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1. Company Snapshot

1.a. Company Description

Garmin Ltd.designs, develops, manufactures, markets, and distributes a range of wireless devices in the Americas, the Asia Pacific, Australian Continent, Europe, the Middle East, and Africa.Its Fitness segment offers running and multi-sport watches; cycling products; activity tracking and smartwatch devices; and fitness and cycling accessories.


This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms; and Connect IQ, an application development platform.The company's Outdoor segment offers adventure watches, outdoor handhelds, golf devices and mobile apps, and dog tracking and training devices.Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions comprising integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponder solutions, weather information and avoidance solutions, datalink and connectivity solutions, portable GPS navigators and wearables, and various services products.


The company's Marine segment provides chartplotters and multi-function displays, cartography products, fish finders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, entertainment, digital switching products, and trolling motors.Its Auto segment offers embedded computing models and infotainment systems; personal navigation devices; and cameras.The company sells its products through independent retailers, online retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as an online webshop, garmin.com.


Garmin Ltd.was founded in 1989 and is based in Schaffhausen, Switzerland.

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1.b. Last Insights on GRMN

Garmin Ltd.'s recent performance was driven by strong Q4 2025 earnings, with pro forma EPS of $2.79, surpassing the $2.40 consensus estimate by 16%. The company's consolidated revenue increased 17% to over $2.1 billion for Q4 2025, with full-year revenue growing 15% to $7.25 billion. Additionally, Garmin's gross margin reached 59.2% for Q4 2025, indicating a healthy profit margin. The company's strong earnings and revenue growth were likely driven by its strength in fitness wearables, marine products, and aviation systems.

1.c. Company Highlights

2. Garmin Q1 2026: Record Revenue, Robust Margins, and Strong Growth Trajectory

Garmin Limited shattered its own Q1 record, generating $1.75 billion in revenue—a 14% jump year‑over‑year—while its gross and operating margins expanded to 59.4% and 24.6%, respectively. Operating income surged to $432 million, up 30%, and pro‑forma EPS rose to $2.08, surpassing analysts’ $1.84 estimate and reflecting a 29% YoY gain.

Publication Date: May -01

📋 Highlights
  • Record Revenue:: Garmin achieved a 14% Y/Y increase in consolidated revenue to $1.75 billion in Q1 2026, setting a first-quarter record.
  • Margin Expansion:: Gross margin rose to 59.4% and operating margin to 24.6%, driving a 30% Y/Y surge in operating income to $432 million.
  • Strong Fitness Demand:: Fitness segment revenue jumped 42% to $547 million, with 62% gross margin and 29% operating margin, fueled by advanced wearables.
  • Free Cash Flow Growth:: Generated $469 million in free cash flow and paid $174 million in dividends, reflecting strong liquidity and capital returns.
  • Aviation Momentum:: Aviation revenue rose 18% to $264 million with a high order backlog, while Outdoor segment is expected to rebound in H2 2026.

Revenue Growth & Margin Expansion

The company’s top‑line momentum was driven by a 42% rise in the Fitness segment to $547 million, with a 62% gross margin and 29% operating margin. Although the Outdoor segment contracted 5% to $418 million, the Aviation and Marine divisions posted 18% and 11% growth, respectively, helping to offset the dip and preserve overall profitability.

Segment Highlights: Fitness, Outdoor, Aviation & Marine

Fitness wearables led the charge, as advanced smart devices captured health‑centric consumers. Aviation deliveries to builders spiked 18%, buoyed by a robust backlog, while Marine sales benefited from new Spy pole and 360 sonar launches. The Auto OEM unit remained stable, adding a modest $170 million in revenue.

Cash Flow, Dividends & Guidance

Free cash flow reached $469 million, enabling a $174 million dividend payout. Garmin’s 2026 guidance remains unchanged, with expectations of solid growth in Aviation and a rebound in Outdoor sales in the second half. The company forecasts a slight revenue dip in 2026 due to the BMW program ramp‑down, but a Mercedes ramp‑up is anticipated in 2027.

CEO Outlook & Cost Management

CEO Cliff Pemble expressed satisfaction with the “consistent and strong” demand trends, noting that component cost impacts are minimal this year but could surface in 2027. He highlighted Garmin’s openness to diverse wearable form factors and its expanding subscription‑based services, underscoring a focus on margin protection through operational efficiencies.

Valuation Snapshot

At a P/E of 27.87, Garmin trades above the industry average, supported by a robust ROIC of 17.07% and a dividend yield of 1.43%. The EV/EBITDA of 20.49 reflects the market’s confidence in its high‑margin operating model.

Market Outlook & Future Catalysts

Tariff headwinds remain a concern, yet Garmin’s strategic buffer of safety stock and efficient supply chain mitigate risk. Upcoming product releases—such as LTE‑enabled inReach devices and enhanced app engagement—alongside a healthy commercial aerospace backlog position Garmin for continued upside through 2027, despite anticipated input cost pressures.

