SCHAFFHAUSEN, Switzerland, Oct. 29, 2025 /PRNewswire/ -- Garmin® Ltd. (NYSE:GRMN), today announced results for the third quarter ended September 27, 2025.
Highlights for third quarter 2025 include:
Record consolidated revenue of approximately $1.8 billion, a 12% increase compared to the prior year quarter
Gross and operating margins of 59.1% and 25.8% respectively
Record operating income of $457 million, a 4% increase compared to the prior year quarter
GAAP EPS of $2.08 and pro forma EPS(1) of $1.99, representing flat pro forma EPS compared to the prior year quarter
Named 2025 Manufacturer of the Year by the National Marine Electronics Association for the 11th consecutive year, and received eight Product of Excellence awards
Launched the fēnix® 8 Pro series, our first-ever smartwatch with inReach® satellite and cellular connectivity
Announced collaboration with King's College London as exclusive smartwatch provider for the Enhanced Maternal and Baby Results with AI-supported Care and Empowerment (EMBRACE) program of research
Announced Federal Aviation Administration certification of Garmin Autoland and Garmin Autothrottle for select G1000® NXi-equipped King Air 350 aircraft.
(In thousands, except per share information)
13-Weeks Ended
39-Weeks Ended
September 27,
September 28,
YoY
September 27,
September 28,
YoY
2025
2024
Change
2025
2024
Change
Net sales
$1,770,901
$1,586,022
12 %
$5,120,564
$4,474,342
14 %
Fitness
601,013
463,887
30 %
1,591,159
1,235,182
29 %
Outdoor
497,598
526,551
(5) %
1,426,451
1,332,617
7 %
Aviation
240,445
204,631
18 %
712,926
639,739
11 %
Marine
267,005
222,244
20 %
885,704
821,933
8 %
Auto OEM
164,840
168,709
(2) %
504,324
444,871
13 %
Gross profit
1,046,487
951,599
10
%
2,998,043
2,616,630
15
%
Gross margin %
59.1
%
60.0
%
58.5
%
58.5
%
Operating Income
456,803
437,475
4
%
1,261,922
1,077,913
17
%
Operating income %
25.8
%
27.6
%
24.6
%
24.1
%
GAAP diluted EPS
$2.08
$2.07
0
%
$5.87
$5.06
16
%
Pro forma diluted EPS(1)
$1.99
$1.99
0
%
$5.77
$4.99
16
%
(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma diluted EPS
Executive Overview from Cliff Pemble, President and Chief Executive Officer:
"We achieved another quarter of strong financial results with growth in both consolidated revenue and operating income, and we experienced strong double-digit revenue growth in three business segments reflecting the strength of our unique, diversified business model. Looking ahead, we are well positioned for the holiday selling season with a strong lineup of innovative products." - Cliff Pemble, President and Chief Executive Officer of Garmin Ltd.
Fitness:
Revenue from the fitness segment increased 30% in the third quarter with growth led by strong demand for advanced wearables. Gross and operating margins were 60% and 32%, respectively, resulting in $194 million of operating income. During the quarter, we launched several new products including the Edge® 550 and Edge 850 cycling computers bringing new coaching plans and cycling metrics to the Edge lineup; the BounceTM 2 smartwatch for kids offering voice calling, messaging, and geofencing alerts; and the Venu® 4 smartwatch with a premium all-metal design, a built-in flashlight, and many new health and wellness features. We also announced a collaboration with King's College London, as the exclusive smartwatch provider for the EMBRACE program of research, to study the health of women and their partners during and after pregnancy with emphasis on detecting and managing potentially dangerous conditions such as gestational diabetes and hypertension.
Outdoor:
Revenue from the outdoor segment decreased 5% in the third quarter primarily due to consumer auto and adventure watch product categories as we compare against strong prior year product launch cycles. Gross and operating margins were 66% and 34%, respectively, resulting in $170 million of operating income. During the quarter we launched the fēnix 8 Pro series, our first-ever smartwatch with inReach satellite and cellular connectivity offering a range of on-device communication options including voice, text, tracking, and SOS using the Garmin Response℠ Center for adventures both on and off the grid. In addition, we launched the fēnix 8 Pro, MicroLED, which is the first smartwatch to incorporate a high-resolution MicroLED display for superior brightness and readability. We also entered a new market with the launch of our BlazeTM equine wellness system specifically designed to help horse riders, owners and trainers monitor their horse's health and fitness levels. Also during the quarter, we launched several new products across our outdoor markets including the GPSMAP® H1 connected handheld, the Instinct® Crossover hybrid smartwatch, the DescentTM S1 smart buoy and X30 large-format dive computer.
Aviation:
Revenue from the aviation segment increased 18% in the third quarter with growth in both the OEM and aftermarket product categories. Gross and operating margins were 75% and 25%, respectively, resulting in $61 million of operating income. During the quarter, we certified a retrofit integrated cockpit system for the Cessna Citation CJ1. Also during the quarter, we certified Autoland and Autothrottle capability for retrofit installation in select Beechcraft King Air 350 aircraft and announced additional certifications for our GFCTM 600 autopilot, bringing the performance and safety enhancing benefits of our flight control technology to more aircraft models.
