Garmin (GRMN) Financials

Garmin’s latest quarter shows a strong start to fiscal 2026, with revenue, profitability, and balance-sheet strength all holding up well. In Q1 2026, the company generated $1.75 billion in revenue and $405.1 million in net income, while producing $536.0 million in operating cash flow. Compared with the same quarter last year, growth was solid across most key lines, although inventory and dividends payable remain areas to watch.

• Revenue grew meaningfully year over year. Q1 2026 revenue rose to $1.75 billion from $1.54 billion in Q1 2025, showing continued demand and a healthy top-line trend.
• Profitability improved versus last year’s first quarter. Net income increased to $405.1 million from $332.8 million a year ago, and EPS rose to $2.09 from $1.73.
• Operating margin remains strong. Q1 2026 operating income of $431.7 million on $1.75 billion of revenue reflects solid core profitability.
• Free cash generation remains a key strength. Garmin produced $536.0 million in operating cash flow in Q1 2026, comfortably covering dividends and capital spending.
• The balance sheet is still very liquid. Garmin ended Q1 2026 with $2.29 billion in cash and equivalents and $411.0 million in short-term investments, plus $1.61 billion in long-term investments.
• Leverage appears low. Total liabilities were $1.68 billion against $9.27 billion in equity, indicating a conservative capital structure.
• Share count stayed stable. Diluted shares outstanding were 193.6 million in Q1 2026 versus 193.7 million in Q1 2025, so earnings growth was driven mainly by operations rather than buybacks.
• Gross profit dollars increased, but gross margin is still worth monitoring. Q1 2026 gross profit was $1.04 billion, up from $884.5 million a year ago, though the company still spends heavily on cost of revenue.
• Inventory remains elevated. Inventories were $1.85 billion at the end of Q1 2026, down from $1.89 billion in Q3 2025 but still high relative to recent periods.
• Dividend commitments and buybacks continue to use a lot of cash. Q1 2026 included $173.6 million in dividends and $39.6 million in repurchases, which reduces flexibility if growth slows.

Longer-term trend: Garmin has delivered a clear multi-year improvement since 2023. Revenue has climbed steadily, quarterly earnings have generally expanded, and operating cash flow has been consistently strong. The company’s capital-light balance sheet and large investment portfolio give it plenty of resilience.

What investors should watch next: whether revenue can keep growing from already elevated levels, whether inventory normalizes further, and whether Garmin can sustain strong cash generation while continuing to return capital to shareholders.