Garmin Ltd. (Garmin (GRMN)) shares jumped on Wednesday after the company delivered a second-quarter earnings report that was better than almost anyone expected. Revenue came in at $2.02 billion, up 11% from last year and well above the $1.90 billion analysts were looking for. Adjusted earnings were $2.81 per share, crushing the $2.25 consensus estimate.

The big story was the fitness segment, which saw revenue explode 25% year over year to $756.8 million. Garmin said growth was broad-based across all product categories, with particularly strong demand for advanced wearables. That's a nice rebound for a company that's been navigating a mixed consumer electronics environment.

Other segments were more of a mixed bag. Outdoor revenue slipped 2% to $482.7 million, hurt by declines in consumer auto and adventure watch categories. Aviation revenue rose 8% to $268.7 million, helped by growth in both OEM and aftermarket products. Marine revenue jumped 14% to $341.4 million, reflecting broad-based gains. Auto OEM revenue edged up 1% to $172.4 million, driven by domain controllers.

Margins were a highlight. Gross margin expanded to 62.4% from 58.8% a year ago, while operating margin improved to 30.4% from 26.0%. That's a big jump in profitability, and it shows Garmin is managing costs well even as it invests in growth.

Cash flow was solid too. Garmin generated $404 million in operating cash flow and $276 million in free cash flow during the quarter. The company paid $202 million in dividends and repurchased $43 million of its shares. As of June 27, it still had $448 million left under its share repurchase authorization. Shareholders also approved an annual cash dividend of $4.20 per share, payable in four equal installments. The first payment was made on June 26, and the second is scheduled for Sept. 25. Garmin ended the quarter with $4.4 billion in cash and marketable securities.

Looking ahead, Garmin raised its full-year 2026 revenue forecast to $8.05 billion from $7.90 billion, above the analyst consensus of $7.96 billion. It also boosted its adjusted EPS outlook to $10.00 from $9.35, compared with the consensus estimate of $9.55. That's a confident signal from management.

Investors clearly liked what they saw. Garmin shares were trading up 15.30% at $292.46 at the time of publication on Wednesday.