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Garmin Q2 revenues rose 20% Y/Y to $1.81B, beating estimates on strength across Outdoor, Fitness and Aviation.
Fitness revenues jumped 41% Y/Y to $605.4M, while gross margin expanded 150 bps to 58.8%.
GRMN raised 2025 revenue guidance to $7.1B and EPS to $8.00, citing strong demand across product lines.
Garmin Ltd. (GRMN - Free Report) reported second-quarter 2025 pro forma earnings of $2.17 per share, which beat the Zacks Consensus Estimate by 10.7%. Moreover, the bottom line improved 37% on a year-over-year basis.
Net sales were $1.81 billion, which beat the Zacks Consensus Estimate by 4.4%. Moreover, the figure increased 20% from the year-ago quarter.
GRMN’s year-over-year growth in the top line was attributed to the solid momentum across the Outdoor, Fitness, Aviation, Marine and Auto OEM segments.
Outdoor (27% of Net Sales): The segment generated sales of $490.4 million in the reported quarter, up 11% year over year, primarily driven by strong performance in adventure watches. Operating income was $158 million, with a 32% operating margin. Our model estimate for the Outdoor segment was pegged at $469.1 million.
Fitness (33.4%): The segment recorded sales of $605.4 million, reflecting a 41% year-over-year increase, led by robust demand for advanced wearables. Operating income was $198 million, with a 33% operating margin. Our model estimate for the Fitness segment was pegged at $482.5 million.
Aviation (13.7%): The segment achieved sales of $249.4 million, up 14% year over year, fueled by strength in OEM and aftermarket product categories. Operating income came in at $63 million, with a 25% margin. Our model estimate for the Aviation segment was pegged at $245.8 million.
Marine (16.5%): Garmin posted sales of $299.3 million, up 10% year over year due to growth led by chartplotters. Operating income was $63 million, resulting in a 21% margin. Our model estimate for the Marine segment was pegged at $340.4 million.
Auto OEM (9.4%): Sales reached $170.2 million, marking a 16% year-over-year increase due to higher domain controller shipments. The segment posted an operating loss of $10 million, with a gross margin of 6%. Our model estimate for the Auto OEM segment was pegged at $185.5 million.
Garmin’s Operating Results
Gross profit grew 24% year over year to $1.07 billion in the second quarter. Garmin’s gross margin improved 150 basis points year over year to 58.8%.
GRMN’s operating expenses of $595 million grew 14% from the prior-year quarter.
Operating income rose 38% year over year to $472.3 million, while operating margin expanded 330 basis points to 26%.
Balance Sheet & Cash Flow of GRMN
As of June 28, 2025, Garmin held $2.59 billion in cash and marketable securities, down from $2.67 billion in the previous quarter.
During the second quarter, the company generated operating cash flow and free cash flow of $173 million and $127 million, respectively. In the first half of 2025, Garmin generated operating and free cash flows of $594 million and $508.2 million, respectively.
Garmin Updates Guidance for 2025
Buoyed by a strong second-quarter performance, Garmin raised revenues and EPS guidance for 2025. Garmin now expects 2025 revenues to be $7.1 billion, up from the previous guidance of $6.85 billion. The Zacks Consensus Estimate for the same is pegged at $6.85 billion, indicating a year-over-year increase of 8.7%.
Garmin now anticipates pro forma EPS to be $8.00, up from the earlier projection of $7.80. The Zacks Consensus Estimate for the same is pegged at $7.97, indicating a year-over-year increase of 7.9%.
However, it still expects a gross margin of 58.5% and an operating margin of 24.8% for 2025. The pro forma effective tax rate forecast has been increased to 17.5% from 16.5% projected earlier.
The Zacks Consensus Estimate for MKSI’s 2025 earnings has been revised upward over the past 30 days to $6.64 per share, which suggests a year-over-year increase of 0.9%. MKSI shares have lost 3.8% year to date.
The Zacks Consensus Estimate for KLA’s fiscal 2025 earnings has remained unchanged over the past 60 days at $32.56 per share, suggesting an increase of 36.73% from the year-ago quarter’s reported figure. KLA shares have rallied 46.8% year to date.
The Zacks Consensus Estimate for Tokyo Electron’s fiscal 2026 earnings has been revised upward over the past 30 days to $4.23 per share, reflecting 9.02% year-over-year growth. Tokyo Electron shares have risen 21.4% year to date.
