AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Shared production resources, demonstrated component redesign flexibility and costly aviation qualification support limited structural advantages. Relative cost superiority and exclusivity are unquantified.
durability · 2/4 · Resource sharing persists across filing years, while some OEM arrangements target entire production lives. Replicated features and absent firm volume commitments constrain durability.
customer dependency · 2/4 · OEM lifecycle arrangements and marine integration provide indirect evidence of attachment. Nonexclusive dealers and order-by-order OEM sales prevent a strong dependency assessment; replacement behavior is undisclosed.
erosion resilience · 2/4 · Multi-year growth and first-half 2026 results show continued commercial resilience despite actual feature replication. Outdoor weakness and continuing Auto OEM losses show uneven protection. Recent profitability also benefits from tariff refunds and cost recoveries.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · 1/4 · Disclosed product lifecycle price declines establish weak same-product pricing. Rebates, price protection and promotions further qualify pricing strength. Intended new-product and cost offsets are plans, not demonstrated sustained price increases.
retention · 2/4 · OEM production-life arrangements, integrated marine products and multi-year segment sales provide indirect evidence of continuing demand and attachment. They do not establish repeat-customer rates; outdoor launch sensitivity and absent volume commitments limit confidence.
margin resilience · 2/4 · Reported annual and interim results demonstrate profitability resilience despite lifecycle price declines. However, mix, currency, tariff refunds and Auto OEM cost recoveries support recent improvements, while first-quarter marine margins suffered from tariffs. This supports mixed resilience rather than broad demonstrated cost pass-through.
contractual freedom · — · OEM order terms and customer price-protection programs are disclosed, but price-setting authority, repricing rights and contractual restrictions cannot be established from these passages.
Predictability90
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 8.60
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 4.09
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade, interestCoverageGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- currentRatioGrade
- 100.00
- Current ratio (x)
- 3.63
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 33415.34
- 3-year average SBC / revenue (%)
- 2.14
- cashConversionGrade
- 86.70
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 3/4 · First-half 2026 operating cash flow of $939.5 million covered $194.4 million of capital expenditure, $376.0 million of cash dividends and $81.6 million of program repurchases. Liquidity reached approximately $4.4 billion and weighted-average shares changed little. Substantial noncancelable purchase obligations and undisclosed acquisition returns limit the assessment of long-term spending efficiency.
incentive alignment · 3/4 · Actual CEO compensation contains substantial equity awards. Existing awards combine three-year time vesting with performance conditions tied to unadjusted revenue and operating income. These are demonstrated arrangements, not proposed future limits; annual performance targets and incomplete ownership coverage prevent an exceptional grade.
execution · 3/4 · Reported sales increased from $5.23 billion in 2023 to $7.25 billion in 2025, followed by further first-half 2026 sales, earnings and cash-flow growth. These provide strong indirect operating evidence of execution. Outdoor weakness, Auto OEM losses and historical certification delays show material imperfections.
governance · 2/4 · Four independent directors, independent committees and executive recusal during discussions of their own compensation support oversight. The absence of a lead independent director and formal director ownership guidelines makes the structure mixed; these disclosures do not establish exceptional oversight effectiveness.
Evidence
Sharing of these resources across product lines favorably affects Garmin’s costs to produce its range of products, with lower volume products realizing the economies of scale of higher volume products.
Business / shared resources and production costs · Filed 18/02/2026
The ownership and integration of its resources allows Garmin to optimize the design for manufacturing of its products, yielding improved cost.
Business / integrated design and manufacturing · Filed 18/02/2026
Our existing practice of performing the design and manufacture of the majority of our products in-house has enabled us to source components from different suppliers and, where possible, to redesign our products to leverage lower-cost or more readily available components.
MD&A / Cost of Goods Sold and Gross Profit · Filed 18/02/2026
The Company’s segments share many common resources, infrastructures and assets in the normal course of business, and certain assets are therefore not separately tracked by segment.
