Financial Analysis

8. Commitments and Contingencies Commitments The Company is party to certain commitments that require the future purchase of goods or services (unconditional purchase obligations). The Companys unconditional purchase obligations primarily consist of payments for inventory, capital expenditures, and other indirect purchases in connection with conducting its business. The aggregate amount of purchase orders and other commitments open as of June 27, 2026 that may represent noncancelable unconditional purchase obligations having a remaining term in excess of one year was approximately $ 589,000 . Certain cash balances are held as collateral in relation to bank guarantees. This restricted cash is reported within other assets on the condensed consolidated balance sheets and totaled $ 735 and $ 714 as of June 27, 2026 and December 27, 2025, respectively. The total of the cash and cash equivalents balance and the restricted cash reported within other assets in the condensed consolidated balance sheets equals the total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows. Contingencies Management of the Company currently does not believe it is reasonably possible that the Company may have incurred a material loss, or a material loss in excess of recorded accruals, with respect to loss contingencies in the aggregate, for the fiscal quarter ended June 27, 2026. The results of legal proceedings, investigations and claims, however, canno …

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Revenue disaggregated by pattern of recognition, based on the timing of transfer of the goods or services, is presented in the table below: 13-Weeks Ended 26-Weeks Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Point in time $ 1,938,804 $ 1,731,996 $ 3,607,942 $ 3,185,350 Over time 83,288 82,568 167,640 164,313 Net sales $ 2,022,092 $ 1,814,564 $ 3,775,582 $ 3,349,663

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5. Income Taxes The Company recorded income tax expense of $ 109,141 in the 13-week period ended June 27, 2026, compared to income tax expense of $ 79,429 in the 13-week period ended June 28, 2025. The effective tax rate was 16.8 % in the second quarter of 2026, compared to 16.5 % in the second quarter of 2025. The increase in effective tax rate between comparative periods was primarily due to changes in income mix by jurisdiction. The Company recorded income tax expense of $ 176,591 in the 26-week period ended June 27, 2026, compared to income tax expense of $ 135,737 in the 26-week period ended June 28, 2025. The effective tax rate was 15.7 % in the first half of 2026, compared to 15.6 % in the first half of 2025. The increase in effective tax rate between comparative periods was primarily due to changes in income mix by jurisdiction.

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"Recently Adopted Accounting Standards There are no recently adopted accounting standards that have a material impact on the Company's consolidated financial statements, accounting policies, processes, or systems. Recently Issued Accounting Pronouncements Not Yet Adopted Disaggregation of Income Statement Expenses In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (""ASU 2024-03""), which requires additional disaggregated disclosures in the notes to financial statements for certain categories of expenses that are included in the expense captions on the face of the statements of income, on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments may be applied using either a prospective or retrospective approach. The Company is currently evaluating the impact that the updated standard will have on its financial statement disclosures."

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2. Revenue To further depict how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors, Garmin disaggregates revenue (or net sales) by geographic region, major product category, and pattern of recognition. Disaggregated revenue by geographic region (Americas, EMEA, and APAC) is presented in Note 11 Segment Information and Geographic Data. Note 11 also contains disaggregated revenue information of the five major product categories identified by the Company (fitness, outdoor, aviation, marine, and auto OEM), which also represent the Companys operating segments. A large majority of the Companys revenue is recognized on a point in time basis, usually once the product is shipped and title and risk of loss have transferred to the customer. Revenue recognized over time relates to performance obligations that are satisfied over the estimated life of the product or contractual service period and is primarily within the outdoor and aviation segments, and, to a lesser extent, within the auto OEM, fitness, and marine segments. Revenue disaggregated by pattern of recognition, based on the timing of transfer of the goods or services, is presented in the table below: 13-Weeks Ended 26-Weeks Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Point in time $ 1,938,804 $ 1,731,996 $ 3,607,942 $ 3,185,350 Over time 83,288 82,568 167,640 164,313 Net sales $ 2,022,092 $ 1,814,564 $ 3,775,582 $ 3,349,663 Transaction price and …

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11. Segment Information and Geographic Data Garmin is organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM, which represent the primary markets served by the Company. These operating segments are also the Company's reportable segments. The Companys Chief Executive Officer, who has been identified as the Chief Operating Decision Maker (CODM), uses operating income (loss) as the primary measure of profit or loss to assess segment performance. Operating income (loss) represents net sales less costs of goods sold and operating expenses. Net sales are directly attributed to each segment. Most costs of goods sold and the majority of operating expenses are also directly attributed to each segment, while certain other costs of goods sold and operating expenses are allocated to the segments in a reasonable manner considering the specific facts and circumstances of the costs or expenses being allocated. The accounting policies of the segments are the same as those described in Note 1 - Accounting Policies. There are no inter-segment sales or transfers. The Companys segments share many common resources, infrastructures and assets in the normal course of business, and certain assets are therefore not separately tracked by segment. Thus, the Company does not report accounts receivable, inventories, property and equipment, intangible assets, capital expenditures, depreciation expense, or amortization expense by segment to the CODM. The CODM utilizes …

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Significant Accounting Policies For a description of the significant accounting policies and methods used in the preparation of the Companys condensed consolidated financial statements, refer to Note 1 Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements in Part II, Item 8 of the Companys Annual Report on Form 10-K for the fiscal year ended December 27, 2025. There were no material changes to the Companys significant accounting policies during the 26-week period ended June 27, 2026 . …

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9. Stockholders' Equity Dividends Under Swiss corporate law, dividends must be approved by shareholders at the annual general meeting of the Companys shareholders. Approved dividends are payable in four equal installments on dates determined by the Board of Directors. A reduction of retained earnings and a corresponding liability are recorded at the time of shareholder approval and are periodically adjusted based on the number of applicable shares outstanding. The Company's shareholders approved the following dividends: Approval Date Dividend Payment Date Record Date Dividend Per Share Fiscal 2026 June 5, 2026 June 26, 2026 June 15, 2026 $ 1.05 June 5, 2026 September 25, 2026 September 11, 2026 $ 1.05 June 5, 2026 December 24, 2026 December 11, 2026 $ 1.05 June 5, 2026 March 26, 2027 March 12, 2027 $ 1.05 Total $ 4.20 Fiscal 2025 June 6, 2025 June 27, 2025 June 16, 2025 $ 0.90 June 6, 2025 September 26, 2025 September 12, 2025 $ 0.90 June 6, 2025 December 26, 2025 December 12, 2025 $ 0.90 June 6, 2025 March 27, 2026 March 13, 2026 $ 0.90 Total $ 3.60 Fiscal 2024 June 7, 2024 June 28, 2024 June 17, 2024 $ 0.75 June 7, 2024 September 27, 2024 September 13, 2024 $ 0.75 June 7, 2024 December 27, 2024 December 13, 2024 $ 0.75 June 7, 2024 March 28, 2025 March 14, 2025 $ 0.75 Total $ 3.00 Share Repurchase Program On February 16, 2024, the Board of Directors approved a share repurchase program (the 2024 Program) authorizing the Company to repurchase up to $ 300,000 of the common sha …

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12. Subsequent Events On July 20, 2026 the Company acquired TrainingPeaks and TrainHeroic, leading training platforms for athletes and coaches. The effect of this acquisition was not material to the Company s consolidated financial statements. …

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