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Garmin Ltd. (GRMN) has announced its results for the second quarter of 2025, showcasing remarkable growth across multiple segments. The company exceeded expectations, reporting record revenues and earnings, prompting an upward revision of its full-year guidance.

Garmin Reports Solid Performance in Second-Quarter of 2025
 

Garmin’s second quarter of 2025 was marked by a robust financial performance, with consolidated revenue reaching a record $1.81 billion, a 20% increase from the previous year’s quarter. This figure surpassed the market expectation of $1.73 billion.

The company’s gross margin improved to 58.8%, up from 57.3% in the prior year, while the operating margin rose to 26.0% from 22.7%. Operating income also saw a significant boost, climbing to $472 million, a 38% increase year-over-year.

The earnings per share (EPS) for the quarter stood at $2.07 on a GAAP basis, and $2.17 on a pro forma basis, both exceeding the anticipated EPS of $1.96. This represents a 37% growth in pro forma EPS compared to the same quarter last year. Garmin’s success this quarter was driven by strong demand for its innovative products, including the newly launched Forerunner 570 and 970, as well as the SmartCharts aviation charts.

Each of Garmin’s segments contributed to the overall growth. The fitness segment saw a 41% increase in revenue, driven by advanced wearables, while the outdoor segment grew by 11% due to the popularity of adventure watches.

The aviation segment’s revenue increased by 14%, supported by both OEM and aftermarket product categories. The marine segment posted a 10% growth, led by chartplotters, and the auto OEM segment grew by 16%, primarily due to domain controllers.

Garmin Revises Full-Year Guidance Upwards Based on Strong H1 Performance
 

Based on the strong performance in the first half of 2025, Garmin has revised its full-year guidance upwards. The company now anticipates revenue of approximately $7.1 billion, with a pro forma EPS of $8.00. This optimistic outlook is supported by an expected gross margin of 58.5% and an operating margin of 24.8%. The full-year tax rate is projected to be 17.5%.

Garmin’s confidence in its future performance is bolstered by its strategic initiatives and product innovations. The recent acquisition of MYLAPS, a leader in sports timing and performance analysis, is expected to enhance Garmin’s competitive edge in the fitness segment. Additionally, the certification of Garmin’s Autoland system for the Cirrus SR Series G7+ aircraft marks a significant milestone in the aviation sector, showcasing the company’s commitment to safety and innovation.

The company remains committed to returning value to shareholders through its dividend program. The Board of Directors has scheduled the next dividend payment for September 26, 2025, with a payment of $0.90 per share. Garmin’s strong cash flow and financial position, with cash and marketable securities of approximately $3.9 billion, support its ability to invest in growth opportunities while maintaining shareholder returns. Overall, Garmin’s raised guidance reflects its confidence in sustaining growth across its diverse portfolio.

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