Garmin (GRMN) Q4 2025 earnings summary

Executive summary

• Achieved record consolidated revenue of $7.25 billion for FY2025, up 15% year-over-year, with all business segments reaching record revenue levels and over 20 million units shipped.

• Fourth quarter revenue exceeded $2.12 billion, a 17% increase year-over-year, marking the first quarter above $2 billion.

• Operating income reached $1.88 billion for FY2025, up 18%, with pro forma EPS of $8.56, a 16% increase.

• All five business segments posted record annual revenue, reflecting broad-based demand and successful product launches.

• Announced a proposed 17% dividend increase and a new $500 million share repurchase program.

Financial highlights

• FY2025 gross margin was 58.7%, consistent with prior year despite high tariffs; Q4 gross margin was 59.2%.

• FY2025 operating margin expanded to 25.9%, up 60 basis points; Q4 operating margin was 28.9%.

• Free cash flow for FY2025 was $1.36 billion; cash and marketable securities stood at $4.13 billion at year-end.

• GAAP EPS for FY2025 was $8.59; pro forma EPS was $8.56.

• Q4 operating cash flow was $554 million; Q4 free cash flow was $430 million.

Outlook and guidance

• FY2026 revenue expected to grow 9% to $7.9 billion, with operating income projected to exceed $2 billion.

• Gross margin guidance for FY2026 is 58.5%, slightly lower due to higher product costs.

• Pro forma EPS for FY2026 expected at $9.35, a 9% increase; pro forma tax rate projected at 16%.

• Fitness segment anticipated to be the strongest contributor to 2026 growth.

• Marine segment growth expected to be consistent with 2025; outdoor segment growth to accelerate in the back half of 2026.