Garmin Ltd. reported record first-quarter results on April 29, led by a sharp jump in its fitness business, even as the stock slipped in pre-market trading amid investor concerns about higher costs and swelling inventories.
Fitness revenue rose to $547 million in the 13 weeks ended March 28, 2026, up 42 percent from $385 million a year earlier. Operating income more than doubled to $158 million, lifting the segment operating margin to 29 percent.
Garmin Q1 2026 – Income Statement
Garmin Ltd. · 13-Weeks Ended March 28, 2026 · USD thousands
Mar 28, 2026Mar 29, 2025YoY
Net sales
$1,753,489
$1,535,099
14%
Fitness
546,822
384,722
42%
Outdoor
417,530
438,496
(5)%
Aviation
263,841
223,114
18%
Marine
355,016
319,438
11%
Auto OEM
170,280
169,329
1%
Gross profit
1,042,289
884,545
18%
Gross margin %
59.4%
57.6%
—
Operating income
431,665
332,824
30%
Operating income %
24.6%
21.7%
—
Source: Garmin Ltd. Q1 2026 Earnings Press Release, April 29, 2026
Garmin said the increase was driven largely by higher unit volumes, with advanced wearables—GPS devices that can run third-party apps—named as the main engine of growth. Chief executive Cliff Pemble said the results point to continued market share gains.
Fitness seen as “the strongest contributor” to 2026 growth
During the quarter, Garmin broadened its wearables ecosystem through two third-party integrations.
A new Connect IQ messaging application for select smartwatches enables users to read, reply and react to WhatsApp messages directly from the device. The company also announced integration with Natural Cycles, a birth control and fertility tracking application, allowing female users to access reproductive health data through compatible Garmin wearables. On the hardware side, Garmin released the Varia RearVue 820, a radar-equipped tail light for cyclists.
Pemble confirmed on the earnings call that the fitness segment is expected to be “the strongest contributor to 2026 consolidated growth,” a position the company had flagged at its February results.
Outdoor segment declines 5% in Q1
Garmin’s outdoor segment posted its only revenue drop of the quarter, down 5% year-on-year to $418 million from $438 million in Q1 2025. Operating income fell 8% to $119 million. Gross margin was 67% and operating margin 28%.
Chief executive Cliff Pemble said the decline reflected a difficult comparison with last year, when the company launched the Instinct 3 smartwatch family. He said the fēnix line performed well in the period.
Products launched in the quarter included the Approach G82, a handheld GPS device with an integrated launch monitor, and the Approach J1, which Pemble called the company’s first GPS golf watch designed for junior players.
For the full year, management said it expects Q2 to track Q1 and a stronger second half, citing the timing of planned product launches. Garmin said it expects outdoor growth in 2026 to improve versus 2025.
Garmin beats on Q1 profit, but shares slide as costs and inventory climb
Garmin reported group revenue of $1.75 billion for the quarter, up 14% year-on-year and the company’s highest first-quarter figure. Operating income rose 30% to $432 million, pushing operating margin up 290 basis points to 24.6%.
The stock fell about 3% in pre-market trading after the release, as analysts pointed to rising operating expenses and higher inventory levels. Research and development costs increased 10% to $296 million, while selling, general and administrative expenses rose 11% to $315 million, which Garmin attributed to personnel-related costs. Inventory ended the quarter at $1.85 billion, up both year-on-year and from the prior quarter.
Management kept full-year 2026 guidance unchanged at roughly $7.9 billion in revenue and pro forma EPS of $9.35. Chief executive Cliff Pemble said the first quarter is typically the company’s seasonally weakest and that guidance would be revisited later in the year.