How does Garmin (GRMN) make money?

Garmin (GRMN) generates revenue primarily from Fitness, which accounted for 33.8% of total revenue in TTM through Q1 2026. The company reported $7.46B in revenue and converted 23.3% of it into net profit, equivalent to roughly $1.74B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Garmin (GRMN)?

Garmin (GRMN) reported a gross profit margin of 59.1% in TTM through Q1 2026, equivalent to $4.41B in gross profit on $7.46B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Garmin (GRMN)?

Garmin (GRMN) reported an operating profit margin of 26.5% in TTM through Q1 2026, equivalent to $1.97B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Garmin (GRMN)?

Garmin (GRMN) reported a net profit margin of 23.3% in TTM through Q1 2026, equivalent to $1.74B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Garmin (GRMN) profitable?

Yes. Garmin (GRMN) reported $1.74B in net income for TTM through Q1 2026, with a net profit margin of 23.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Garmin (GRMN) invest in research and development?

Garmin (GRMN) invested $1.15B in research and development during TTM through Q1 2026, roughly 15.5% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Garmin (GRMN) spend on capital expenditures?

Garmin (GRMN) spent $297.00M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 4.0% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Garmin (GRMN) generate?

Garmin (GRMN) generated $1.45B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 19.4%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Garmin (GRMN)?

Garmin (GRMN) had an effective tax rate of 17.2% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Garmin (GRMN)?

Garmin (GRMN) reports revenue across 5 reportable product segments, led by Fitness at 33.8% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Garmin (GRMN) generate most of its revenue?

Americas is the largest geographic market for Garmin (GRMN), accounting for 47.3% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Garmin Makes Money: 2026 Visual Revenue Map

Garmin (GRMN) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 28, 2026 (reported April 29, 2026).

Garmin (GRMN) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Garmin (GRMN) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Fitness	$2.52B	33.8%
Outdoor	$2.03B	27.2%
Marine Segment	$1.22B	16.3%
Aviation	$1.03B	13.8%
Automotive Mobile	$665.63M	8.9%
Total	$7.46B	100%

Fitness$2.52B
Outdoor$2.03B
Marine Segment$1.22B
Aviation$1.03B
Automotive Mobile$665.63M
Total$7.46B

Garmin (GRMN) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Garmin (GRMN), TTM through Q1 2026
Region	Revenue (USD)	% of total
Americas	$3.53B	47.3%
EMEA	$2.83B	37.9%
Asia Pacific	$1.10B	14.8%
Total	$7.46B	100%

Americas
EMEA
Asia Pacific
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Garmin (GRMN) reports revenue across 5 operating segments; the largest segment was Fitness at 33.8%, followed by Outdoor (27.2%) and Marine Segment (16.3%). Separately, by end-market geography, Americas accounted for 47.3% of revenue, followed by EMEA (37.9%) and Asia Pacific (14.8%).

Frequently asked questions

Data & methodology

Garmin (GRMN) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation