Garmin (GRMN) Q4 2025 earnings summary

Executive summary

• Achieved record consolidated revenue of $7.25 billion for 2025, up 15% year-over-year, with all business segments reaching new highs and over 20 million units shipped.

• Fourth quarter 2025 revenue was $2.12 billion, up 17% year-over-year, with operating income of $614 million, up 19%.

• Operating income for 2025 reached $1.88 billion, up 18% year-over-year, with pro forma EPS of $8.56, a 16% increase.

• All five business segments posted record annual revenue, reflecting broad-based demand and successful product launches.

• Announced a proposed 17% dividend increase and a new $500 million share repurchase program.

Financial highlights

• FY2025 gross margin was 58.7%, consistent with prior year despite high tariffs; operating margin expanded to 25.9%.

• Q4 2025 gross margin was 59.2%; Q4 operating margin was 28.9%.

• Free cash flow for FY2025 was $1.36 billion, up $124 million year-over-year; cash and marketable securities stood at $4.1 billion at year-end.

• Q4 GAAP EPS was $2.73; FY2025 GAAP EPS was $8.59.

• FY2025 dividends paid totaled $664 million; share repurchases were $181 million; capital expenditures for FY2025 were $270 million.

Outlook and guidance

• FY2026 revenue expected to increase 9% to $7.9 billion, with operating income projected to exceed $2 billion.

• Gross margin for 2026 forecast at 58.5%, with operating margin at 25.5%.

• Pro forma EPS for 2026 expected to be $9.35, a 9% increase over 2025; pro forma effective tax rate projected at 16%.

• Free cash flow for 2026 projected at $1.4 billion, with capital expenditures of $400 million, mainly for a new Thailand facility.

• Dividend of $4.20 per share proposed for FY2026, payable in four installments.