Note 11 / shared segment resources · Filed 29/07/2026
Sharing of these resources across product lines favorably affects Garmin’s costs to produce its range of products, with lower volume products realizing the economies of scale of higher volume products.
Business / historical shared-resource economies · Filed 21/02/2024
Although many components essential to Garmin’s business are generally available from multiple sources, certain key components are currently obtained by the Company from single or limited sources, which subjects Garmin to supply and pricing risks.
Business / Materials / limited-source components · Filed 18/02/2026
Some of our competitors have significantly greater financial, technical and marketing resources than we do.
Risk Factors / competitor resources · Filed 18/02/2026
Additionally, existing and emerging competitors have been able to replicate certain features offered by some of our products and services or respond more rapidly to emerging technologies or changes in customer requirements.
Risk Factors / realized feature replication · Filed 18/02/2026
The consolidated gross margin increase was primarily attributable to favorable product mix within certain segments and a favorable 100 basis point impact related to approximately $21 million in refunds of previously paid tariffs, of which approximately $14 million was attributable to marine.
MD&A / second-quarter gross margin drivers · Filed 29/07/2026
Federal Aviation Administration (FAA) certification is required for all of our aviation products that are intended for installation in type-certificated aircraft.
Risk Factors / aviation product certification · Filed 21/02/2024
To the extent required, certification is an expensive and time-consuming process that requires significant focus and resources.
Risk Factors / certification cost and time · Filed 21/02/2024
Certain arrangements with OEM customers are entered into at the beginning of an aircraft, boat, or vehicle life cycle with the intent to fulfill customer purchasing requirements for the entire production life, although there are generally no firm volume commitments, and sales are therefore generated on an order-by-order basis.
MD&A / OEM production-life arrangements and order commitments · Filed 18/02/2026
Fitness Outdoor Aviation Marine Auto OEM Total 52-Weeks Ended December 27, 2025 Net sales $ 2,357,000 $ 2,054,061 $ 987,161 $ 1,182,615 $ 664,682 $ 7,245,519 Cost of goods sold 954,415 702,831 245,654 532,708 553,608 2,989,216 Gross profit 1,402,585 1,351,230 741,507 649,907 111,074 4,256,303 Research and development expense 216,956 270,084 342,282 187,610 109,299 1,126,231 Selling, general and administrative expenses 459,748 390,794 141,998 211,047 50,409 1,253,996 Operating income (loss) 725,881 690,352 257,227 251,250 (48,634 ) 1,876,076 52-Weeks Ended December 28, 2024 Net sales $ 1,774,487 $ 1,961,990 $ 876,614 $ 1,073,192 $ 610,620 $ 6,296,903 Cost of goods sold 742,480 655,585 220,105 479,065 503,113 2,600,348 Gross profit 1,032,007 1,306,405 656,509 594,127 107,507 3,696,555 Research and development expense 182,900 239,208 316,371 160,615 94,507 993,601 Selling, general and administrative expenses 366,435 364,467 128,771 197,502 51,785 1,108,960 Operating income (loss) 482,672 702,730 211,367 236,010 (38,785 ) 1,593,994 52-Weeks Ended December 30, 2023 Net sales $ 1,344,637 $ 1,697,151 $ 846,329 $ 916,911 $ 423,224 $ 5,228,252 Cost of goods sold 627,731 624,290 220,341 425,650 325,285 2,223,297 Gross profit 716,906 1,072,861 625,988 491,261 97,939 3,004,955 Research and development expense 163,148 215,555 284,014 137,342 104,637 904,696 Selling, general and administrative expenses 321,557 342,052 115,574 174,490 54,426 1,008,099 Operating income (loss) 232,201 515,254 226,400 179,429 (61,124 ) 1,092,160 Net sales to external customers, property and equipment, and net assets by geographic area are as shown below for the fiscal years ended December 27, 2025, December 28, 2024, and December 30, 2023.
