10-KPeriod: FY2025

GARMIN LTD Annual Report, Year Ended Dec 27, 2025

Filed February 18, 2026For Securities:GRMN

Summary

Garmin Ltd. reported robust growth in its fiscal year 2025, with total net sales increasing by 15% to $7.25 billion. This growth was primarily driven by a strong performance in the Fitness segment, which saw a 33% year-over-year revenue increase, largely due to demand for wearables. The Outdoor segment also showed resilience with a 5% increase, while Aviation and Marine segments grew by 13% and 10% respectively. The Auto OEM segment, though still operating at a loss, demonstrated significant growth of 9%. Overall, net income rose by 18% to $1.66 billion. The company continued its investment in research and development, maintaining it at 16% of net sales, underscoring its commitment to innovation across its diverse product portfolio. Garmin also repurchased approximately $181 million of its stock under its share repurchase program and paid $693 million in dividends, demonstrating a balanced approach to capital allocation. Despite facing challenges such as potential supply chain constraints and foreign currency fluctuations, Garmin's vertically integrated manufacturing and diversified market presence position it for continued growth.

Financial Highlights

49 data points
Beta

Revenue

$7.25B

58.7% Gross Margin

Net Income

$1.66B

23.0% Net Margin

EPS (Diluted)

$8.59

Total Assets

$10.99B

Cash & Equivalents

$2.28B

Free Cash Flow

$1.36B

Financial Statements
Beta
Revenue$7.25B
Cost of Revenue$2.99B
Gross Profit$4.26B
R&D Expenses$1.13B
SG&A Expenses$1.25B
Operating Expenses$2.38B
Operating Income$1.88B
Net Income$1.66B
EPS (Basic)$8.65
EPS (Diluted)$8.59
Shares Outstanding (Basic)192.47M
Shares Outstanding (Diluted)193.62M

Key Highlights

  • 1Garmin reported a 15% increase in total net sales, reaching $7.25 billion in fiscal year 2025.
  • 2The Fitness segment was a key growth driver, with revenues up 33% year-over-year, driven by strong demand for wearables.
  • 3Net income grew by 18% to $1.66 billion, indicating strong profitability.
  • 4The company invested heavily in R&D, maintaining it at 16% of net sales, signaling a focus on future innovation.
  • 5Garmin continued its capital return strategy, repurchasing $181 million in stock and paying $693 million in dividends.
  • 6While the Auto OEM segment reported an operating loss of $48.6 million, it saw a 9% increase in revenue, indicating a positive trend.
  • 7The company maintains a strong liquidity position with $4.1 billion in cash, cash equivalents, and marketable securities.

Frequently Asked Questions

Garmin's revenue growth in fiscal year 2025 was primarily driven by strong demand in its Fitness segment, particularly for wearables, which saw a 33% increase in revenue. Growth in the Outdoor, Aviation, and Marine segments also contributed positively, with increases of 5%, 13%, and 10% respectively. The Auto OEM segment also showed significant growth at 9%.

Total operating expenses increased by 13% in absolute dollars but remained relatively flat as a percentage of revenue (33%) in fiscal year 2025 compared to fiscal year 2024. Research and development expenses were maintained at 16% of net sales, reflecting continued investment in innovation. Selling, general, and administrative expenses also remained stable as a percentage of revenue.

Garmin demonstrates a balanced capital allocation strategy. In fiscal year 2025, the company repurchased $181 million of its common stock under its share repurchase program and paid out $693 million in dividends to shareholders. The company also maintains a substantial cash balance of $4.1 billion, providing flexibility for future investments and operations.

While most segments performed well, the Auto OEM segment continues to operate at a loss, reporting an operating loss of $48.6 million in fiscal year 2025. However, this segment did show a 9% revenue increase, suggesting potential for future improvement. The company's risk factors highlight potential challenges related to supply chain constraints, foreign currency fluctuations, and the competitive landscape across all its markets.