Garmin's Q4 Earnings Surpass Estimates, Revenues Rise Y/Y

Garmin Ltd. GRMN reported fourth-quarter 2025 pro forma earnings of $2.79 per share, beating the Zacks Consensus Estimate by 16.6%. The bottom line improved 16% on a year-over-year basis.

Net sales were $2.12 billion, which surpassed the Zacks Consensus Estimate by 5.6%. The figure increased 16.6% from the year-ago quarter.

GRMN’s year-over-year growth in the top line was attributed to the solid momentum across Outdoor, Fitness, Aviation, and Marine segments, partially offset by the Auto OEM segment.

Garmin’s Segmental Details

Outdoor (29.5% of Net Sales): The segment generated sales of $627.6 million in the reported quarter, which remained year over year, primarily due to tough comparisons against prior-year product launches. Operating income was $233.9 million, with a 37% operating margin.

Garmin Ltd. Price, Consensus and EPS Surprise

Garmin Ltd. price-consensus-eps-surprise-chart | Garmin Ltd. Quote

Fitness (36.0%): The segment recorded sales of $765.8 million, reflecting a 42% year-over-year increase, led by strong demand for wearables. Operating income was $256.9 million, with a 34% operating margin.

Aviation (12.9%): The segment achieved sales of $274.2 million, up 16% year over year, driven by growth in both OEM and aftermarket categories. Operating income came in at $84.7 million, with a 31% margin.

Marine (14.0%): Garmin posted sales of $296.9 million, up 18% year over year, led by chartplotter demand. Operating income was $52.1 million, resulting in an 18% margin.

Auto OEM (7.5%): Sales reached $160.4 million, down 3% year over year due to certain legacy programs nearing end-of-life. The segment reported an operating loss of $13.5 million, with a gross margin of 17%.

Garmin’s Operating Results

In fourth-quarter fiscal 2025, Garmin’s gross margin was 59.2%, down 10 basis points year over year. Operating expenses of $644 million increased 14% from the prior-year quarter.

Operating income rose to $614 million, up 19% year over year, with operating margin expanding to 28.9%, up 60 basis points.

Garmin’s Balance Sheet & Cash Flow

As of Dec. 27, 2025, Garmin held $2.67 billion in cash and marketable securities, up from $2.54 billion in the previous quarter.

Operating cash flow for the fourth quarter of 2025 was $554 million, and free cash flow was $430 million.

The company paid a quarterly dividend of $173 million and repurchased $51 million in shares during the quarter.

Garmin Maintains 2025 Guidance

Garmin now expects full-year 2026 revenues of $7.9 billion, reflecting continued growth momentum. The Zacks Consensus Estimate for the same has been pegged at $7.54 billion, indicating year-over-year growth of 13.3%.

It also expects a gross margin of 58.5%, an operating margin of 25.5%, and a pro forma effective tax rate of 16.0%.

The company projects pro forma EPS of $9.35. The Zacks Consensus Estimate for the same has been pegged at $8.77, indicating year-over-year growth of 7%.

Zacks Rank and Stocks to Consider

Currently, GRMN carries a Zacks Rank #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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