Garmin's fitness segment revenue jumped 42% as demand for premium wearables held up

Total revenue rose 14% to $1.75 billion, topping analyst estimates, as the GPS and wearable company posted record operating income

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Garmin beat analyst expectations for revenue and profit in the first quarter of 2026, driven by a 42% jump in fitness segment revenue and steady gains across aviation and marine businesses.

First-quarter revenue reached $1.75 billion, a 14% increase year over year, clearing the $1.72 billion consensus estimate tracked by Reuters.

On an adjusted basis, earnings landed at $2.08 per share, well ahead of the $1.82 per share analysts had forecast, according to Reuters.

The fitness segment generated $546.8 million in revenue, with growth across all product categories led by demand for advanced wearables, the company said. Operating income for the segment reached $158 million, with a gross margin of 62% and an operating margin of 29%.

Aviation revenue rose 18% to $263.8 million, with growth in both original equipment manufacturer and aftermarket categories. Marine revenue climbed 11% to $355 million on broad-based growth across multiple categories. Outdoor revenue declined 5% to $417.5 million, which the company attributed to a comparison against the prior-year quarter that included the launch of the Instinct 3 smartwatch family.

Operating income for the quarter reached $431.7 million, a 30% increase from the prior year. On the margin front, gross margin improved to 59.4% versus 57.6% in the year-ago period, while the operating margin moved up to 24.6% from 21.7%.

Cash generation was also robust, with operating cash flow coming in at $536 million and free cash flow at $469 million. At the close of the quarter, Garmin's balance sheet held approximately $4.3 billion in cash and marketable securities.

For the full year, Garmin left its 2026 outlook unchanged, continuing to project revenue of roughly $7.9 billion and adjusted earnings of $9.35 per share.

"We achieved remarkable financial results during the opening quarter of 2026 in a continuation of the positive trends we have been experiencing over the long term," CEO Cliff Pemble said in a statement. "This strong financial performance is a direct reflection of our impressive lineup of products that are essential to our customers' lives, and our unique, highly diversified business model."

Shares slipped to $242.41 as of publication time, a decline of 2.18% on the day, per Benzinga data.

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