Garmin has published its financial results for the second quarter of 2026. The report contains plenty of accounting language, but it also reveals where Garmin is growing, which products are driving its business, and how the company’s fitness strategy is changing.
Here are 10 of the most interesting takeaways for users of Garmin watches, cycling computers, and fitness trackers.
1. Garmin’s fitness business grew by 25%
Garmin generated approximately $757 million in Fitness revenue during the quarter, up from $605 million a year earlier.
Garmin said every Fitness product category grew, with advanced wearables leading the increase. The Fitness segment includes sports watches, cycling computers, and other training-related devices.
2. Fitness produced almost three quarters of Garmin’s total growth
Garmin’s overall quarterly revenue increased by approximately $208 million. More than $151 million of that increase came from the Fitness segment.
In other words, Fitness devices accounted for roughly 73% of Garmin’s total revenue growth during the quarter. Aviation, marine electronics, outdoor products, and automotive systems contributed far less combined.
3. Fitness is now one of Garmin’s most profitable businesses
The Fitness segment generated $277 million in operating profit, an increase of 40% compared with the same quarter last year.
Its operating margin reached 37%. In simplified terms, Garmin retained about $37 in operating profit for every $100 of Fitness revenue after the segment’s operating costs.
That is an unusually high margin for a business selling physical consumer devices.
4. Garmin is becoming better at selling premium devices
Fitness revenue increased by 25%, but operating profit increased by 40%. Profit is therefore growing much faster than sales.
This suggests that customers are buying more expensive products, Garmin is earning more from each sale, or both. Garmin specifically identified strong demand for advanced wearables as one of the main drivers.
5. CIRQA did not cause the current growth
Garmin highlighted the new CIRQA smart band in its report, but CIRQA was announced after the reporting quarter had already ended.
This means Garmin achieved its 25% Fitness growth almost entirely without CIRQA. The band should instead be viewed as a product intended to support future growth and reach people who want sleep, recovery, and wellness tracking without wearing a smartwatch.
6. Garmin is positioning CIRQA as a subscription-free alternative
Garmin specifically noted that CIRQA provides fitness and wellness insights without requiring a subscription.
That wording appears designed to differentiate CIRQA from Whoop and other services that require users to continue paying after receiving the device. Garmin believes the subscription-free model can expand the market for its wellness products.
7. Sales of adventure watches declined
Garmin’s Outdoor segment recorded a 2% decline in revenue. The company said weaker consumer automotive products and adventure watches were responsible for the decrease.
That creates an interesting contrast:
- Garmin’s broader Fitness wearables are growing rapidly.
- Its adventure-watch category is currently shrinking.
Some customers may be moving toward more versatile AMOLED sports watches. Another possibility is that buyers are waiting for updated Outdoor products. Garmin expects stronger performance during the second half of the year because of upcoming product launches.
8. Garmin has acquired TrainingPeaks and TrainHeroic
Garmin completed the acquisition of two established training platforms:
- TrainingPeaks, primarily focused on endurance athletes and coaches
- TrainHeroic, with a stronger focus on strength and performance training
Garmin says it wants to grow its services business and strengthen the connection between athletes, coaches, and structured training plans.
For users, this may eventually matter more than another watch release. Garmin now owns a major platform for coaching, workout planning, training-load analysis, and long-term athlete development.
9. Garmin continues to spend heavily on research and development
Garmin spent approximately $304 million on research and development during the quarter, 10% more than a year earlier.
That equals roughly 15% of the company’s total revenue. Garmin is not simply increasing prices and selling existing hardware. It continues to invest heavily in sensors, algorithms, software, aviation systems, and new consumer devices.
10. Garmin expects a record year, although margins should cool down
Garmin raised its full-year 2026 forecast to:
- Approximately $8.05 billion in revenue
- A 27% operating margin
- Approximately $10 in earnings per share
The company’s operating margin was higher in the second quarter at 30.4%, but Garmin expects some decline during the second half of the year. It cited rising memory costs and the absence of another tariff refund as factors affecting future profitability.
What this means for Garmin users
Garmin’s current growth is being driven primarily by fitness and sports devices. The company is successfully selling more premium wearables while expanding its ecosystem in two directions:
- Screenless wellness devices such as CIRQA
- Training and coaching services through TrainingPeaks and TrainHeroic
Garmin is gradually becoming more than a manufacturer of watches and cycling computers. It is building a broader platform covering training, recovery, coaching, and everyday health tracking.
