What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-04-29 compared with 2025-10-29 · 68 added, 174 removed, 100 unchanged (71% of the section changed)

13 unchanged sentences

The Company is a leading worldwide provider of wireless devices, many of which feature location technology such as Global Positioning System (GPS), and applications that are designed for people who live an active lifestyle.

We are organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM, which represent the primary markets served by the Company.

We design, develop, manufacture, market, and distribute a diverse family of GPS-enabled products and other navigation, communications, sensor-based and information products for these markets, as well as products installed by original equipment manufacturers (OEMs) and for aftermarket applications.

Our products are sold through a variety of indirect distribution channels, including a large worldwide network of independent retailers, dealers, distributors, installation and repair shops, and OEMs.

We also sell our products and services directly through our online webshop (garmin.com), subscriptions for connected services, and our own retail stores.

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.

Garmin designs, develops, manufactures, markets, and distributes a diverse family of GPS-enabled products and other navigation, communications, sensor-based and information products and services for these markets, as well as products installed by original equipment manufacturers (OEMs) and for aftermarket applications.

Garmin products are sold through a variety of indirect distribution channels, including a large worldwide network of independent retailers, dealers, distributors, installation and repair shops, and OEMs.

Garmin also sells its products and services directly through the Garmin online webshop (garmin.com), subscriptions for connected services, and Garmin retail stores.

Business Environment Update

Global economic and geopolitical conditions impact our operations and financial results, although we believe our vertically integrated and diversified business model enables us to be resilient and flexible in a dynamic business environment.

Foreign currency fluctuations and rapidly changing global trade policies, particularly those affecting the United States, increase the economic and operational uncertainties that could significantly harm our business and results of operations.

Foreign currency fluctuations and rapidly changing global trade policies, particularly those affecting the United States (“U.S.”), increase the economic and operational uncertainties that could significantly impact our business and results of operations.

On February 20, 2026, the U.S.

Supreme Court ruled that the tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were unauthorized.

As of March 28, 2026, we had not recognized a benefit or receivable related to any potential refund related to previously paid IEEPA tariffs.

Refer to Part II, Item 1A, “Risk Factors” of this Quarterly Report for further discussion of the risks and uncertainties facing our Company.

Results of Operations

The following tables and discussion provides an analysis of our results of operations for the third quarter of 2025 compared to the third quarter of 2024.

Comparison of 13-Weeks Ended September 27, 2025 and September 28, 2024

The following tables and discussion provides an analysis of our results of operations for the first quarter of 2026 compared to the first quarter of 2025.

Comparison of 13-Weeks Ended March 28, 2026 and March 29, 2025

13-Weeks Ended

September 27, 2025

March 28, 2026

Year-over-Year Change

13-Weeks Ended

September 28, 2024

March 29, 2025

Percentage of Total Net Sales

3 unchanged sentences

Percentage of Total Net Sales

Net sales increased 12% for the 13-week period ended September 27, 2025 when compared to the year-ago quarter.

Total unit sales in the third quarter of 2025 increased by approximately 8% to 4,982 when compared to total unit sales of 4,620 in the third quarter of 2024, which differs from the percent increase in revenue primarily due to shifts in segment and product mix.

Fitness was the largest portion of our revenue mix in the third quarter of 2025 at 34%, while outdoor was the largest portion of our revenue mix in the third quarter of 2024 at 33%.

The increase in fitness revenue was driven by strong demand for advanced wearables.

Net sales (or “revenue”) increased 14% for the 13-week period ended March 28, 2026 when compared to the year-ago quarter.

Total unit sales in the first quarter of 2026 increased by approximately 9% to 4,765 when compared to total unit sales of 4,362 in the first quarter of 2025, which differs from the percent increase in revenue primarily due to shifts in segment and product mix.

Fitness was the largest portion of our revenue mix in the first quarter of 2026 at 31%, while outdoor was the largest portion of our revenue mix in the first quarter of 2025 at 29%.

The increase in fitness revenue was driven by growth across all product categories, led by strong demand for advanced wearables.

The increase in aviation revenue was driven by sales growth in OEM and aftermarket product categories.

The increase in marine revenue was driven by sales growth across multiple product categories.

