Summary
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 million. 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.
Financial Highlights
49 data points| Revenue | $1.77B |
| Cost of Revenue | $724.41M |
| Gross Profit | $1.05B |
| R&D Expenses | $286.46M |
| SG&A Expenses | $303.22M |
| Operating Expenses | $589.68M |
| Operating Income | $456.80M |
| Net Income | $401.62M |
| EPS (Basic) | $2.09 |
| EPS (Diluted) | $2.08 |
| Shares Outstanding (Basic) | 192.46M |
| Shares Outstanding (Diluted) | 193.53M |
Key Highlights
- 1Net 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.
- 2Net 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.
- 3For the first 39 weeks of 2025, net sales grew 14% to $5.12 billion, and net income increased by 16% to $1.14 billion.
- 4Operating 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.
- 5The 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.
- 6The 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.
- 7The 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.