Summary
Garmin Ltd. reported a strong second quarter for fiscal year 2025, with significant year-over-year growth across key financial metrics. Net sales increased by 20% to $1.81 billion for the quarter and by 16% to $3.35 billion for the first half of the year. This growth was primarily driven by robust performance in the Fitness segment, which saw a 41% increase in net sales for the quarter, fueled by high demand for advanced wearables. The Outdoor segment also showed resilience with an 11% increase in quarterly net sales, supported by adventure watch sales. Profitability saw substantial improvements, with operating income rising by 38% to $472.3 million in the second quarter and by 26% to $805.1 million for the first half. This was supported by a 24% increase in gross profit for the quarter, with consolidated gross margin expanding by 150 basis points to 59%. The company also demonstrated improved operational efficiency, with total operating expenses as a percentage of revenue decreasing. Diluted earnings per share increased to $2.07 for the quarter and $3.79 for the first half, reflecting strong operational execution and profitability.
Financial Highlights
50 data points| Revenue | $1.81B |
| Cost of Revenue | $747.55M |
| Gross Profit | $1.07B |
| R&D Expenses | $276.66M |
| SG&A Expenses | $318.05M |
| Operating Expenses | $594.72M |
| Operating Income | $472.30M |
| Net Income | $400.82M |
| EPS (Basic) | $2.08 |
| EPS (Diluted) | $2.07 |
| Shares Outstanding (Basic) | 192.52M |
| Shares Outstanding (Diluted) | 193.42M |
Key Highlights
- 1Net sales surged 20% year-over-year to $1.81 billion in Q2 2025, and 16% to $3.35 billion in the first half.
- 2Operating income increased significantly by 38% to $472.3 million in Q2 2025 and by 26% to $805.1 million in the first half.
- 3The Fitness segment was a key driver of growth, with net sales up 41% in Q2 2025 due to strong demand for advanced wearables.
- 4Consolidated gross margin improved by 150 basis points to 59% in Q2 2025.
- 5Operating expenses as a percentage of revenue decreased, indicating improved operational leverage.
- 6Diluted earnings per share (EPS) rose to $2.07 in Q2 2025, up from $1.56 in the prior year period.
- 7The company maintained a strong liquidity position with approximately $3.9 billion in cash, cash equivalents, and marketable securities as of June 28, 2025.