01—Abstract
Summary
Summary of the 10-Q filed October 29, 2025. Cited figures are marked; the original filing is the authoritative source.
Garmin Ltd. reported a solid performance for the third quarter and the first 39 weeks of fiscal year 2025, demonstrating continued revenue growth and profitability.
For the thirteen weeks ended September 27, 2025, net sales increased by 12% year-over-year to $1.77 billion, while net income rose slightly to $401.6 milliona. The 39-week period showed a robust 14% increase in net sales to $5.12 billion and a significant 16% rise in net income to $1.14 billion, indicating strong top-line momentum. Key drivers of this growth include robust demand in the fitness and aviation segments, which experienced double-digit revenue increases.
While the outdoor segment saw a slight decline in the quarter, it grew over the first 39 weeks. The company's operating income also saw healthy growth, particularly in the fitness, aviation, and marine segments. Management expresses confidence in the company's liquidity and ability to meet its financial obligations, supported by strong operating cash flows and existing cash reserves.
02—Key points
Key Highlights
- Net sales for the third quarter of 2025 increased 12% year-over-year to $1.77 billion, driven by strong performance in the Fitness, Aviation, and Marine segments.
- Net income for the third quarter was $401.6 million, a modest increase from $399.1 million in the prior year period, with diluted EPS at $2.08.
- For the first 39 weeks of 2025, net sales grew 14% to $5.12 billion, and net income increased by 16% to $1.14 billion.
- Operating income for the third quarter rose 4% to $456.8 million, reflecting a strong contribution from Fitness, Aviation, and Marine segments, partially offset by declines in Outdoor and Auto OEM.
- The Fitness segment continues to be a strong performer, with net sales up 30% in the quarter and operating income up 31%, driven by demand for advanced wearables.
- The company's cash position remains strong, with $2.07 billion in cash and cash equivalents and $466.8 million in marketable securities as of September 27, 2025.
- The effective tax rate increased to 21.2% in Q3 2025 from 17.9% in Q3 2024, primarily due to U.S. tax legislation changes affecting R&D cost capitalization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Garmin Ltd kept $0.23.
- Revenue$1.77B100.0%
- Cost of revenue−$724.4M40.9%
- Gross profit$1.05B59.1%
- Operating costs−$589.7M33.3%
- Operating income$456.8M25.8%
- Interest, other & tax−$55.2M3.1%
- Net income$401.6M22.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 29, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.77B$1.59B | +11.7% |
| Cost of Revenue | $724.41M$634.42M | +14.2% |
| Gross Profit | $1.05B$951.60M | +10.0% |
| R&D Expenses | $286.46M$249.16M | +15.0% |
| SG&A Expenses | $303.22M$264.96M | +14.4% |
| Operating Expenses | $589.68M$514.12M | +14.7% |
| Operating Income | $456.80M$437.48M | +4.4% |
| Net Income | $401.62M$399.11M | +0.6% |
| EPS (Basic) | $2.09$2.08 | +0.5% |
| EPS (Diluted) | $2.08$2.07 | +0.5% |
| Shares Outstanding (Basic) | 192.46M192.20M | +0.1% |
| Shares Outstanding (Diluted) | 193.53M193.17M | +0.2% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of Garmin in the third quarter of 2025?
Garmin reported a 12% increase in net sales to $1.77 billion and a slight increase in net income to $401.6 million for the third quarter ended September 27, 2025, compared to the same period in 2024. Diluted earnings per share were $2.08.
Which business segments contributed most to the revenue growth?
The Fitness segment showed significant growth with a 30% increase in net sales, driven by strong demand for advanced wearables. The Aviation and Marine segments also saw robust growth at 18% and 20% respectively. While the Outdoor segment experienced a 5% decrease in net sales for the quarter, it grew over the first 39 weeks of the year.
How did the company's profitability fare in the quarter?
Gross profit increased by 10% to $1.05 billion. Operating income grew by 4% to $456.8 million. The consolidated gross margin decreased by 90 basis points year-over-year, primarily due to higher product costs. The effective tax rate increased to 21.2% in Q3 2025 from 17.9% in Q3 2024 due to changes in U.S. tax legislation.
What is the company's financial position and liquidity like?
Garmin maintains a strong financial position with $2.07 billion in cash and cash equivalents and $466.8 million in marketable securities as of September 27, 2025. Cash flow from operations for the first 39 weeks was $1.08 billion, supporting investing and financing activities, including dividends and share repurchases.
06—Continue