Garmin Q2 Earnings Call Highlights

Garmin Q2 Earnings Call Highlights Written by MarketBeat July 29, 2026 Share Link copied to clipboard. Image from MarketBeat Media, LLC.

Key Points Garmin reported record Q2 2026 results , with revenue up 11% to $2.02 billion, operating income up 30% to $616 million, and pro forma EPS up 29% to $2.81. Strong product mix and demand for advanced wearables helped lift margins.

The company raised its full-year outlook to approximately $8.05 billion in revenue and $10 in pro forma EPS, while also increasing its gross- and operating-margin forecasts. Garmin expects higher memory costs to pressure results in the second half.

Fitness led segment growth with revenue up 25%, while Marine and Aviation also advanced; Outdoor declined modestly and Auto OEM faces a near-term program gap before a major Mercedes-Benz launch in 2027.

A New Focus for GoPro: Is a Takeover in the Frame? Garmin NYSE: GRMN reported record second-quarter results for 2026, with revenue rising 11% year over year to $2.02 billion and operating income increasing 30% to $616 million. The company raised its full-year outlook following stronger-than-expected first-half performance, citing demand for advanced wearables and growth in its marine and aviation businesses.

Pro forma earnings per share increased 29% to $2.81, while GAAP EPS was $2.80. Gross margin expanded 360 basis points from the prior-year period to 62.4%, and operating margin rose 440 basis points to 30.4%.

President and CEO Clifton Pemble said favorable product mix was the principal driver of margin gains, while results also benefited from a $21 million tariff refund recognized during the quarter. He said margin performance remained strong even without the refund.

Guidance Raised After Strong First Half Garmin increased its 2026 revenue forecast to approximately $8.05 billion from its previous estimate of $7.9 billion. The company now expects pro forma EPS of approximately $10, up from its prior forecast of $9.35.

The company raised its full-year gross-margin outlook to approximately 59.7%, 120 basis points above prior guidance and 100 basis points above its full-year 2025 gross margin. Garmin expects operating margin of approximately 27%, up 150 basis points from its earlier forecast.

Chief Financial Officer and Treasurer Doug Boessen said the company’s year-to-date results had not been significantly affected by higher memory costs, but those costs are expected to affect the second half and have been included in full-year guidance. The revised gross-margin outlook does not assume further tariff-refund benefits beyond the amount recognized in the second quarter.

Pemble said Garmin had benefited from strategic inventory of memory components earlier in the year. He added that the company is seeing pressure across component categories amid demand related to artificial intelligence, but intends to manage those costs using the same approach it used in addressing tariffs.

Fitness Leads Segment Growth Fitness revenue rose 25% to a second-quarter record of $757 million, driven by growth across product categories and continued demand for advanced wearables. The segment’s gross margin reached 64% and operating margin was 37%, generating $277 million in operating income. During the quarter, Garmin introduced the Forerunner 70 and Forerunner 170 running watches. It also recently announced the CIRQA Smart Band, a screen-less wearable that provides wellness and fitness insights without requiring a subscription.

Pemble said CIRQA includes the features customers expect from Garmin wearables through Garmin Connect, while users can add Garmin Connect+ features such as artificial intelligence tools and nutrition tracking. He said the product’s initial demand exceeded the company’s expectations, with Garmin expecting to work ...