—One Analyst Thinks It’s Wrong
BenzingaDividendsETFsEarningsShare buybacksUS stocks
Read more from Benzinga
