Garmin Ltd. reported third‑quarter 2025 revenue of $1.77 billion, a 12% year‑over‑year increase, and operating income of $456.8 million, up 4% from the prior year. Net income rose to $401.6 million, giving a diluted earnings per share of $2.08, unchanged from the previous quarter. Cash and marketable securities totaled $3.9 billion at quarter‑end.
Segment results were mixed: fitness revenue climbed 30% to $601 million, outdoor revenue fell 5% to $498 million, aviation revenue grew 18% to $240 million, marine revenue increased 20% to $267 million, and auto OEM revenue slipped 2% to $165 million. The decline in the outdoor segment reflects the timing of the Fenix 8 Pro launch late in the quarter, which pushed strong prior‑year sales into the current period, while the auto OEM dip is attributed to the end of legacy programs, though new initiatives such as a domain controller partnership with BMW are underway.
Garmin introduced several new products, including the Edge 550 and Edge 850 cycling computers, the Bounce 2 smartwatch, the Venu 4, and the first‑ever Fenix 8 Pro with inReach satellite connectivity. The company also announced a partnership with King’s College London to supply its smartwatch platform for the EMBRACE research program, expanding its presence in clinical studies.
The company raised its full‑year 2025 revenue guidance to $7.10 billion and pro‑forma earnings per share to $8.15, reflecting stronger demand and improved operating leverage. Operating margin is now projected at 25.2% versus 24.1% in the prior year. Q3 operating margin was 25.8%, a 180‑basis‑point decline from the prior quarter, driven by a 90‑basis‑point drop in gross margin due to higher product costs and a stronger Taiwan dollar.
Garmin declared a quarterly dividend of $0.90 per share, payable on December 26 2025, and completed a $36 million share‑repurchase during the quarter. Free cash flow for the quarter was $425 million, supporting continued capital returns and investment in product development.
Management highlighted that the company’s focus on high‑margin segments, cost controls, and product innovation underpins the positive outlook, while acknowledging the need to address the temporary headwinds in the outdoor and auto OEM segments.
The company’s competitive landscape remains intense, with rivals such as Apple, Samsung, and Fitbit, but Garmin’s specialization in aviation, marine, and high‑end fitness/outdoor markets, along with its vertically integrated design and manufacturing, continue to differentiate it.
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