GRMN · Q2 2026 Earnings

Bullish

Garmin

Reported July 29, 2026

30-second summary

Garmin printed $2.02B in Q2 (+11% YoY) and non-GAAP EPS of $2.81, beating consensus by 4.2% on revenue and 22.7% on EPS, and raised FY26 guidance to $8.05B revenue (from $7.9B) and $10.00 EPS (from $9.35). More importantly, every negative from Q1 reversed: Fitness operating margin snapped back to 37% (from 29%), Outdoor operating margin recovered to 34%, consolidated operating margin printed 30.4% — 580bps above the prior FY guide — and the FY operating margin guide itself was lifted to 27.0% from 25.5%. The Q1 deceleration narrative is gone.

Headline numbers

EPS

Q2 FY2026

$2.81

+22.7% vs est.

Revenue

Q2 FY2026

$2.02B

+11.0% YoY

+4.2% vs est.

Gross margin

Q2 FY2026

62.4%

Free cash flow

Q2 FY2026

$0.28B

Operating margin

Q2 FY2026

30.4%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$2.02B	$1.81B	+11.4%	$1.75B	+15.3%
EPS	$2.81	$2.17	+29.5%	$2.08	+35.1%
Gross margin	62.4%	58.8%	+360bps	59.4%	+300bps
Operating margin	30.4%	26.0%	+440bps	24.6%	+580bps
Free cash flow	$0.28B	$0.13B	+117.3%	$0.47B	-41.2%

Guidance

Raised FY2026 revenue and EPS guidance by +$150M and +$0.65 respectively, following a strong Q2 with revenue and EPS beats of 4.2% and 22.7% above consensus.

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	—	$2.022 billion	+4.2% above estimate	Beat
EPS (non-GAAP)	Q2 FY2026	—	$2.81	+22.7% above estimate	Beat
Gross Margin	Q2 FY2026	—	62.4%	+260bps above FY guide of 59.7%	Beat
Operating Margin	Q2 FY2026	—	30.4%	+340bps above FY guide of 27.0%	Beat

New guidance

Metric	Period	Guide	YoY
Gross Margin	FY 2026	59.7%	—
Operating Margin	FY 2026	27.0%	—
tax rate	FY 2026	16.5%	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY 2026	$7.9 billion	$8.05 billion	+$150 million (+1.9%)	Raised
EPS (non-GAAP)	FY 2026	$9.35	$10.00	+$0.65 (+6.9%)	Raised

Segment performance

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Fitness	$0.757B	$0.605B	+25.1%
Outdoor	$0.483B	$0.49B	-1.4%
Aviation	$0.269B	$0.249B	+8.0%
Marine	$0.341B	$0.299B	+14.0%
Auto OEM	$0.172B	$0.17B	+1.2%

Profitability

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Fitness Gross Margin	64%	60%	—
Fitness Operating Margin	37%	33%	—
Outdoor Gross Margin	69%	66%	—
Outdoor Operating Margin	34%	32%	—
Aviation Gross Margin	75%	74%	—
Aviation Operating Margin	27%	25%	—
Marine Gross Margin	61%	55%	—
Marine Operating Margin	29%	21%	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Americas	$0.979B	$0.878B	+11.5%
EMEA	$0.766B	$0.677B	+13.1%
APAC	$0.277B	$0.259B	+6.9%

Management tone

No transcript available for Q2-26, so this is a press-release read only. The tonal arc from Q1's generic "look forward to the opportunities ahead" to Q2's "very strong" performance and explicit confidence in raising guidance is the sharpest quarter-over-quarter shift in the coverage window. Q1's reaffirmation-without-upside-language now reads as management deliberately setting a low bar it knew it would clear — the $0.65 EPS raise on a single quarter is the largest in the four-quarter window and effectively reverses the entire FY26 deceleration story telegraphed at Q4-25.

Answers to last quarter's watch list

Fitness segment operating margin recovery — Fitness margin printed 37% in Q2-26, up 800bps QoQ from 29% and above the 32-34% target range flagged. The Q1 compression was one-quarter noise, not a structural incremental-margin problem.

Resolved positively

Outdoor Q2-26 print — Outdoor came in at -2% YoY, missing the +5% "comp/timing" bar and marking the third consecutive negative-to-flat print (-5%, 0% in the prior two). Revenue trajectory is unresolved; operating margin recovering to 34% takes some pressure off.

Resolved negatively

Implied H2 operating margin math — Q2 printed 30.4%, blowing through the 25% "arithmetically hard" floor. Combined with Q1's 24.6%, H1 averaged ~27.5%, and the FY guide has been lifted to 27.0% — the entire arithmetic worry is now inverted.

Resolved positively

Auto OEM segment margin disclosure — Third consecutive omission (Q4-25, Q1-26, Q2-26 all silent on the line). This is now a confirmed reporting pattern, consistent with the Q3-25 -10% print.

Resolved negatively

EMEA FX/pricing commentary — EMEA printed +13% in Q2, holding the +13-15% band from the prior three quarters. No FX or pricing commentary was disclosed in the release. The consistency argues for structural share gain over FX flatter, but the company didn't confirm either way.

Continue monitoring

What to watch into next quarter

Whether Fitness growth stabilizes above +20% with margin holding 35%+ — Q1's +42% / 29% and Q2's +25% / 37% are both anomalies in their own direction. A Q3 print of +25% growth at 35% margin would confirm a new steady state; sub-20% growth or sub-33% margin would reopen the cycle-peak conversation.

Outdoor crossing back into growth — three consecutive negative-to-flat quarters (0%, -5%, -2%). Q3-25 was -5%, so the Q3-26 comp is the easiest of the year. Anything below +3% would be a structural-multiple problem.

APAC deceleration — from +25% in Q1 to +7% in Q2 is a sharp reversal with no press-release commentary. Watch whether Q3 confirms a new lower run-rate or bounces back.

Auto OEM disclosure — third consecutive omission of segment operating margin. If Q3 also omits it while revenue growth remains near zero, treat this as structural management withdrawal from the line.

Implied H2 operating margin math — new FY guide of 27.0% against H1 actual of ~27.5% (Q1 24.6%, Q2 30.4%) implies H2 average of ~26.5%. Q3-25 printed 25.8%; the bar for Q3-26 is roughly there. A sub-26% Q3 print would suggest the FY guide has less cushion than the H1 numbers imply.

Sources

Garmin Q2 2026 press release: https://www.sec.gov/Archives/edgar/data/1121788/000119312526322113/grmn-ex99_1.htm
Tapebrief GRMN Q1-2026 brief (prior-quarter watch list, margin trajectory)
Tapebrief GRMN Q4-2025 brief (FY26 initial guide, tax-composition context)
Tapebrief GRMN Q3-2025 brief (Outdoor inflection, segment context)
Tapebrief GRMN Q2-2025 brief (multi-quarter guidance trajectory)

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