Garmin Ltd. GRMN reported first-quarter 2026 pro forma earnings of $2.08 per share, beating the Zacks Consensus Estimate by 13%. The bottom line improved 29% on a year-over-year basis.
Net sales were $1.75 billion, which surpassed the Zacks Consensus Estimate by 1.8%. The figure increased 14% from the year-ago quarter.
GRMN’s year-over-year growth in the top line was attributed to the solid momentum across Fitness, Aviation, and Marine segments, partially offset by the Outdoor segment.
Garmin Ltd. Price, Consensus and EPS Surprise
Garmin Ltd. price-consensus-eps-surprise-chart | Garmin Ltd. Quote
Garmin’s Segmental Details
Outdoor (23.8% of Net Sales): The segment generated sales of $417.5 million in the reported quarter, which declined 4.8% year over year, primarily due to tough comparison against the prior-year launch of the Instinct 3 smartwatch family. Operating income was $119 million, with a 28% operating margin.
Fitness (31.2%): The segment recorded sales of $546.8 million, reflecting a 42.1% year-over-year increase, led by strong demand for advanced wearables. Operating income was $158 million, with a 29% operating margin.
Aviation (15.1%): The segment achieved sales of $263.8 million, up 18.3% year over year, driven by growth in both OEM and aftermarket categories. Operating income came in at $71 million, with a 27% margin.
Marine (20.2%): Garmin posted sales of $355 million, up 11.2% year over year, as Garmin expanded its portfolio with a new 360-degree scanning sonar system and the quatix 8 Pro nautical smartwatch with inReach technology. Operating income was $91 million, resulting in a 26% margin.
Auto OEM (9.7%): Sales reached $170.3 million, up 0.6% year over year, driven by infotainment programs. The segment reported an operating loss of $6 million.
Garmin’s Operating Results
In the first quarter of 2026, Garmin’s gross margin was 59.4%, expanding 180 basis points year over year. Operating expenses of $611 million increased 11% from the prior-year quarter.
Operating income rose to $432 million, up 30% year over year, with operating margin expanding 290 basis points to 24.6%.
Garmin’s Balance Sheet & Cash Flow
As of March 28, 2026, Garmin held $4.3 billion in cash and marketable securities, up from $4.1 billion in the previous quarter.
Operating cash flow for the first quarter of 2026 was $536 million, and free cash flow was $469 million.
The company paid a quarterly dividend of $174 million and repurchased $40 million in shares during the quarter.
Garmin Maintains 2026 Guidance
Garmin expects full-year 2026 revenues to be $7.9 billion, indicating continued growth momentum. The Zacks Consensus Estimate for the same has been pegged at $7.96 billion, indicating year-over-year growth of 9.8%.
The company projects pro forma EPS of $9.35. The Zacks Consensus Estimate for the same has been pegged at $9.41, indicating year-over-year growth of 9.9%.
Zacks Rank and Other Stocks to Consider
Currently, GRMN carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Arista Networks ANET, Advanced Energy AEIS and Amphenol APH, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Arista Networks have gained 26.1% year to date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.54 per share, up by 2 cents over the past 30 days, indicating an increase of 18.8% year over year.
Shares of Advanced Energy have gained 76.3% year to date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.32 per share, up by 12 cents over the past 60 days, indicating a rise of 29.8% year over year.
Amphenol shares have surged 6.4% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at 95 cents per share, up by a penny over the past 30 days, indicating an increase of 50.8% year over year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Garmin Ltd. (GRMN): Free Stock Analysis Report
Amphenol Corporation (APH): Free Stock Analysis Report
Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).