3. NewsRoom

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Garmin: A Strong Q1 To Start The Year But There Could Be Back-Half Headwinds

Apr -30

Source: seekingalpha.com

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Garmin Ltd. (GRMN) Q1 2026 Earnings Call Transcript

Apr -29

Source: seekingalpha.com

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MG or GRMN: Which Is the Better Value Stock Right Now?

Apr -29

Source: zacks.com

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Garmin's Q1 Earnings Surpass Expectations, Revenues Rise Y/Y

Apr -29

Source: zacks.com

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Garmin (GRMN) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Apr -29

Source: zacks.com

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Garmin (GRMN) Beats Q1 Earnings and Revenue Estimates

Apr -29

Source: zacks.com

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Garmin posts upbeat quarterly results as demand for premium wearables holds up

Apr -29

Source: reuters.com

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Is Garmin (GRMN) Overvalued After Q1 2026 Earnings Beat? EPS $2.09 beats $1.83 est.; Revenue $1.75B beats $1.72B est.; GF Score 98/100, 11.9% overvalued

Apr -29

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.30%)

6. Segments

Outdoor

Expected Growth: 9.5%

Outdoor enthusiasts increasingly seek advanced GPS navigation and tracking features, propelling Garmin's Outdoor segment growth, driven by rising participation in recreational activities, such as hiking and cycling.

Fitness

Expected Growth: 10.5%

Garmin’s fitness segment growth is driven by increasing adoption of wearable devices, growing health and wellness awareness, and rising demand for GPS tracking devices in various fitness activities such as running, cycling, and swimming.

Marine

Expected Growth: 7.2%

Garmin Ltd's Marine segment growth is driven by increasing demand for advanced navigation systems, rising adoption of IoT-enabled devices, and growing participation in water sports and recreation activities.

Aviation

Expected Growth: 10.5%

Garmin's Aviation segment growth is attributed to increasing adoption of GPS technology, rising demand for navigation and communication systems in general aviation, and growing need for advanced safety features in aircraft.

Auto OEM

Expected Growth: 7.1%

Garmin's Auto OEM segment growth driven by increasing demand for in-vehicle navigation and telematics solutions, as well as rising adoption of connected and autonomous vehicles, is expected to remain steady.

7. Detailed Products

GPS Navigation Systems

Garmin's GPS navigation systems provide turn-by-turn directions and real-time traffic updates for drivers, motorcyclists, and truckers.

Wearable Devices

Garmin's wearable devices, such as smartwatches and fitness trackers, track fitness and health metrics, including heart rate, steps taken, and sleep quality.

Aviation Systems

Garmin's aviation systems provide navigation, communication, and surveillance solutions for general aviation, commercial, and military aircraft.

Marine Electronics

Garmin's marine electronics, including fish finders and chart plotters, provide navigation, sonar, and radar capabilities for boaters and fishermen.

Outdoor Recreation Devices

Garmin's outdoor recreation devices, including handheld GPS devices and action cameras, provide navigation, tracking, and video capture capabilities for outdoor enthusiasts.

Fleet Management Solutions

Garmin's fleet management solutions provide GPS tracking, vehicle monitoring, and driver behavior analysis for fleet operators.

8. Garmin Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Garmin's products are highly specialized and customized, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative products, Garmin's strong brand reputation and customer loyalty mitigate this force.

Bargaining Power Of Suppliers

Garmin has a diversified supplier base, reducing its dependence on any single supplier and limiting the bargaining power of suppliers.

Threat Of New Entrants

While new entrants may be attracted to the growing market for wearable devices and GPS technology, Garmin's established brand and significant R&D investments create barriers to entry.

Intensity Of Rivalry

The market for wearable devices and GPS technology is highly competitive, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.61%
Debt Cost 3.95%
Equity Weight 95.39%
Equity Cost 8.92%
WACC 8.69%
Leverage 4.83%

11. Quality Control: Garmin Ltd. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Flex

A-Score: 5.5/10

Value: 2.2

Growth: 7.1

Quality: 5.5

Yield: 0.0

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

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TE Connectivity

A-Score: 5.3/10

Value: 1.7

Growth: 6.6

Quality: 6.8

Yield: 2.5

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Arteche Lantegi Elkartea

A-Score: 4.7/10

Value: 1.3

Growth: 8.0

Quality: 5.9

Yield: 0.6

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Garmin

A-Score: 4.7/10

Value: 1.8

Growth: 6.4

Quality: 8.4

Yield: 3.8

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Inficon

A-Score: 4.6/10

Value: 0.9

Growth: 6.8

Quality: 7.7

Yield: 4.4

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Capgemini

A-Score: 4.5/10

Value: 4.3

Growth: 6.0

Quality: 5.8

Yield: 3.1

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

242.42$

Current Price

242.42$

Potential

-0.00%

Expected Cash-Flows