Garmin Ltd (NYSE:GRMN) stock slid on Wednesday after the company reported its fiscal first-quarter 2026 results.

The company reported quarterly revenue growth of 14% year-on-year to $1.75 billion, beating the analyst consensus estimate of $1.72 billion.

The GPS navigation and wearable technology company's adjusted EPS of $2.08 topped the analyst consensus estimate of $1.82.

Segment Performance

  • Revenue from Fitness increased by 42% Y/Y to $546.82 million, driven by growth across all product categories, led by strong demand for advanced wearables.
  • Outdoor revenue declined 5% Y/Y at $417.53 million, primarily due to comparisons with strong prior-year product launch cycles.
  • Aviation revenue rose 18% Y/Y at $263.84 million, driven by the OEM and aftermarket product categories.
  • Marine revenue increased by 11% Y/Y to $355.02 million, with broad-based growth across multiple categories.
  • Auto OEM revenue increased 1% Y/Y to $170.28 million, with growth primarily driven by infotainment programs.

Margins And Cash Flow

The gross margin rose to 59.4% from 57.6% Y/Y. The operating margin expanded to 24.6% from 21.7% Y/Y.

In the quarter, the company generated $536 million in operating cash flow and $469 million in free cash flow.

It paid $174 million in dividends and repurchased $40 million in shares, of which $9 million was from the $500 million share repurchase program authorized through December 2028, leaving $491 million remaining in that repurchase program as of March 28, 2026.

As announced last February, the board will recommend to shareholders, for approval at the annual meeting on June 5, 2026, a 17% increase in the quarterly dividend per share to $1.05.

The company ended the quarter with $4.3 billion in cash and marketable securities.

Garmin Outlook

Garmin reiterated 2026 revenue of $7.900 billion versus the analyst consensus estimate of $7.966 billion.

It expects adjusted EPS of $9.35 against the analyst consensus estimate of $9.38.

GRMN Price Action: Garmin shares were down 2.18% at $242.41 at the time of publication on Wednesday, according to Benzinga Pro data.

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