Garmin (GRMN) Q3 2025 earnings summary

Executive summary

• Achieved record third-quarter revenue of $1.77 billion, up 12% year-over-year, and record operating income of $457 million, up 4% year-over-year, driven by double-digit growth in Fitness, Aviation, and Marine segments.

• Pro forma EPS for the quarter was $1.99; GAAP EPS was $2.08; full-year EPS guidance raised to $8.15.

• Net income for Q3 2025 was $401.6 million.

• Launched several innovative products, including the fēnix 8 Pro smartwatch, new cycling computers, and expanded aviation and marine offerings.

• Named 2025 Manufacturer of the Year by the National Marine Electronics Association for the 11th consecutive year.

Financial highlights

• Q3 2025 revenue grew 12% year-over-year to $1.77 billion; operating income increased 4% to $457 million.

• Gross margin was 59.1%, down 90 basis points year-over-year; operating margin was 25.8%, down 180 basis points.

• Free cash flow for Q3 was $425 million; operating cash flow was $486 million.

• Total operating expenses increased 15% year-over-year, mainly due to higher personnel costs.

• Cash and marketable securities totaled $3.9 billion at quarter end.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $7.1 billion; gross margin expected at 58.5% and operating margin at 25.2%.

• Pro forma EPS guidance increased to $8.15; pro forma tax rate expected at 17.5%.

• Segment revenue growth estimates: Fitness 29%, Outdoor 3%, Aviation 10%, Marine 10%, Auto OEM 8%.

• Management expects existing cash balances and operating cash flow to be sufficient for both short- and long-term needs.

• Net cash outlays for income taxes in 2025 are projected to be lower than previously anticipated due to recent U.S. tax legislation.