Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Garmin delivered a strong FY2025 with revenue rising 15.1% to $7.25B and net income growing 17.9% to $1.66B, driven by broad-based segment growth while maintaining industry-leading margins and a fortress balance sheet.
Revenue
$7.25B
+15.06% YoY
EPS (Diluted)
$8.59
+17.67% YoY
Gross Margin
58.7%
+0.0 pts YoY
Operating Income
$1.88B
+17.70% YoY
Source: SEC XBRL
Garmin (GRMN) reported FY2025 revenue of $7.25B, up 15.1% year over year. Operating margin was 25.9%, up 0.6 points from 25.3% a year earlier. Operating cash flow was $1.63B, up 14.0% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.81 | 2.29 | Beat +22.7% |
| Mar 2026 | 2.08 | 1.86 | Beat +12.1% |
| Dec 2025This filing | 2.79 | 2.44 | Beat +14.2% |
| Sep 2025 | 1.99 | 2.00 | Miss -0.6% |
Reported EPS of $2.79 versus the $2.44 analyst consensus — a +14.2% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue increased 15.1% year-over-year to $7.25B in FY2025 (from $6.30B in FY2024), reflecting strong consumer demand across Garmin's diversified product portfolio spanning fitness, outdoor, aviation, marine, and auto segments.
Source: 10-K Income Statement
Operating income grew 17.7% to $1.88B, outpacing revenue growth, which expanded the operating margin by approximately 58 basis points to 25.9%. This demonstrates Garmin's ability to scale efficiently while controlling costs.
Source: 10-K Income Statement
R&D expense rose 13.3% to $1.13B, representing approximately 15.5% of revenue, underscoring Garmin's commitment to product innovation while keeping R&D growth slightly below revenue growth to generate operating leverage.
Source: 10-K Income Statement
Operating cash flow reached $1.63B (+14.0% YoY), and Garmin paid $663.9M in dividends (+16.0% YoY), reflecting confidence in sustained earnings power and a commitment to returning capital to shareholders.
Source: 10-K Cash Flow Statement
Total assets grew 14.2% to $11.0B, with cash and equivalents of $2.28B and a current ratio of 3.63x, indicating exceptional short-term financial health and minimal liquidity risk.
Source: 10-K Balance Sheet
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Garmin operates globally and generates a significant portion of revenue outside the United States, exposing it to foreign currency fluctuations. Adverse movements in key currencies such as the Euro, Swiss Franc, or Taiwan Dollar could negatively impact reported revenues and margins. This risk is particularly relevant given Garmin's Swiss-based holding structure.
Source: 10-K Risk Factors
Garmin faces intense competition from large technology companies including Apple, Samsung, and Google in the fitness and smartwatch segments. These competitors have significantly larger marketing budgets and ecosystem advantages that could erode Garmin's market share over time. Sustained pricing pressure could compress gross margins, which currently stand at 58.7%.
Source: 10-K Risk Factors
Garmin's aviation business is subject to stringent FAA and international regulatory requirements, and product certifications can be lengthy and costly. Delays in obtaining certifications for new avionics products could delay revenue recognition and increase development costs. Changes in aviation regulations could also require costly product redesigns.
Source: 10-K Risk Factors
Garmin relies on third-party suppliers for semiconductors and other key components, and supply disruptions could impair production capacity. The global semiconductor supply chain remains susceptible to geopolitical tensions, particularly given Garmin's manufacturing presence in Taiwan. Inventory shortfalls could result in lost sales and customer dissatisfaction.
Source: 10-K Risk Factors
Investing cash outflows increased 64.0% year-over-year to -$645.2M in FY2025, suggesting accelerated capital expenditures or acquisitions. If these investments do not generate expected returns, they could weigh on future free cash flow and return on assets, which currently stands at 15.1%.
Source: 10-K Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.25 $B | 6.30 $B | +15.06% |
Cost of Revenue $B | 2.99 $B | 2.60 $B | +14.95% |
Gross Profit $B | 4.26 $B | 3.70 $B | +15.14% |
Operating Income $B | 1.88 $B | 1.59 $B | +17.70% |
Net Income $B | 1.66 $B | 1.41 $B | +17.89% |
EPS (Basic) $ | 8.65 $ | 7.35 $ | +17.69% |
EPS (Diluted) $ | 8.59 $ | 7.30 $ | +17.67% |
R&D Expense $B | 1.13 $B | 0.99 $B | +13.35% |
SG&A Expense $B | 1.25 $B | 1.11 $B | +13.08% |
Answers draw on this SEC filing and the data on this page
Garmin Ltd. reported strong financial results for 2026-Q2, with net sales increasing 11% year-over-year to $2.02B and net income rising 35% to $541.9M, driven by robust performance in its Fitness segment.
Garmin delivered a strong Q1 2026 with revenue of $1.75B (+14.2% YoY), operating income surging 29.7% to $432M, and diluted EPS of $2.09 (+21.5%), reflecting broad-based demand growth and meaningful margin expansion.