Abstract

Garmin will report second-quarter 2026 results before the market opens on July 29, 2026 (Pre-Mkt), and this preview synthesizes current forecasts, recent performance, segment dynamics, and the latest institutional views.

Market Forecast

For the second quarter of 2026, forecasts indicate revenue of 1.90 billion US dollars, up 11.68% year over year, EBIT of 480.03 million US dollars, up 16.83% year over year, and adjusted EPS of 2.25, up 18.48% year over year; explicit margin forecasts are not indicated, so recent levels serve as reference points. The operating mix continues to be led by wearables and outdoor-oriented devices, with new health and marine products likely to influence sales cadence and price/mix in the quarter. Fitness remains the most promising growth engine after posting 546.82 million US dollars last quarter, up 42% year over year.

Last Quarter Review

In the first quarter of 2026, Garmin delivered revenue of 1.75 billion US dollars (up 14.23% year over year), a gross profit margin of 59.44%, GAAP net income attributable to shareholders of 405.00 million US dollars, a net profit margin of 23.10%, and adjusted EPS of 2.08 (up 29.19% year over year). Sequentially, net income declined 23.38% as quarter-on-quarter dynamics normalized, while both revenue and EPS exceeded typical compiled estimates and EBIT rose 29.70% year over year to 431.67 million US dollars. Segment performance was anchored by Fitness at 546.82 million US dollars, up 42% year over year, supported by robust demand and a refreshed product pipeline; Outdoor contributed 417.53 million US dollars, Marine contributed 355.02 million US dollars, Aviation contributed 263.84 million US dollars, and Auto/Mobile contributed 170.28 million US dollars.

Current Quarter Outlook

Fitness and Wearables Core

The Fitness franchise enters the quarter with solid momentum following a strong first quarter and a widened product line, including the July launch of the screenless CIRQA health and fitness band. The addition of CIRQA broadens the addressable customer set by targeting users who prefer a low-distraction, all-day tracking experience, which could support incremental units and cross-sell with the existing smartwatch lineup through the back-to-school and late-summer activity periods. With last quarter’s Fitness revenue at 546.82 million US dollars and up 42% year over year, the comp is demanding, yet the breadth of offerings and continued software feature updates provide multiple levers for sustaining double-digit year-over-year growth in the second quarter. Price/mix is a watch item: premium devices have been a key driver of gross margin resilience, and any skew toward higher-end multisport or specialty devices can preserve profitability even if units tilt toward entry-level additions like CIRQA. Inventory discipline in retail channels will shape shipment timing within the quarter; a balanced sell-in/sell-through profile is likely to be favored by investors looking for quality of revenue and the durability of margins.

Marine Momentum and Product Cycle

Marine is set up for a product-led quarter after the July 7, 2026 introduction of the LiveScope 2 Series, featuring higher resolution, improved noise reduction, and expanded sonar coverage. A mid-summer release aligns with peak fishing and boating activity in key regions, which may bring an immediate lift to demand for forward-facing sonar and compatible chartplotter ecosystems. The Marine segment contributed 355.02 million US dollars last quarter and tends to benefit from innovation cycles that drive accessory attach as well as replacement demand among avid anglers; early dealer feedback and channel replenishment patterns will be pivotal signals for how quickly LiveScope 2 pulls through. If the initial adoption curve is healthy, Marine can contribute an outsized share of incremental gross profit this quarter given the typically favorable margins on advanced sonar hardware and bundles. Integration across the ecosystem remains an angle to watch, with upsell opportunities into networking modules and performance transducers likely to support average selling prices.

What Will Drive the Stock Near Term

The stock’s near-term reaction is likely to hinge on three elements: the revenue cadence relative to the 1.90 billion US dollars forecast, margin commentary around gross margin versus the recent 59.44% level, and the tone of any updates to full-year guidance. On revenue, investors will look for confirmation that Fitness momentum and early marine uptake are sufficient to land in or above the mid-teens EBIT growth trajectory implied by the 480.03 million US dollars forecast and the 18.48% year-over-year EPS growth projection. On margins, the reference point is the prior quarter’s gross margin and net margin of 59.44% and 23.10%, respectively; stable component costs and a favorable product mix are ingredients for maintaining margin quality, though any promotional activity or mix shifts toward new, lower-priced devices could temper expansion. Finally, capital returns and balance sheet messaging add context: the quarterly dividend, which was raised to 1.05 US dollars per share through March 2027, underpins confidence in cash generation, but the market will likely prioritize evidence of sustainable operating leverage and clarity on the year’s revenue growth corridor. Product updates spanning aviation flight decks and outdoor devices expand the growth runway into the second half, yet the immediate question for the quarter is whether sell-through trends in wearables and live sonar validate the double-digit growth embedded in the forecast.

Analyst Opinions

Bullish opinions outweigh bearish views over the January 1 to July 22, 2026 window, with two notable positive stances to one negative. Tigress Financial reaffirmed a Strong Buy on May 21, 2026, and lifted its price target to 325 US dollars, highlighting continued product strength and revenue durability across core categories. Morgan Stanley upgraded Garmin to Equalweight from Underweight on April 28, 2026, and raised its price target to 252 US dollars, reflecting improving fundamentals and a healthier growth-to-valuation balance after sustained operational execution. The prevailing bullish camp emphasizes the combination of double-digit revenue growth, expanding EBIT trajectory, and resilient gross margin performance as reasonable underpinnings for upside risk to consensus, particularly if Q2 execution affirms that Fitness growth can compound while Marine benefits from the latest sonar cycle. These analysts also underscore that new product introductions across wearables, marine sonar, and avionics should keep the pipeline active into the second half of the year, leaving room for revenue mix to remain favorable and for operating leverage to translate into EPS growth consistent with or better than the 18.48% year-over-year estimate. In sum, the majority view expects Q2 to demonstrate continuity in the first quarter’s beat-and-raise cadence, with the focus on confirming top-line acceleration toward 1.90 billion US dollars and maintaining margin resilience as the key catalysts for shares.