Slides
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Second Quarter 2026 Earnings July 29, 2026
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Safe Harbor Statement This presentation includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “anticipates,” “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings. Any statements regarding the Company’s expected fiscal 2026 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company’s expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, tariffs and other global trade related impacts, potential future acquisitions, share repurchase programs, currency movements, expenses, pricing, new product launches, market reach, statements relating to possible future dividends, and the Company’s plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors th at are described in the Annual Report on Form 10-K for the year ended December 27, 2025 filed by Garmin with the Securities and Exchange Commission (Commission file number 001-41118). A copy of Garmin’s 2025 Form 10-K can be downloaded from https://investors.garmin.com/financials/sec-filings/default.aspx. All information provided in this presentation and in the attachments is as of June 27, 2026. We undertake no duty to update this information unless required by law.
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Business Update Cliff Pemble President and CEO
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Consolidated Q2 2026 BUSINESS INSIGHTS Revenue Operating marginOperating income • Record second quarter consolidated revenue • Gross and operating margins expanded, resulting in record second quarter operating income • Record second quarter pro forma EPS of $2.81, up 29% over the prior-year quarter • Raising 2026 revenue and pro forma EPS guidance • Recently completed the strategic acquisition of TrainingPeaks® and TrainHeroic® $2.02B 30.4% 11% y/y growth $616M 30% y/y growth
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Fitness Q2 2026 SEGMENT INSIGHTS Revenue Operating marginOperating income • Revenue growth across all product categories led by strong demand for advanced wearables • Launched Forerunner® 70 and Forerunner 170 running smartwatches • Recently announced CIRQATM Smart Band, a screenless smart band that includes rich health and wellness features $757M 25% y/y growth $277M 37% 40% y/y growth
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SEGMENT INSIGHTS Revenue Operating margin Operating incomeOutdoor Q2 2026 • Revenue declined primarily due to consumer auto and adventure watches product categories • Expanded our golf offering with the Approach® Z10 compact laser rangefinder • Released our Trends in Golf Data Report, highlighting increased participation in golf $483M 2% y/y decline $164M 34% 4% y/y growth
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Aviation Q2 2026 SEGMENT INSIGHTS Revenue Operating marginOperating income • Revenue growth driven by both OEM and aftermarket product categories • Named Best Supplier of the Year by Embraer for the 11th consecutive year • Launched the D2TM Mach 2 Pro, our first aviation smartwatch with inReach technology • Recently unveiled AXISTM, a new generation of highly integrated flight displays $269M 8% y/y growth $72M 27% 14% y/y growth
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SEGMENT INSIGHTS Revenue Operating marginOperating incomeMarine Q2 2026 • Revenue growth driven by multiple product categories • Launched the Garmin SignalTM VHF marine radio • Recently announced the next generation LiveScopeTM 2 $341M 14% y/y growth $100M 29% 59% y/y growth
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Auto OEM Q2 2026 SEGMENT INSIGHTS Revenue Operating marginOperating income • Revenue growth primarily driven by domain controllers • Achieved profitability driven by improved gross profit and lower research and development expenses • Continue to work towards the launch of our next large program with Mercedes-Benz $172M 1% y/y growth $3M 2%
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Financial Update Doug Boessen CFO and Treasurer
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Income Statement Q2 (in millions) Q2 2026 Q2 2025 Y/Y Net sales $2,022 $1,815 11% Gross profit 1,262 1,067 18% Margin % 62.4% 58.8% 360 bps Operating expenses 647 595 9% Operating income $616 $472 30% Margin % 30.4% 26.0% 440 bps GAAP EPS $2.80 $2.07 35% Pro Forma EPS $2.81 $2.17 29%
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Revenue Q2 (in millions) Q2 2026 Q2 2025 Change Americas $979 $878 12% EMEA 766 677 13% APAC 277 259 7% Total $2,022 $1,815 11% (in millions) Q2 2026 Q2 2025 Change Fitness $757 $605 25% Outdoor 483 490 (2%) Aviation 269 249 8% Marine 341 299 14% Auto OEM 172 170 1% Total $2,022 $1,815 11%
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Operating Expenses $304 $277 $0 $50 $100 $150 $200 $250 $300 $350 $400 R&D Q2 2026 Q2 2025 $343 $318 SG&A (in millions)
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Other Financial Items Q2 2026 Balance Sheet Cash Flow Taxes Cash and Marketable Securities Accounts Receivable Inventory Free Cash Flow Dividends Paid Capital Expenditures Effective Tax Rate Share Repurchases $4.37B $1.97B $1.15B $128M $276M $202M 16.8% $43M
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Guidance 2026 Revenue $8.05 billion Gross margin 59.7% Operating margin 27.0% Tax rate 16.5% EPS $10.00 All amounts and %’s are approximate.
