GRMN US S&P 500Russell 1000 Earnings call
Garmin (GRMN) · Q2 2026 results and valuation
Share price: $293.93 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 29 Apr 2026
Net income up 33.8% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+33.8%
Net income vs Q1 2026
Outlook given
Net income 541.9M vs 405.1M
Revenue +15.3%
Against the same quarter last year (Q2 2025) it is +35.2%, so it is not just seasonal.
2 · How management spoke
Very upbeat
More upbeat than 95% of company calls
Answers to analysts: typical, but clearly less so than the script.
The step down under questioning is bigger than last call.
3 · What stood out
Garmin updated its 2026 guidance to project approximately $1.4 billion in free cash flow with capital expenditures of approximately $550 million.
Valuation
Is Garmin undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-27), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 14.2% growth a year (3-year revenue growth), the model's fair value is $241.34 a share — the stock trades 22% above it. Today's price assumes 17.1% growth a year.
Current price
$293.93
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.1% for 10 yrs
Fair value / share
$241.34
Buy below
$181.01
Price vs fair value
Overvalued 22%
Price vs buy-below price
Overvalued 62%
Read between the lines
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Guidance
Garmin expects full year 2026 free cash flow to be approximately $1.4 billion with capital expenditures of approximately $550 million.
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Figure
Consolidated revenue increased 11% to $2.02 billion, contributing to expanded gross and operating margins for the quarter.
Source quote
“Consolidated revenue increased 11%, to $2.02 billion We experienced robust expansion in consolidated gross and operating margins, the majority of which is attributable...”
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Fading
Gross margin rose to 59.4%, a 180 basis point increase from the prior year quarter, primarily due to favorable foreign currency impacts.
Source quote
“The increase was primarily due to favorable foreign currency impacts. Gross margin was 59.4%, a 180 basis point increase from the prior year quarter. Also for your reference, [we do not record] any benefit or receivable related to any potential refund of previously paid tariffs.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“We delivered strong growth, expanded profitability, invested in innovation, completed a strategic acquisition, and introduced new products across nearly every segment of our business.”
“Starting with business, revenue increased 25% to $757 million a new second quarter record driven by growth across all product categories led by continued strong demand for advanced wearables.”
“Consolidated revenue increased 11%, to $2.02 billion We experienced robust expansion in consolidated gross and operating margins, the majority of which is attributable to favorable product mix.”
Full figures
USD · ROIC.AI fundamentals (NYSE:GRMN, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-28 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.02B | 1.75B | +15.3% | 1.81B | +11.4% |
| Gross profit | 1.26B | 1.04B | +21.1% | 1.07B | +18.3% |
| Operating income | 615.5M | 431.7M | +42.6% | 472.3M | +30.3% |
| Net income | 541.9M | 405.1M | +33.8% | 400.8M | +35.2% |
| EPS | 2.81 | 2.09 | +34.5% | 2.07 | +35.8% |
| P/E today 31.9 | — | 25.7 | — | 25.7 | — |
Topics
Most discussed now
- New The cost structure is probably the same or even slightly less than what Garmin has globally right now, but in...
- Garmin does expect back half revenue to decline versus 2025, as it has reached the peak of its BMW volumes.
- How Garmin has been able to manage the business to be able to provide outstanding performance.
Faded since Q1 2026
- Dropped At the same time, many of the banks and monitors of personal credit usage and spending seem to be very...
- Dropped Garmin does have significant safety stock of some components that are under pricing pressure.
- Fading SG&A increased approximately $31 million compared to the prior year quarter.
- Fading Quarter operating expense increased by $59 million or 11%.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Shareholder vote results; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results; Other events · SEC 8-K
- Acquisition or disposal · SEC 8-K