01—Abstract
Summary
Summary of the 10-K filed February 18, 2026. Cited figures are marked; the original filing is the authoritative source.
Garmin Ltd. reported robust growth in its fiscal year 2025, with total net sales increasing by 15% to $7.25 billiona.
This growth was primarily driven by a strong performance in the Fitness segment, which saw a 33%b 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 billionc. 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 milliond 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.
02—Key points
Key Highlights
- Garmin reported a 15% increase in total net sales, reaching $7.25 billion in fiscal year 2025.
- The Fitness segment was a key growth driver, with revenues up 33% year-over-year, driven by strong demand for wearables.
- Net income grew by 18% to $1.66 billion, indicating strong profitability.
- The company invested heavily in R&D, maintaining it at 16% of net sales, signaling a focus on future innovation.
- Garmin continued its capital return strategy, repurchasing $181 million in stock and paying $693 million in dividends.
- While the Auto OEM segment reported an operating loss of $48.6 million, it saw a 9% increase in revenue, indicating a positive trend.
- The company maintains a strong liquidity position with $4.1 billion in cash, cash equivalents, and marketable securities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Garmin Ltd kept $0.23.
- Revenue$7.25B100.0%
- Cost of revenue−$2.99B41.3%
- Gross profit$4.26B58.7%
- Operating costs−$2.38B32.9%
- Operating income$1.88B25.9%
- Interest, other & tax−$212.2M2.9%
- Net income$1.66B23.0%
Where FY2025 revenue went
$7.25B- Cost of revenue: $2.99B, 41% of revenue
- Net income: $1.66B, 23% of revenue
- SG&A: $1.25B, 17% of revenue
- R&D: $1.13B, 16% of revenue
- Interest, other & tax: $212.2M, 2.9% of revenue
Kept 23% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 18, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $7.25B$6.30B | +15.1% |
| Cost of Revenue | $2.99B$2.60B | +15.0% |
| Gross Profit | $4.26B$3.70B | +15.1% |
| R&D Expenses | $1.13B$993.60M | +13.3% |
| SG&A Expenses | $1.25B$1.11B | +13.1% |
| Operating Expenses | $2.38B$2.10B | +13.2% |
| Operating Income | $1.88B$1.59B | +17.7% |
| Net Income | $1.66B$1.41B | +17.9% |
| EPS (Basic) | $8.65$7.35 | +17.7% |
| EPS (Diluted) | $8.59$7.30 | +17.7% |
| Shares Outstanding (Basic) | 192.47M192.06M | +0.2% |
| Shares Outstanding (Diluted) | 193.62M193.28M | +0.2% |
05—Questions
Frequently Asked Questions
What were the main drivers of Garmin's revenue growth in fiscal year 2025?
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%.
How did Garmin manage its operating expenses?
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.
What is Garmin's capital allocation strategy, as evidenced by its financial activities?
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.
Are there any segments that are underperforming or posing a risk?
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.
06—Continue