Garmin 2025 Q2 Earnings Beats Expectations as Net Income Soars 33%

Garmin (GRMN) reported its fiscal 2025 Q2 earnings on July 29, 2025. The company surpassed Wall Street expectations with adjusted earnings of $2.17 per share, outpacing analysts' forecasts of $1.90 per share. Garmin also raised its full-year guidance, now predicting revenue of $7.1 billion and pro forma EPS of $8.00, indicating strong sustained performance. This optimistic outlook reflects continued confidence in all business segments, driven by innovative product launches and increased consumer demand.

Revenue

Garmin's total revenue for 2025 Q2 grew by 20.4% to reach $1.81 billion, compared to $1.51 billion in 2024 Q2. The Fitness segment demonstrated remarkable growth, generating $605.42 million, while the Outdoor segment brought in $490.36 million. Aviation contributed $249.37 million, Marine achieved $299.26 million, and the Auto OEM segment added $170.15 million, contributing to a consolidated total.

Earnings/Net Income

Garmin's EPS climbed by 32.5% to $2.08 in 2025 Q2 from $1.57 in 2024 Q2, reflecting ongoing earnings growth. Net income increased by 33.3% to $400.82 million from $300.63 million in the previous year, showcasing strong operational performance.

Post-Earnings Price Action Review

Garmin has experienced positive stock price movements following strong earnings reports. Its strategy of purchasing shares after revenue increases and holding them for 30 days has consistently delivered impressive returns over the past three years. This approach has yielded a 52.72% return, significantly outperforming the benchmark return of 31.64%. With a compound annual growth rate (CAGR) of 12.43% and zero maximum drawdown, the strategy has proven effective, highlighting Garmin's solid financial management and growth potential. Investors have responded favorably to Garmin's earnings reports, reinforcing confidence in the company's strategic direction.

CEO Commentary

“We delivered another quarter of outstanding financial results with double-digit growth in every segment, driven by our strong lineup of innovative and highly differentiated products that customers desire. We are very pleased with our results so far in 2025, which have exceeded our expectations and give us confidence to raise our full year guidance,” said Cliff Pemble, President and Chief Executive Officer of Garmin Ltd.

Guidance

Garmin raised its full-year guidance following strong second-quarter performance, anticipating continued growth across all business segments. The company expects to maintain momentum driven by innovative product launches and increased demand, positioning itself favorably in the market.

Additional News

Garmin recently announced the strategic acquisition of MYLAPS, a prominent player in sports timing and performance analysis technology. MYLAPS, headquartered in Haarlem, Netherlands, offers integrated solutions for running, cycling, motorsports, and equine competitions, enhancing Garmin's presence in performance-focused training and race-day technology. This acquisition expands Garmin's reach across North America, Europe, Asia, and Australia, bringing over 200 full-time employees into its fold. Furthermore, Garmin's Board of Directors declared a quarterly dividend of $0.90 per share, with the next installment scheduled for December 26, 2025. The company also repurchased $67 million worth of shares, leaving $143 million remaining in the authorized buyback program through December 2026.