Outdoor revenue decreased primarily due to consumer auto and adventure watch product categories comparing against strong prior year product launch cycles.

Auto OEM revenue decreased as certain legacy programs approach end-of-life and were partially offset by growth in a recent domain controller program.

The increase in auto OEM revenue was primarily driven by growth in infotainment programs.

Outdoor revenue decreased primarily due to the adventure watch product category comparing against a strong prior year product launch.

13-Weeks Ended

September 27, 2025

March 28, 2026

Year-over-Year Change

13-Weeks Ended

September 28, 2024

March 29, 2025

Percentage of Segment Net Sales

4 unchanged sentences

Percentage of Total Net Sales

Gross profit dollars in the third quarter of 2025 increased 10%, primarily due to the increase in net sales when compared to the year-ago quarter, as described above.

Consolidated gross margin as a percent of net sales decreased 90 basis points when compared to the year-ago quarter, primarily due to higher product costs.

Gross margin percentage remained relatively flat within the fitness, aviation, and marine segments when compared to the year-ago quarter.

The outdoor gross margin percentage decrease of 190 basis points was primarily attributable to higher product costs.

The auto OEM gross margin percentage decrease of 440 basis points was primarily attributable to an increase in accrued warranty costs associated with prior period sales.

Gross profit dollars in the first quarter of 2026 increased 18%, primarily due to the increase in net sales when compared to the year-ago quarter, as described above.

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.

The fitness and outdoor gross margin percentage increases of 470 basis points and 210 basis points, respectively, were primarily attributable to favorable foreign currency impacts on sales when compared to the year-ago quarter.

Gross margin remained relatively flat within the aviation and auto OEM segments when compared to the year-ago quarter.

The marine gross margin percentage decrease of 200 basis points when compared to the year-ago quarter was primarily attributable to higher tariff costs.

Operating Expense

1 unchanged sentence

13-Weeks Ended

September 27, 2025

March 28, 2026

Year-over-Year Change

13-Weeks Ended

September 28, 2024

March 29, 2025

Research and development expense

3 unchanged sentences

Percentage of Total Net Sales

Total operating expense in the third quarter of 2025 increased 15% in absolute dollars and was relatively flat as a percent of revenue when compared to the year-ago quarter.

Operating expense, as a percent of segment net sales, decreased in the fitness, aviation, and marine segments by 110 basis points, 380 basis points, and 100 basis points, respectively, when compared to the year-ago quarter due to increased sales and greater leverage of expenses.

Operating expense, as a percent of segment net sales, increased in the outdoor and auto OEM segments by 370 basis points and 490 basis points, respectively, when compared to the year-ago quarter due to decreased sales while expenses increased.

Total operating expense in the first quarter of 2026 increased 11% in absolute dollars and decreased 110 basis points as a percent of revenue when compared to the year-ago quarter.

Operating expense, as a percent of segment net sales, decreased in the fitness, aviation, and auto OEM segments by 390 basis points, 570 basis points, and 90 basis points, respectively, when compared to the year-ago quarter primarily due to increased sales and greater leverage of expenses.

Operating expense, as a percent of segment net sales, remained relatively flat in the marine segment when compared to the year-ago quarter.

Operating expense, as a percent of segment net sales, increased in the outdoor segment by 300 basis points when compared to the year-ago quarter as decreased sales and increased expenses were partially offset by improved gross margin percentage.

Research and development expense increased 10% in absolute dollars when compared to the year-ago quarter.

5 unchanged sentences

13-Weeks Ended

September 27, 2025

March 28, 2026

Year-over-Year Change

13-Weeks Ended

September 28, 2024

March 29, 2025

Percentage of Segment Net Sales

5 unchanged sentences

NM - Represents that the percentage change is not meaningful.

Total operating income in the third quarter of 2025 increased 4% in absolute dollars and decreased 180 basis points as a percent of revenue when compared to the year-ago quarter.

The improved operating income dollar performance in fitness, aviation, and marine was partially offset by decreases in outdoor and auto OEM.

Total operating income in the first quarter of 2026 increased 30% in absolute dollars and increased 290 basis points as a percent of revenue when compared to the year-ago quarter.