Note 11 / fiscal 2023–2025 segment operating results · Filed 18/02/2026
15 Fitness Outdoor Aviation Marine Auto OEM Total 13-Weeks Ended June 27, 2026 Net sales $ 756,823 $ 482,740 $ 268,749 $ 341,369 $ 172,411 $ 2,022,092 Cost of goods sold 276,100 150,421 66,778 132,405 134,366 760,070 Gross profit 480,723 332,319 201,971 208,964 38,045 1,262,022 Research and development expense 64,361 74,198 91,290 51,089 23,002 303,940 Selling, general and administrative expenses 139,323 94,538 38,515 58,027 12,171 342,574 Operating income (loss) $ 277,039 $ 163,583 $ 72,166 $ 99,848 $ 2,872 $ 615,508 13-Weeks Ended June 28, 2025 Net sales $ 605,425 $ 490,357 $ 249,366 $ 299,262 $ 170,154 $ 1,814,564 Cost of goods sold 240,755 165,928 63,894 134,924 142,051 747,552 Gross profit 364,670 324,429 185,472 164,338 28,103 1,067,012 Research and development expense 52,696 66,997 85,126 46,920 24,924 276,663 Selling, general and administrative expenses 114,344 99,551 36,963 54,497 12,699 318,054 Operating income (loss) $ 197,630 $ 157,881 $ 63,383 $ 62,921 $ (9,520 ) $ 472,295 26-Weeks Ended June 27, 2026 Net sales $ 1,303,646 $ 900,270 $ 532,590 $ 696,385 $ 342,691 $ 3,775,582 Cost of goods sold 484,400 290,009 133,311 290,045 273,507 1,471,272 Gross profit 819,246 610,261 399,279 406,340 69,184 2,304,310 Research and development expense 126,666 144,494 180,750 100,040 47,808 599,758 Selling, general and administrative expenses 257,921 183,394 75,429 115,694 24,941 657,379 Operating income (loss) $ 434,659 $ 282,373 $ 143,100 $ 190,606 $ (3,565 ) $ 1,047,173 26-Weeks Ended June 28, 2025 Net sales $ 990,147 $ 928,853 $ 472,481 $ 618,699 $ 339,483 $ 3,349,663 Cost of goods sold 405,334 321,889 119,107 270,428 281,348 1,398,106 Gross profit 584,813 606,964 353,374 348,271 58,135 1,951,557 Research and development expense 103,153 130,060 169,324 90,907 51,339 544,783 Selling, general and administrative expenses 206,316 190,236 72,311 107,579 25,213 601,655 Operating income (loss) $ 275,344 $ 286,668 $ 111,739 $ 149,785 $ (18,417 ) $ 805,119 Net sales to external customers by geographic region for the 13-week and 26-week periods ended June 27, 2026 and June 28, 2025 are presented below.
Note 11 / second-quarter and first-half 2026 segment results · Filed 29/07/2026
Delays in our obtaining certification for our aviation products have resulted and may in the future result in our being required to pay compensation to our customers.
Risk Factors / historical certification delays and compensation · Filed 21/02/2024
Some of our original equipment manufacturer (OEM) customers may develop in-house equipment and components that they currently purchase from us.
Risk Factors / potential OEM insourcing · Filed 18/02/2026
The Force product line also connects wirelessly to Garmin chartplotters/MFDs to provide navigation, autopilot, and anchor lock integration.
Business / marine product integration · Filed 18/02/2026
In particular, the average selling prices of a specific product tend to decrease over that product’s life.
Risk Factors / product lifecycle selling-price declines · Filed 18/02/2026
To offset such decreases, we intend to rely primarily on component cost reduction, obtaining yield improvements and corresponding cost reductions in the manufacturing of existing products and on introducing new products that incorporate advanced features and therefore can be sold at higher average selling prices.
Risk Factors / intended offsets to price declines · Filed 18/02/2026
The Company records estimated reductions to revenue in the form of variable consideration for returns and customer sales programs including rebates, price protection, promotions, and other volume-based incentives.