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Garmin's Q2 Earnings Beat Expectations, Revenues Increase Y/Y
Key Takeaways
Garmin Ltd. (GRMN - Free Report) reported second-quarter 2025 pro forma earnings of $2.17 per share, which beat the Zacks Consensus Estimate by 10.7%. Moreover, the bottom line improved 37% on a year-over-year basis.
Net sales were $1.81 billion, which beat the Zacks Consensus Estimate by 4.4%. Moreover, the figure increased 20% from the year-ago quarter.
GRMN’s year-over-year growth in the top line was attributed to the solid momentum across the Outdoor, Fitness, Aviation, Marine and Auto OEM segments.
Garmin Ltd. Price, Consensus and EPS Surprise
Garmin Ltd. price-consensus-eps-surprise-chart | Garmin Ltd. Quote
Garmin’s Segmental Details
Outdoor (27% of Net Sales): The segment generated sales of $490.4 million in the reported quarter, up 11% year over year, primarily driven by strong performance in adventure watches. Operating income was $158 million, with a 32% operating margin. Our model estimate for the Outdoor segment was pegged at $469.1 million.
Fitness (33.4%): The segment recorded sales of $605.4 million, reflecting a 41% year-over-year increase, led by robust demand for advanced wearables. Operating income was $198 million, with a 33% operating margin. Our model estimate for the Fitness segment was pegged at $482.5 million.
Aviation (13.7%): The segment achieved sales of $249.4 million, up 14% year over year, fueled by strength in OEM and aftermarket product categories. Operating income came in at $63 million, with a 25% margin. Our model estimate for the Aviation segment was pegged at $245.8 million.
Marine (16.5%): Garmin posted sales of $299.3 million, up 10% year over year due to growth led by chartplotters. Operating income was $63 million, resulting in a 21% margin. Our model estimate for the Marine segment was pegged at $340.4 million.
Auto OEM (9.4%): Sales reached $170.2 million, marking a 16% year-over-year increase due to higher domain controller shipments. The segment posted an operating loss of $10 million, with a gross margin of 6%. Our model estimate for the Auto OEM segment was pegged at $185.5 million.
Garmin’s Operating Results
Gross profit grew 24% year over year to $1.07 billion in the second quarter. Garmin’s gross margin improved 150 basis points year over year to 58.8%.
GRMN’s operating expenses of $595 million grew 14% from the prior-year quarter.
Operating income rose 38% year over year to $472.3 million, while operating margin expanded 330 basis points to 26%.
Balance Sheet & Cash Flow of GRMN
As of June 28, 2025, Garmin held $2.59 billion in cash and marketable securities, down from $2.67 billion in the previous quarter.
During the second quarter, the company generated operating cash flow and free cash flow of $173 million and $127 million, respectively. In the first half of 2025, Garmin generated operating and free cash flows of $594 million and $508.2 million, respectively.
Garmin Updates Guidance for 2025
Buoyed by a strong second-quarter performance, Garmin raised revenues and EPS guidance for 2025. Garmin now expects 2025 revenues to be $7.1 billion, up from the previous guidance of $6.85 billion. The Zacks Consensus Estimate for the same is pegged at $6.85 billion, indicating a year-over-year increase of 8.7%.
Garmin now anticipates pro forma EPS to be $8.00, up from the earlier projection of $7.80. The Zacks Consensus Estimate for the same is pegged at $7.97, indicating a year-over-year increase of 7.9%.
However, it still expects a gross margin of 58.5% and an operating margin of 24.8% for 2025. The pro forma effective tax rate forecast has been increased to 17.5% from 16.5% projected earlier.
Zacks Rank and Other Stocks to Consider
Currently, GRMN carries a Zacks Rank #2 (Buy).
MKS Inc. (MKSI - Free Report) , KLA (KLAC - Free Report) and Tokyo Electron (TOELY - Free Report) are some other top-ranked stocks that investors can consider in the Zacks Electronics - Miscellaneous Products sector. MKS sports a Zacks Rank #1 (Strong Buy), while KLA and Tokyo Electron carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MKSI’s 2025 earnings has been revised upward over the past 30 days to $6.64 per share, which suggests a year-over-year increase of 0.9%. MKSI shares have lost 3.8% year to date.
The Zacks Consensus Estimate for KLA’s fiscal 2025 earnings has remained unchanged over the past 60 days at $32.56 per share, suggesting an increase of 36.73% from the year-ago quarter’s reported figure. KLA shares have rallied 46.8% year to date.
The Zacks Consensus Estimate for Tokyo Electron’s fiscal 2026 earnings has been revised upward over the past 30 days to $4.23 per share, reflecting 9.02% year-over-year growth. Tokyo Electron shares have risen 21.4% year to date.