Garmin Q1 Revenue Rises 14% to $1.75B with 42% Fitness Growth
Garmin delivered Q1 revenue of $1.75 billion, beating estimates with a 14% year-over-year increase driven by a 42% jump in fitness segment sales. Adjusted EPS reached $2.08, topping the $1.82 forecast, while operating income grew 30% to $431.7 million and free cash flow hit $469 million.
1. Q1 Financial Highlights
Garmin reported first-quarter revenue of $1.75 billion, up 14% year-over-year and exceeding estimates. Adjusted earnings per share climbed to $2.08, surpassing the $1.82 forecast, driving operating income to $431.7 million, a 30% increase.
2. Segment Performance Details
The fitness segment revenue surged 42% to $546.8 million, with a 62% gross margin and 29% operating margin. Aviation sales rose 18% to $263.8 million, marine revenue increased 11% to $355 million, while outdoor revenue fell 5% to $417.5 million due to prior-year product launches.
3. Cash Flow and Balance Sheet
Operating cash flow reached $536 million and free cash flow totaled $469 million for the quarter. Garmin ended the period with approximately $4.3 billion in cash and marketable securities, bolstering its financial flexibility.
4. Full-Year Outlook and Guidance
Garmin maintained its full-year 2026 guidance, projecting roughly $7.9 billion in revenue and $9.35 in adjusted earnings per share. Management attributes performance to its diversified product lineup and continued consumer demand for advanced wearables.