Revenue accounting / rebates, price protection and promotions · Filed 19/02/2025
The marine gross margin percentage decrease of 200 basis points when compared to the year-ago quarter was primarily attributable to higher tariff costs.
MD&A / first-quarter marine tariff impact · Filed 29/04/2026
Consolidated gross margin as a percent of net sales increased 180 basis points when compared to the year-ago quarter, primarily due to favorable foreign currency impacts on sales.
MD&A / first-quarter consolidated gross margin drivers · Filed 29/04/2026
The auto OEM gross margin percentage increase of 560 basis points when compared to the year-ago quarter was primarily attributable to year-to-date cost recoveries recognized as revenue during the current quarter.
MD&A / Auto OEM cost recoveries · Filed 29/07/2026
Many of our dealers and distributors also sell products offered by our competitors.
Risk Factors / nonexclusive dealers and distributors · Filed 18/02/2026
and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) 26-Weeks Ended June 27, 2026 June 28, 2025 Operating Activities: Net income $ 946,999 $ 733,591 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 81,270 75,980 Amortization 16,711 17,423 Loss on sale or disposal of property and equipment 55 350 Unrealized foreign currency losses (gains) 2,575 (16,566 ) Deferred income taxes 3,418 (49,754 ) Stock compensation expense 88,793 82,279 Realized loss on marketable securities 597 706 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable, net of allowance for doubtful accounts 84,187 17,902 Inventories (209,361 ) (206,276 ) Other current and noncurrent assets (44,687 ) (37,092 ) Accounts payable 59,547 (2,591 ) Other current and noncurrent liabilities (68,307 ) 2,408 Deferred revenue 1,187 (6,843 ) Deferred costs 4,310 7,262 Income taxes (27,750 ) (24,820 ) Net cash provided by operating activities 939,544 593,959 Investing activities: Purchases of property and equipment (194,395 ) (85,738 ) Purchase of marketable securities (510,525 ) (465,372 ) Redemption of marketable securities 311,308 306,469 Net payments for acquisitions (2,993 ) (1,973 ) Other investing activities, net (68 ) 503 Net cash used in investing activities (396,673 ) (246,111 ) Financing activities: Dividends (376,045 ) (317,748 ) Proceeds from issuance of treasury shares related to equity awards 31,442 29,065 Purchase of treasury shares related to equity awards (47,063 ) (33,431 ) Purchase of treasury shares under share repurchase plan (81,581 ) (93,632 ) Net cash used in financing activities (473,247 ) (415,746 ) Effect of exchange rate changes on cash and cash equivalents (14,014 ) 60,650 Net increase (decrease) in cash, cash equivalents, and restricted cash 55,610 (7,248 ) Cash, cash equivalents, and restricted cash at beginning of period 2,279,360 2,080,154 Cash, cash equivalents, and restricted cash at end of period $ 2,334,970 $ 2,072,906 See accompanying notes.
Condensed consolidated cash flows / first half 2026 · Filed 29/07/2026
As of June 27, 2026, we had approximately $4.4 billion of cash, cash equivalents and marketable securities.
Liquidity / June 27, 2026 cash and marketable securities · Filed 29/07/2026
As of June 27, 2026, the Company had inventory purchase obligations of $1,533.7 million, with $1,170.1 million payable within 12 months.
Liquidity / inventory purchase obligations · Filed 29/07/2026
As of June 27, 2026, the Company had other purchase obligations of $540.4 million, with $277.9 million payable within 12 months.