Marine:
Revenue from the marine segment increased 20% in the third quarter with growth across multiple categories. Gross and operating margins were 56% and 19%, respectively, resulting in $49 million of operating income. During the quarter, we launched the Force® Current, the industry's first hands-free kayak propulsion system, and we expanded the Force Kraken trolling motor lineup which now includes a model with a 110-inch driveshaft for large fishing boats. We also launched the ECHOMAPTM Ultra 2 chartplotter with a large 16-inch display with premium mapping and exceptional sonar capabilities.
Auto OEM:
Revenue from the auto OEM segment decreased 2% during the third quarter as certain legacy programs approach end-of-life and were partially offset by growth in our most recent BMW domain controller program. Gross margin was 15% and we recorded an operating loss of $17 million in the quarter. During the quarter, we shipped the three millionth BMW domain controller, demonstrating our capability as a respected tier 1 supplier to the automotive market.
Additional Financial Information:
Total operating expenses in the third quarter were $590 million, a 15% increase over the prior year. Research and development and selling, general and administrative expenses increased 15% and 14%, respectively, driven primarily by personnel related costs.
The effective tax rate in the third quarter was 21.2% compared to the effective tax rate of 17.9% in the prior year quarter. The increase in the current quarter was primarily due to the U.S. tax legislation enacted during the quarter which resulted in a year-to-date adjustment due to a decrease in expected U.S. tax deductions and credits.
In the third quarter of 2025, we generated operating cash flows of $486 million and free cash flow(1) of $425 million. We paid a quarterly dividend of approximately $173 million and repurchased $36 million of the Company's shares within the quarter, leaving approximately $107 million remaining as of September 27, 2025 in the $300 million share repurchase program authorized through December 2026. We ended the quarter with cash and marketable securities of approximately $3.9 billion.
(1)
See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma effective tax rate and free cash flow.
2025 Fiscal Year Guidance:
Based on our performance in the first three quarters of 2025 and recent trends, we are updating our full year 2025 guidance. We anticipate revenue of approximately $7.10 billion and pro forma EPS of $8.15 based on gross margin of 58.5%, operating margin of 25.2% and a pro forma effective tax rate of 17.5% (see attached discussion on Forward-looking Financial Measures).
Dividend Recommendation:
The Board of Directors has established December 26, 2025, as the payment date for the next dividend installment of $0.90 per share with a record date of December 12, 2025. At the 2025 annual shareholders' meeting, Garmin shareholders, in accordance with Swiss corporate law, approved a cash dividend in the total amount of $3.60 per share, payable in four equal installments on dates to be determined by the Board in its discretion. The first and second payments were made on June 27, 2025 and September 26, 2025. The Board currently anticipates the scheduling of the remaining quarterly dividend installment as follows:
Dividend Date
Record Date
$s per share
March 27, 2026
March 13, 2026
$0.90
Webcast Information/Forward-Looking Statements:
The information for Garmin Ltd.'s earnings call is as follows:
When:
Wednesday, October 29, 2025 10:30 a.m. Eastern
Where:
Join a live stream of the call at the following link
https://www.garmin.com/en-US/investors/events/
An archive of the live webcast will be available until October 28, 2026 on the Garmin website at www.garmin.com. To access the replay, click on the Investors link and click over to the Events page.
This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as "anticipates," "would," "may," "expects," "estimates," "plans," "intends," "projects," and other words or phrases with similar meanings. Any statements regarding the Company's expected fiscal 2025 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company's expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, global trade related impacts, potential future acquisitions, share repurchase programs, currency movements, expenses, pricing, new product launches, market reach, statements relating to possible future dividends, and the Company's plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 28, 2024 and the Quarterly Report on Form 10-Q for the quarter ended September 27, 2025 filed by Garmin with the Securities and Exchange Commission (Commission file number 001-41118). A copy of Garmin's 2024 Form 10-K and the Q3 2025 Form 10-Q can be downloaded from https://www.garmin.com/en-US/investors/sec/. All information provided in this release and in the attachments is as of September 27, 2025. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments.
Garmin, the Garmin logo, the Garmin delta, fēnix, inReach, G1000, Edge, venu, GPSMAP, Instinct, and Force are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. Bounce, Blaze, Descent, GFC, and ECHOMAP are trademarks of Garmin Ltd. or its subsidiaries. Garmin Response is a service mark of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.
Investor Relations Contact:
Media Relations Contact:
Teri Seck
Krista Klaus
913/397-8200
913/397-8200
Garmin Ltd. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share information)
13-Weeks Ended
39-Weeks Ended
September 27,
September 28,
September 27,
September 28,
2025
2024
2025
2024
Net sales
$
1,770,901
$
1,586,022
$
5,120,564
$
4,474,342
Cost of goods sold
724,414
634,423
2,122,521
1,857,712
Gross profit
1,046,487
951,599
2,998,043
2,616,630
Research and development expense
286,464
249,162
831,247
734,848
Selling, general and administrative expenses
303,220
264,962
904,874
803,869
Total operating expense
589,684
514,124
1,736,121
1,538,717
Operating income
456,803
437,475
1,261,922
1,077,913
Other income (expense):
Interest income
32,085
28,830