The increase in operating income as a percent of revenue was driven by increased sales, gross margin improvements and lower operating expenses as a percent of revenue, as described above.

The improved operating income dollar performance in fitness, aviation, marine and auto OEM was partially offset by the decrease in outdoor.

Other Income (Expense)

1 unchanged sentence

13-Weeks Ended

September 27, 2025

March 28, 2026

13-Weeks Ended

September 28, 2024

March 29, 2025

Interest income

Foreign currency gains

The average interest rate return on cash and investments during the third quarter of 2025 was 3.3%, and remained relatively flat compared to 3.3% during the same quarter of 2024.

The average interest rate return on cash and investments during the first quarter of 2026 was 3.3%, compared to 3.2% during the same quarter of 2025.

Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S.

1 unchanged sentence

Dollar is the functional currency of Garmin (Europe) Ltd., although some transactions and balances are denominated in British Pounds.

Other notable currency exposures include the Australian Dollar and Polish Zloty.

The majority of the Company’s consolidated foreign currency gain or loss is typically driven by the significant cash and marketable securities, receivables and payables held in a currency other than the functional currency at a given legal entity.

The $20.3 million currency gain recognized in the third quarter of 2025 was primarily due to the U.S.

Dollar strengthening against the Taiwan Dollar, partially offset by the U.S.

Dollar strengthening against the Euro, Polish Zloty, and British Pound Sterling, within the 13-week period ended September 27, 2025.

During this period, the U.S.

Dollar strengthened 4.5% against the Taiwan Dollar, resulting in a gain of $26.5 million, while the U.S.

Dollar strengthened 0.2% against the Euro, 1.0% against the Polish Zloty, and 2.3% against the British Pound Sterling, resulting in losses of $2.6 million, $2.2 million, and $1.6 million, respectively.

The remaining net currency gain of $0.2 million was related to the impacts of other currencies, each of which was individually immaterial.

The $18.1 million currency gain recognized in the third quarter of 2024 was primarily due to the U.S.

Dollar weakening against the British Pound Sterling, Euro, and Polish Zloty, partially offset by the U.S.

Dollar weakening against the Taiwan Dollar, within the 13-week period ended September 28, 2024.

Other notable currency exposures include the Polish Zloty and Swiss Franc.

The majority of the Company’s consolidated foreign currency gain or loss is typically driven by the significant cash, receivables and payables held in a currency other than the functional currency at a given legal entity.

The $3.1 million currency gain recognized in the first quarter of 2026 was primarily due to the U.S.

Dollar strengthening against the Taiwan Dollar and the Swiss Franc, partially offset by the U.S.

Dollar strengthening against the Euro, within the 13-week period ended March 28, 2026.

During this period, the U.S.

Dollar weakened 3.7% against the British Pound Sterling, 4.2% against the Euro, and 5.3% against the Polish Zloty, resulting in gains of $3.2 million, $8.9 million, and $9.3 million, respectively, while the U.S.

Dollar weakened 2.9% against the Taiwan Dollar, resulting in a loss of $10.4 million.

The remaining net currency gain of $7.1 million was related to the impacts of other currencies, each of which was individually immaterial.

Income Tax Provision

The Company recorded income tax expense of $108.2 million in the 13-week period ended September 27, 2025, compared to income tax expense of $87.1 million in the 13-week period ended September 28, 2024.

The effective tax rate was 21.2% in the third quarter of 2025, compared to 17.9% in the third quarter of 2024.

The increase in the effective tax rate in the current quarter was primarily driven by the U.S.

tax legislation enacted during the current quarter, which, among other things, changed capitalization requirements of certain research and development costs, resulting in a year-to-date adjustment due to a decrease in certain expected U.S.

tax deductions and credits.

As a result of the above, net income for the 13-week period ended September 27, 2025 was $401.6 million compared to $399.1 million for the 13-week period ended September 28, 2024, an increase of $2.5 million.

Comparison of 39-Weeks Ended September 27, 2025 and September 28, 2024

39-Weeks Ended

September 27, 2025

Year-over-Year Change

39-Weeks Ended

September 28, 2024

Percentage of Total Net Sales

Net sales increased 14% for the 39-week period ended September 27, 2025 when compared to the year-ago period.