Liquidity / other purchase obligations · Filed 29/07/2026
and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share information) 13-Weeks Ended 26-Weeks Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Net sales $ 2,022,092 $ 1,814,564 $ 3,775,582 $ 3,349,663 Cost of goods sold 760,070 747,552 1,471,272 1,398,106 Gross profit 1,262,022 1,067,012 2,304,310 1,951,557 Research and development expense 303,940 276,663 599,758 544,783 Selling, general and administrative expenses 342,574 318,054 657,379 601,655 Total operating expense 646,514 594,717 1,257,137 1,146,438 Operating income 615,508 472,295 1,047,173 805,119 Other income (expense): Interest income 38,173 31,724 74,147 62,231 Foreign currency (losses) gains (2,492 ) (23,512 ) 630 1,248 Other (expense) income (128 ) (256 ) 1,640 730 Total other income (expense) 35,553 7,956 76,417 64,209 Income before income taxes 651,061 480,251 1,123,590 869,328 Income tax provision 109,141 79,429 176,591 135,737 Net income $ 541,920 $ 400,822 $ 946,999 $ 733,591 Net income per share: Basic $ 2.81 $ 2.08 $ 4.91 $ 3.81 Diluted $ 2.80 $ 2.07 $ 4.89 $ 3.79 Weighted average common shares outstanding: Basic 192,836 192,523 192,755 192,534 Diluted 193,471 193,416 193,515 193,557 See accompanying notes.
Condensed consolidated income statements / earnings and weighted-average shares · Filed 29/07/2026
Time-Based Vesting Restricted Stock Units Executive Management members are granted awards in the form of full value restricted stock units (“RSUs”) under the Company’s 2005 Equity Incentive Plan that, unless forfeited, vest over a three-year period.
Compensation report / existing time-based RSU awards · Filed 22/04/2026
The initial vesting of these awards is solely contingent upon the achievement of certain fiscal year revenue and profitability targets established by the Compensation Committee, and thereafter the remaining unvested shares are subject to time-based vesting requirements (“PC-RSUs”).
Compensation report / performance-contingent award conditions · Filed 22/04/2026
For 2025 and 2024 these targets were the Company’s operating income and revenue, which are derived from Garmin’s audited financial statements, without any adjustments.
Compensation report / 2024 and 2025 unadjusted performance measures · Filed 22/04/2026
To calculate CAP for our PEO, the following amounts were deducted from and added to Summary Compensation Table (“SCT”) total compensation, as required under Item 402(v) of Regulation S-K: Year SCT Total Deduction of Reported Value of Equity Awards Equity Award Adjustments CAP (i) (ii) 2025 $ 7,744,354 $ (6,300,085 ) $ 6,344,143 $ 7,788,412 2024 $ 7,240,905 $ (5,800,074 ) $ 16,614,987 $ 18,055,818 2023 $ 6,540,666 $ (5,150,023 ) $ 9,288,510 $ 10,679,153 2022 $ 4,585,595 $ (3,323,452 ) $ (361,257 ) $ 900,886 2021 $ 4,238,341 $ (3,003,686 ) $ 4,732,426 $ 5,967,081 (i) Represents the grant date fair value of equity based awards granted for each year shown, as reported in the SCT.
Pay versus performance / actual CEO compensation and equity awards · Filed 22/04/2026
Following its most recent review, the Board determined that not having a lead independent director continues to best serve the Board’s ability to carry out its roles and responsibilities because, given the size of the Board, not having a lead independent director encourages and enables all four of the independent directors to play an active role on the Board.
Governance / four independent directors and absence of lead independent director · Filed 22/04/2026
The Board has determined that all members of each of these committees are independent
Governance / committee independence · Filed 22/04/2026
Garmin does not have formal stock ownership guidelines for its directors.
Director compensation / absence of formal director ownership guidelines · Filed 22/04/2026
Mr. Pemble and Dr. Kao are not present for certain portions of Compensation Committee meetings, such as when the Compensation Committee discusses their own respective performance and compensation.
Compensation governance / executive recusal · Filed 22/04/2026
Outdoor revenue decreased primarily due to the adventure watch product category comparing against a strong prior year product launch.
MD&A / outdoor revenue decline and prior-year launch comparison · Filed 29/04/2026
