It has been about a month since the last earnings report for Garmin (GRMN Quick QuoteGRMN - Free Report) . Shares have added about 10.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Garmin due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Garmin's Q2 Earnings Beat Expectations, Revenues Increase Y/Y

Garmin 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’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. Garmin now anticipates pro forma EPS to be $8.00, up from the earlier projection of $7.80.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

VGM Scores

At this time, Garmin has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Garmin has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Garmin belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, Flex (FLEX Quick QuoteFLEX - Free Report) , has gained 9.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Flex reported revenues of $6.58 billion in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.72 for the same period compares with $0.51 a year ago.

Flex is expected to post earnings of $0.75 per share for the current quarter, representing a year-over-year change of +17.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Flex has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.