GARMIN LTD (GRMN) Earnings History

GARMIN LTD - Q4 FY2025 EarningsBeat

Filed at: Feb 18, 2026, 7:00 AM EST|Read from source

EXECUTIVE SUMMARY

Garmin reported a strong finish to fiscal year 2025 with record revenue and operating income across all segments, driven by robust demand in Fitness and continued growth in Outdoor, Aviation, and Marine. The company anticipates continued momentum into 2026 with new product launches and a strategic focus on market diversification.

POSITIVE HIGHLIGHTS

  • •

    Consolidated revenue of $2.12 billion in Q4 FY2025, a 17% increase compared to the prior-year quarter.

    positive
  • •

    Record consolidated revenue of $7.25 billion for fiscal year 2025, a 15% increase compared to the prior year.

    positive
  • •

    All five segments posted record full-year revenue in FY2025.

    positive
  • •

    Operating income increased 19% to $614 million in Q4 FY2025 and 18% to $1.88 billion for FY2025.

    positive
  • •

    GAAP diluted EPS of $2.73 in Q4 FY2025, a 21% increase over the prior-year quarter.

    positive
  • •

    Pro forma diluted EPS of $8.56 for FY2025, representing 16% growth over the prior year.

    positive
  • •

    Announced a new $500 million share repurchase program.

    positive
  • •

    Proposed a 17% dividend increase to $4.20 per share annually.

    positive

CONCERNS & RISKS

  • •

    Revenue from the Auto OEM segment decreased 3% in Q4 FY2025 due to legacy programs approaching end-of-life.

    attention
  • •

    The Auto OEM segment recorded an operating loss of $14 million in Q4 FY2025.

    negative
  • •

    Inventories increased to $1.77 billion in Q4 FY2025 from $1.47 billion in Q4 FY2024.

    attention
  • •

    The effective tax rate in Q4 FY2025 was 16.8%, an increase from 15.6% in the prior year quarter, primarily due to new U.S. tax legislation.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$2.12B
+17.0%
Prior year: $1.82B
Annual (YTD)
$7.25B
N/A
Prior year: $6.30B
Net Income
Quarterly
$528.68M
+21.3%
Prior year: $435.73M
Annual (YTD)
$1.66B
N/A
Prior year: $1.41B
EPS (Diluted)
Quarterly
$2.73
+21.3%
Prior year: $2.25
Operating Income
Quarterly
$614.15M
+19.0%
Prior year: $516.08M
Annual (YTD)
$1.88B
N/A
Prior year: $1.59B
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Gross Margin
Current Quarter
59.2%
Prior Year
59.3%
YoY Change
-10 bps
Operating Margin
Current Quarter
28.9%
Prior Year
28.3%
YoY Change
+60 bps
Net Margin
Current Quarter
24.9%
Prior Year
23.9%
YoY Change
+100 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Fitness
0.0%
N/A
Outdoor
0.0%
N/A
Aviation
0.0%
N/A
Marine
0.0%
N/A
Auto OEM
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Fitness
N/A———
Outdoor
N/A———
Aviation
N/A———
Marine
N/A———
Auto OEM
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

revenue
$7900000.0B
"9% increase over 2025"
pro forma EPS
$9.35
operating margin
25.5%
pro forma effective tax rate
16.0%

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

MANAGEMENT COMMENTARY

2025 was another year of remarkable growth and achievement for Garmin with record consolidated revenue, record revenue in all five of our segments, and record consolidated operating income.

— GARMIN LTD, Q4 FY2025 2025 Earnings Call

We attribute this strong performance to our strategic focus on market diversification and creating superior products that are essential to our customers’ lives.

— GARMIN LTD, Q4 FY2025 2025 Earnings Call

Looking forward, we anticipate building on this momentum with many exciting new product launches throughout the year.

— GARMIN LTD, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Units Shipped
20.0M
units

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.