Total unit sales in the first three quarters of 2025 increased by approximately 10% to 14,547 when compared to total unit sales of 13,165 in the first three quarters of 2024, which differs from the percent increase in revenue primarily due to shifts in segment and product mix.

Fitness was the largest portion of our revenue mix in the first three quarters of 2025 at 31%, while outdoor was the largest portion of our revenue mix in the first three quarters of 2024 at 30%.

The increase in fitness revenue was driven by strong demand for advanced wearables.

Outdoor revenue increased primarily due to growth in adventure watches.

The increase in aviation revenue was driven by sales growth in OEM and aftermarket product categories.

The increase in marine revenue was driven by sales growth across multiple product categories, led by chartplotters.

Auto OEM revenue increased primarily due to growth in domain controllers.

39-Weeks Ended

September 27, 2025

Year-over-Year Change

39-Weeks Ended

September 28, 2024

Percentage of Segment Net Sales

Percentage of Total Net Sales

Gross profit dollars in the first three quarters of 2025 increased 15%, primarily due to the increase in net sales when compared to the year-ago period, as described above.

Consolidated gross margin as a percent of net sales was relatively flat when compared to the year-ago period.

The marine gross margin percentage increase of 140 basis points was primarily attributable to favorable product mix.

The fitness, outdoor, and aviation gross margin percentages were relatively flat when compared to the year-ago period.

The auto OEM gross margin percentage decrease of 150 basis points was primarily attributable to an increase in accrued warranty costs associated with prior period sales.

Operating Expense

39-Weeks Ended

September 27, 2025

Year-over-Year Change

39-Weeks Ended

September 28, 2024

Research and development expense

Percentage of Total Net Sales

Selling, General and administrative expenses

Percentage of Total Net Sales

Total operating expense in the first three quarters of 2025 increased 13% in absolute dollars and was relatively flat as a percent of revenue when compared to the year-ago period.

Operating expense, as a percent of segment net sales, decreased in the fitness, aviation, and auto OEM segments when compared to the year-ago period by 230 basis points, 110 basis points, and 110 basis points, respectively, due to the increase in sales and greater leverage of expenses.

Operating expense, as a percent of segment net sales, increased in the outdoor and marine segments by 110 basis points and 140 basis points, respectively, when compared to the year-ago period due to expenses growing more than sales.

Research and development expense increased 13% in absolute dollars when compared to the year-ago period.

The absolute dollar expense increase was primarily due to higher engineering personnel-related expenses.

Selling, general and administrative expense increased 13% in absolute dollars when compared to the year-ago period.

The absolute dollar expense increase was primarily due to higher personnel-related expenses.

Operating Income

Operating Income (Loss)

39-Weeks Ended

September 27, 2025

Year-over-Year Change

39-Weeks Ended

September 28, 2024

Percentage of Segment Net Sales

Percentage of Total Net Sales

NM - Represents that the percentage change is not meaningful.

Total operating income in the first three quarters of 2025 increased 17% in absolute dollars and was relatively flat as a percent of revenue when compared to the year-ago period.

The improved operating income dollar performance in fitness, outdoor, aviation, and marine was partially offset by a decrease in auto OEM.

Other Income (Expense)

39-Weeks Ended

September 27, 2025

39-Weeks Ended

September 28, 2024

Interest income

Foreign currency gains

The average interest returns on cash and investments during the 39-week periods ended September 27, 2025 and September 28, 2024 were 3.2% and 3.3%, respectively.

Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S.

The Taiwan Dollar is the functional currency of Garmin Corporation, the Euro is the functional currency of several subsidiaries, and the U.S.

Dollar is the functional currency of Garmin (Europe) Ltd., although some transactions and balances are denominated in British Pounds.

Other notable currency exposures include the Australian Dollar and Polish Zloty.

The $21.6 million currency gain recognized in the 39-week period ended September 27, 2025 was primarily due to the U.S.

Dollar weakening against the Euro and British Pound Sterling, partially offset by the U.S.

Dollar weakening against the Taiwan Dollar, within the 39-week period ended September 27, 2025.

