Garmin Tops Q2 Earnings Estimates on Fitness Growth, Ups FY26 Guidance
Zacks Equity Research
Thu, 30 July 2026 at 9:30 pm GMT+5:30
5 min read
Garmin Ltd. GRMN reported second-quarter 2026 pro forma earnings of $2.81 per share, beating the Zacks Consensus Estimate by 23.79%. The bottom line increased 29% year over year
Net sales rose 11% to $2.02 billion and surpassed the consensus estimate by 4.73%. Strong demand for advanced wearables led the growth
GRMN’s Fitness Business Drives Growth
Fitness revenues increased 25% year over year to $756.8 million, accounting for 37.4% of total sales. Growth was recorded across all product categories, led by continued strength in advanced wearables
The segment generated operating income of $277 million, up 40% from the prior-year quarter. Operating margin reached 37%, while gross margin was 64%. Garmin launched the Forerunner 70 and Forerunner 170 running smartwatches during the quarter and recently announced the CIRQA Smart Band, its first screenless smart band
Garmin Ltd. Price, Consensus and EPS Surprise
Garmin Ltd. price-consensus-eps-surprise-chart | Garmin Ltd. Quote
Garmin’s Outdoor Revenues Decline
Outdoor revenues fell 2% to $482.7 million, primarily due to weakness in consumer auto products and adventure watches. However, favorable product mix and disciplined execution supported improved profitability
Operating income rose 4% to $163.6 million, while operating margin reached 34%. Garmin expects stronger Outdoor revenue performance in the second half of 2026, aided by the timing of product launches. The company also expanded its golf portfolio with the Approach Z10 laser rangefinder
GRMN Posts Broad-Based Segment Gains
Ah in both original equipment manufacturer and aftermarket categories. Operating income increased 14% to $72.2 million, with an operating margin of 27%
Marine revenues climbed 14% to $341.4 million, reflecting growth across multiple product categories. Operating income surged 59% to $99.8 million, and operating margin was 29%. Results benefited from a tariff refund, though management noted that product margins improved even without the benefit
Auto OEM revenues increased 1% to $172.4 million, mainly driven by domain controllers. The segment posted operating income of $2.9 million compared to a loss of $9.5 million a year earlier, supported by improved gross profit and lower research and development expenses. Management expects revenues to decline and the segment to return to an operating loss in the second half before the planned launch of a major Mercedes-Benz program in early 2027