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Appendix July 29, 2026
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Non-GAAP Financial Information To supplement our financial results presented in accordance with GAAP , this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma effective tax rate, pro forma net income (earnings) per share and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP , and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below. The tables in the subsequent slides provide reconciliations between the GAAP and non-GAAP measures. The Company’s income tax expense is occasionally impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the first half of 2026 and 2025 there were no such discrete tax items identified. Pro forma effective tax rate
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Non-GAAP Financial Information Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent comparison of the Company’s performance between periods. Pro forma net income (earnings) per share (In thousands, except per share information) June 27, June 28, June 27, June 28, 2026 2025 2026 2025 GAAP net income 541,920$ 400,822$ 946,999$ 733,591$ Foreign currency gains / losses(1) 2,492 23,512 (630) (1,248) Tax effect of foreign currency gains / losses(2) (418) (3,889) 99 195 Pro forma net income 543,994$ 420,445$ 946,468$ 732,538$ GAAP net income per share: Basic 2.81$ 2.08$ 4.91$ 3.81$ Diluted 2.80$ 2.07$ 4.89$ 3.79$ Pro forma net income per share: Basic 2.82$ 2.18$ 4.91$ 3.80$ Diluted 2.81$ 2.17$ 4.89$ 3.78$ Weighted average common shares outstanding: Basic 192,836 192,523 192,755 192,534 Diluted 193,471 193,416 193,515 193,557 (1) Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at a given legal entity. However, there is minimal cash impact from such foreign currency gains and losses. (2) The tax effect of foreign currency gains was calculated using the effective tax rates of 16.8% and 15.7% for the 13-weeks and 26-weeks ended June 27, 2026, respectively, and 16.5% and 15.6% for the 13-weeks and 26-weeks ended June 28, 2025, respectively. 13-Weeks Ended 26-Weeks Ended
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Management believes that free cash flow is an important liquidity measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property a nd equipment. Management believes that excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company’s operations and allows more accurate comparisons of the Company’s results between periods. This metric may also be useful to investors, but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is net cash provided by operating activities. Non-GAAP Financial Information Free cash flow (In thousands) June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Net cash provided by operating activities 403,556$ 173,171$ 939,544$ 593,959$ Less: purchases of property and equipment (127,778) (45,677) (194,395) (85,738) Free cash flow 275,778$ 127,494$ 745,149$ 508,221$ 13-Weeks Ended 26-Weeks Ended
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Forward-looking financial measures The forward-looking financial measures in our 2026 guidance do not consider the potential future net effect of foreign currency exchange gains and losses, certain discrete tax items and any other impacts that may be identified as pro forma adjustments in calculating the non-GAAP measures described above. The estimated impact of foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact on diluted net income per share of foreign currency gains and losses, net of tax effects, was $0.00 per share for the 26-week period ended June 27, 2026. At this time, management is unable to determine whether or not significant discrete tax items will occur in fiscal 2026, estimate the impact of any such items, or anticipate the impact of any other events that may be considered in the calculation of non- GAAP financial measures.