The company reported quarterly revenue growth of 17% year-on-year to $2.12 billion, beating the analyst consensus estimate of $2.02 billion.
The GPS navigation and wearable technology company’s adjusted EPS of $2.79 topped the analyst consensus estimate of $2.40.
Segment Performance
Revenue from Fitness increased by 42% Y/Y to $765.84 million, driven by strong demand for advanced wearables.
Outdoor revenue remained firm Y/Y at $627.61 million, primarily due to comparison against strong prior year product launch cycles.
Aviation revenue rose 16% Y/Y at $274.24 million, driven by the OEM and aftermarket product categories.
Marine revenue increased by 18% Y/Y to $296.91 million, with growth across multiple categories led by chartplotters.
Auto OEM revenue decreased 3% Y/Y to $160.36 million, as certain legacy programs approach end-of-life and were partially offset by growth in its most recent BMW domain controller program.
Margins And Cash Flow
The gross margin decreased slightly to 59.2% from 59.3% Y/Y. The operating margin expanded to 28.9% from 28.3% Y/Y.
In the fourth quarter of 2025, the company generated $554 million in operating cash flow and $430 million in free cash flow.
It paid $173 million in dividends and repurchased $51 million in shares.
The company ended the quarter with $4.1 billion in cash and marketable securities.
Dividend And Buyback
The Board of Directors plans to hike the quarterly dividend per share by 17% to $1.05.
On February 13, 2026, the Board authorized the company to repurchase up to $500 million of its shares through December 30, 2028, pursuant to a new share repurchase program effective February 20, 2026.
This new share repurchase program replaces the $300 million share repurchase program authorized by the Board on February 16, 2024.
CEO Cliff Pemble credited the quarterly performance to the company’s strategic focus on market diversification and creating essential products for customers. Looking ahead, Garmin plans to build on this momentum with exciting new product launches throughout the year, he added.
Outlook
Garmin expects 2026 revenue of $7.900 billion versus the analyst consensus estimate of $7.631 billion.
It expects adjusted EPS of $9.35 against the analyst consensus estimate of $8.70.
GRMN Price Action: Garmin shares were up 10.10% at $238.90 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo-by-Dontree_M-via-Shutterstock