Dollar strengthened 2.0% against the Taiwan Dollar and 1.0% against the Swiss Franc, resulting in gains of $11.2 million and $3.4 million, respectively, while the U.S.

Dollar strengthened 2.2% against the Euro, resulting in a loss of $10.8 million.

The remaining net currency loss of $0.7 million was related to the impacts of other currencies, each of which was individually immaterial.

The $24.8 million currency gain recognized in the first quarter of 2025 was primarily due to the U.S.

Dollar weakening against the Euro and Polish Zloty, and strengthening against the Taiwan Dollar, within the 13-week period ended March 29, 2025.

During this period, the U.S.

Dollar weakened 12.2% against the Euro and 6.5% against the British Pound Sterling, resulting in gains of $46.5 million and $2.9 million, respectively, while the U.S.

Dollar weakened 7.8% against the Taiwan Dollar, resulting in a loss of $35.1 million.

Dollar weakened 3.8% against the Euro, 5.6% against the Polish Zloty, and strengthened 1.1% against the Taiwan Dollar, resulting in gains of $12.6 million, $3.2 million, and $6.0 million, respectively.

The remaining net currency gain of $3.0 million was related to the impacts of other currencies, each of which was individually immaterial.

The $15.6 million currency gain recognized in the 39-week period ended September 28, 2024 was primarily due to the U.S.

Dollar strengthening against the Taiwan Dollar within the 39-week period ended September 28, 2024.

During this period, the U.S.

Dollar strengthened 2.8% against the Taiwan Dollar, resulting in a gain of $19.6 million.

The remaining net currency loss of $4.0 million was related to the impacts of other drivers, each of which was individually immaterial.

Income Tax Provision

The Company recorded income tax expense of $243.9 million in the first three quarters of 2025, compared to income tax expense of $203.6 million in the first three quarters of 2024.

The effective tax rate was 17.7% in the first three quarters of 2025, compared to 17.3% in the first three quarters of 2024.

The increase in the effective tax rate in the current period was primarily driven by the U.S.

tax deductions and credits.

As a result of the above, net income for the 39-week period ended September 27, 2025 was $1,135.2 million compared to $975.7 million for the 39-week period ended September 28, 2024, an increase of $159.5 million.

The Company recorded income tax expense of $67.5 million in the 13-week period ended March 28, 2026, compared to income tax expense of $56.3 million in the 13-week period ended March 29, 2025.

The effective tax rate was 14.3% in the first quarter of 2026, which is comparable to 14.5% in the first quarter of 2025.

As a result of the above, net income for the 13-week period ended March 28, 2026 was $405.1 million compared to $332.8 million for the 13-week period ended March 29, 2025, an increase of $72.3 million.

Liquidity and Capital Resources

2 unchanged sentences

Cash, Cash Equivalents, and Marketable Securities

As of September 27, 2025, we had approximately $3.9 billion of cash, cash equivalents and marketable securities.

As of March 28, 2026, we had approximately $4.3 billion of cash, cash equivalents and marketable securities.

Management invests idle or surplus cash in accordance with the Company's investment policy, which has been approved by the Company’s Board of Directors.

The investment policy’s primary objectives are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk.

Garmin’s average interest rate returns on cash and investments during the first three quarters of 2025 and 2024 were 3.2% and 3.3%, respectively.

The fair value of our securities varies from period to period due to changes in interest rates, the performance of the underlying collateral, and the credit performance of the underlying issuer, among other factors.

See Note 4 – Marketable Securities in the Notes to the Condensed Consolidated Financial Statements for additional information regarding marketable securities.

Cash provided by operating activities totaled $1,079.6 million for the first three quarters of 2025, compared to $948.6 million for the first three quarters of 2024.

The increase was primarily due to an increase in cash received from customers primarily driven by higher net sales, partially offset by increases in cash paid for cost of goods sold and operating expenses and a strategic increase in inventory in the first three quarters of 2025 compared to the first three quarters of 2024.

Cash used in investing activities totaled $513.8 million for the first three quarters of 2025, compared to $190.8 million for the first three quarters of 2024.

