Garmin, Ltd. raised its full-year guidance after reporting second-quarter results that came in well ahead of expectations. Revenues jumped 20 percent in the quarter, led by gains of 41 percent in the Fitness segment. Outdoor segment revenues grew 11 percent while Marine sales climbed 10 percent.

Garmin’s pro-forma EPS of $2.17 came in well ahead of analysts’ consensus target of $1.96. Sales of $1.81 billion topped analysts’ consensus estimate of $1.74 billion.

Highlights for the second quarter 2025 include:

  • Record consolidated revenue of $1.81 billion, a 20 percent increase compared to the prior year quarter;
  • Gross margin expanded to 58.8 percent compared to 57.3 percent in the prior year quarter;
  • Operating margin expanded to 26.0 percent from 22.7 percent in the prior year quarter;
  • Record operating income of $472 million, a 38 percent increase compared to the prior year quarter;
  • GAAP EPS of $2.07 and pro forma EPS of $2.17, representing 37 percent growth in pro forma EPS over the prior year quarter;
  • Launched the next-gen Forerunner 570 and Forerunner 970, adding new training tools and recovery insights;
  • Launched SmartCharts data-driven aviation charts tailored to simplify terminal procedures for pilots;
  • Announced Autoland was certified for the Cirrus SR Series G7+, the first piston powered aircraft with Garmin’s emergency landing system; and
  • Recently completed the strategic acquisition of MyLaps, which analyses sports timing and performance.

Cliff Pemble, president and CEO, said, “We delivered another quarter of outstanding financial results with double-digit growth in every segment, driven by our strong lineup of innovative and highly differentiated products that customers desire. We are very pleased with our results so far in 2025, which have exceeded our expectations and give us confidence to raise our full year guidance.”

Segment Performance

  • Fitness: Revenue from the fitness segment increased 41 percent in the second quarter with growth led by demand for advanced wearables. Gross and operating margins were 60 percent and 33 percent, respectively, resulting in $198 million of operating income. During the quarter, Garmin launched the Forerunner 570 and Forerunner 970 with new training features and personalized training plans from Garmin Coach for running and triathlons. Also during the quarter, Garmin launched the new Venu X1 with an ultrathin case and a 2-inch display and the Index Sleep Monitor, Garmin’s first smart sleep band.
  • Outdoor: Revenue from the outdoor segment increased 11 percent in the second quarter primarily due to growth in adventure watches. Gross and operating margins were 66 percent and 32 percent, respectively, resulting in $158 million of operating income. During the quarter, Garmin launched the Instinct 3 Tactical Edition, adding a Amoled display and metal-reinforced bezel, a built-in Led flashlight and a rucking activity. Also during the quarter, Garmin launched Tread 2, its latest all-terrain navigator.
  • Aviation: Revenue from the aviation segment increased 14 percent in the second quarter with growth contributions from both the OEM and aftermarket product categories. Gross and operating margins were 74 percent and 25 percent, respectively, resulting in $63 million of operating income. During the quarter, Garmin launched SmartCharts, offering real-time data for the specific aircraft and approach being flown. Also during the quarter, Garmin introduced the G5000 Prime integrated flight deck. Garmin also announced that the Garmin Autoland system was certified for the Cirrus SR G7+ Series, becoming the first piston-powered aircraft equipped with the system.
  • Marine: Revenue from the marine segment increased 10 percent in the second quarter with growth across multiple categories led by chartplotters. Gross and operating margins were 55 percent and 21 percent, respectively, resulting in $63 million of operating income. During the quarter, Garmin launched the GPSMAP 15×3 chartplotters, with a wide display. Also, Garmin launched Quatix 8, a smartwatch for mariners.
  • Auto OEM: Revenue from the auto OEM segment increased 16 percent during the second quarter primarily driven by growth in domain controllers. Gross margin was 17 percent and Garmin recorded an operating loss of $10 million in the quarter. Garmin recently shipped the one millionth BMW domain controller out of its U.S. manufacturing facility.

Additional Financial Information
Total operating expenses in the second quarter were $595 million, a 14 percent increase over the prior year. Research and development and selling, general and administrative expenses increased 14 percent and 15 percent, respectively, driven primarily by personnel-related costs.

The effective tax rate in the second quarter was 16.5 percent compared to the effective tax rate of 17.9 percent in the prior year quarter. The decrease in the current quarter is primarily due to an increase in uncertain tax position reserve releases as compared to the same period last year.

In the second quarter of 2025, Garmin generated operating cash flows of $173 million and free cash flow of $127 million. The company paid a quarterly dividend of approximately $173 million and repurchased $67 million of the company’s shares within the quarter, leaving approximately $143 million remaining as of June 28, 2025 in the $300 million share repurchase program authorized through December 2026. Garmin ended the quarter with cash and marketable securities of approximately $3.9 billion.

2025 Fiscal Year Guidance
Based on the performance in the first half of 2025, Garmin raised its full year 2025 guidance. It now anticipates revenue of approximately $7.1 billion and pro forma EPS of $8.00 based on gross margin of 58.5 percent, operating margin of 24.8 percent and a full-year tax rate of 17.5 percent. Previous guidance called for revenue of approximately $6.85 billion, pro-forma EPS of $7.80 based on gross margin of 58.5 percent, operating margin of 24.8 percent and a full-year tax rate of 16.5 percent.

Image courtesy Garmin