Garmin Stock Earnings Reports

Garmin reported a strong Q3 2025: consolidated revenue grew 12% to $1.77B (a Q3 record), operating income was a record $457M, gross margin 59.1% and pro forma EPS $1.99. Management reaffirmed full-year revenue of ~$7.1B and raised full-year pro forma EPS guidance to $8.15 (up $0.15). Segment performance was mixed: Fitness led with +30% (new wearables driving demand and raised segment growth outlook to ~29% for the year); Marine +20% and Aviation +18% (both had strong quarters and guidance increases — Aviation guidance raised to ~10%, Marine to ~10%); Outdoor declined 5% in Q3 and guidance was trimmed (now +3% for the year) due to product cycle timing after last year’s strong fenix 8 launch; Auto OEM down 2% with an operating loss and an isolated warranty accrual, but management expects new large programs to ramp and Auto OEM revenue to be ~+8% for the year. Operating expenses rose (personnel-driven R&D and SG&A increases), inventories were intentionally increased (~$1.9B) to support demand and mitigate tariff risk, cash & marketable securities were ~$3.9B, free cash flow for the quarter was $425M and full-year FCF is expected to be ~ $1.3B. Management sees channel inventory as lean and ready for a strong Q4 holiday season. Key risks called out: higher product costs (tariffs, currency/TWD strength, warranty accruals) that pressured gross margin vs. prior year, and potential near-term headwinds in Auto due to program transitions.