The increase was primarily due to an increase in cash used for acquisitions, an increase in net purchases of marketable securities, and an increase in purchases of property and equipment in the first three quarters of 2025 compared to the first three quarters of 2024.

Cash used in financing activities totaled $625.5 million for the first three quarters of 2025, compared to $449.4 million for the first three quarters of 2024.

This increase was primarily due to higher purchases of treasury shares under the share repurchase plan, higher cash dividend payments, and an increase in the purchase of treasury shares related to equity awards in the first three quarters of 2025 compared to the first three quarters of 2024.

Garmin’s average interest rate returns on cash and investments during the first quarter of 2026 and 2025 were 3.3% and 3.2%, respectively.

The fair value of our securities varies from period to period due to changes in interest rates, in the performance of the underlying collateral, and in the credit performance of the underlying issuer, among other factors.

See Note 4 – Marketable Securities in the Notes to Condensed Consolidated Financial Statements for additional information regarding marketable securities.

Cash provided by operating activities totaled $536.0 million for the first quarter of 2026, compared to $420.8 million for the first quarter of 2025.

The increase in cash received from customers primarily driven by higher net sales was partially offset by increases in cash paid for cost of goods sold and operating expenses, and an increase in cash paid for taxes in the first quarter of 2026 compared to the first quarter of 2025.

Cash used in investing activities totaled $252.4 million for the first quarter of 2026, compared to $132.6 million for the first quarter of 2025.

The increase was primarily due to an increase in net purchases of marketable securities and an increase in purchases of property and equipment in the first quarter of 2026 compared to the first quarter of 2025.

Cash used in financing activities totaled $260.1 million for the first quarter of 2026, compared to $204.8 million for the first quarter of 2025.

This increase was primarily due to higher cash dividend payments, an increase in the purchase of treasury shares related to equity awards, and higher purchases of treasury shares under share repurchase plans in the first quarter of 2026 compared to the first quarter of 2025.

Operating Leases

1 unchanged sentence

Leased properties are typically used for office space, distribution, data centers, and retail.

As of September 27, 2025, the Company had fixed lease payment obligations of $222.7 million, with $42.8 million payable within 12 months.

As of March 28, 2026, the Company had fixed lease payment obligations of $242.6 million, with $48.5 million payable within 12 months.

Inventory Purchase Obligations

1 unchanged sentence

The Company’s inventory purchase obligations are primarily noncancelable commitments.

As of September 27, 2025, the Company had inventory purchase obligations of $922.8 million, with $683.1 million payable within 12 months.

As of March 28, 2026, the Company had inventory purchase obligations of $1,116.1 million, with $862.5 million payable within 12 months.

Other Purchase Obligations

The Company’s other purchase obligations primarily consist of noncancelable commitments for capital expenditures and other indirect purchases in connection with conducting our business.

As of September 27, 2025, the Company had other purchase obligations of $375.6 million, with $173.7 million payable within 12 months.

Other Uses of Cash

The Company estimates net cash outlays for income taxes in 2025 will be lower than previously anticipated, primarily as a result of the U.S.

tax legislation enacted during the current quarter, which changed capitalization requirements of certain research and development costs.

As of March 28, 2026, the Company had other purchase obligations of $634.9 million, with $342.8 million payable within 12 months.

Critical Accounting Policies and Estimates

5 unchanged sentences

For a description of the significant accounting policies and methods used in the preparation of the Company’s 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 and “Critical Accounting Policies and Estimates” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025.

There were no significant changes to the Company’s critical accounting policies and estimates in the 13-week and 39-week periods ended September 27, 2025.

There were no significant changes to the Company’s critical accounting policies and estimates in the 13-week period ended March 28, 2026.

Quantitative and Qualitat ive Disclosures About Market Risk

1 unchanged sentence

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part II, Item 7A, "Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended December 27, 2025.

There have been no material changes during the 13-week and 39-week periods ended September 27, 2025 in the risks described in our Annual Report on Form 10-K related to market sensitivity, inflation, foreign currency exchange rate risk and interest rate risk.

There have been no material changes during the 13-week period ended March 28, 2026 in the risks described in our Annual Report on Form 10-K related to market sensitivity, inflation, foreign currency exchange rate risk and interest rate risk.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis