February 24, 2026

Reports record fourth quarter and full-year revenue and profit, proposes a 17% dividend increase, and announces new $500 million share repurchase program

On February 18, 2026, Garmin Ltd. (NYSE: GRMN), announced results for the fourth quarter ended December 27, 2025.

Highlights for fourth quarter 2025 include:

              • Consolidated revenue of $2.12 billion, a 17% increase compared to the prior-year quarter

              • Gross margin of 59.2% compared to 59.3% in the prior-year quarter

              • Operating margin expanded to 28.9% compared to 28.3% in the prior-year quarter

              • Operating income was $614 million, a 19% increase compared to the prior-year quarter

              • GAAP EPS of $2.73 and pro forma EPS(1) of $2.79, representing 16% growth in pro forma EPS over the prior-year quarter

              • Launched the GPSMAP® 9000xsv series of superior chartplotters designed for captains and anglers that demand world-class performance

              • Announced collaboration with Truemed to assist customers who wish to use pre-tax Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) for qualifying purchases of select Garmin products

              • Enhanced Garmin Connect+ with nutrition tracking and insights powered by AI-based Garmin Active IntelligenceTM to help users achieve nutrition goals

              • Honored with five Consumer Electronic Show (CES) 2026 Innovation Awards for ground-breaking achievements in technology across various categories

Highlights for fiscal year 2025 include:

                            • Achieved record consolidated revenue of $7.25 billion, a 15% increase compared to the prior year

                            • All segments posted record full-year revenue

                            • Shipped over 20 million units, a new record

                            • Gross margin of 58.7% consistent with the prior year

                            • Operating margin expanded to 25.9% compared to 25.3% in the prior year

                            • Record operating income of $1.88 billion, an 18% increase compared to the prior year

                            • GAAP EPS of $8.59 and record pro forma EPS(1) of $8.56, representing 16% growth in pro forma EPS over the prior year

Executive Overview from Cliff Pemble, President and Chief Executive Officer:


“2025 was another year of remarkable growth and achievement for Garmin with record consolidated revenue, record revenue in all five of our segments, and record consolidated operating income. We attribute this strong performance to our strategic focus on market diversification and creating superior products that are essential to our customers’ lives. Looking forward, we anticipate building on this momentum with many exciting new product launches throughout the year. I am very proud of what we accomplished in 2025 and look forward to seizing the opportunities ahead.” – Cliff Pemble, President and Chief Executive Officer of Garmin Ltd.

Fitness:

Revenue from the fitness segment increased 42% in the fourth quarter primarily due to strong demand for wearables driven by both market share gains and market growth. Gross and operating margins were 59% and 34%, respectively, resulting in $257 million of operating income. During the quarter, we announced our collaboration with healthcare payments provider Truemed to assist customers who wish to use pre-tax HSA/FSA funds for qualifying purchases of select Garmin products. We recently published our annual Garmin ConnectTM Data Report which shows that, on average, our users increased activity levels by 8% during the year reflecting a high level of engagement with our products and app platforms. At the recent CES, the Venu® 4 and Forerunner® 970 received Innovation Awards for novel features in digital health and fitness, and we announced exciting enhancements to our premium Connect+ offering with nutrition tracking and insights powered by AI-based Garmin Active Intelligence to help users achieve nutrition and overall wellness goals.

Outdoor:

Revenue from the outdoor segment was flat when compared to the prior year quarter as we compare against strong prior year product launch cycles. Gross and operating margins were 66% and 37%, respectively, resulting in $234 million of operating income. During the quarter we launched the Garmin DriveTrackTM 72, a multifunction GPS navigator that tracks up to 20 dogs. Also, during the quarter, we launched the inReach® Mini 3 Plus satellite communicator with voice, text and photo sharing. This compact and rugged communicator offers essential SOS safety features and helps explorers stay connected with loved ones while adventuring beyond cellphone coverage. Several outdoor products received CES Innovation Awards including the fēnix® 8 Pro- MicroLED, the BlazeTM Equine Wellness System and the DescentTM S1 Buoy which highlights our commitment to explore new product categories and develop ground-breaking technologies.


Aviation:

Revenue from the aviation segment increased 16% in the fourth quarter with growth contributions from both the OEM and aftermarket product categories. Gross and operating margins were 76% and 31%, respectively, resulting in $85 million of operating income. During the quarter, we launched the D2TM Air X15 and the D2 Mach 2, our latest aviator smartwatches with cockpit connectivity and advanced aviation, health, fitness and smartwatch features. Also, we announced that the Garmin G5000HTM cockpit system was selected for Brazilian Air Force UH-60 Black Hawk helicopters, part of a growing list of military modernization programs based on our advanced commercially available integrated cockpit systems. Our Garmin Autoland system was used for the first time to return an aircraft safely to the ground following an in-flight malfunction, demonstrating the extraordinary potential of this ground-breaking system to improve aviation safety and save lives.

Marine:

Revenue from the marine segment increased 18% in the fourth quarter with growth across multiple categories led by chartplotters. Gross and operating margins were 52% and 18%, respectively, resulting in $52 million of operating income. During the quarter, we expanded our chartplotter lineup with the flagship GPSMAP 9000xsv, offering stunning 4K resolution displays, 5Ghz Wi-Fi networking, and industry-leading sonar performance. Also, during the quarter, we launched Garmin OnBoardTM, a versatile man overboard and engine cutoff solution for boaters that uses wireless technology, offering users the freedom to move around the boat while still enjoying the protection of this important safety system. Garmin OnBoard was selected as the winner of the Safety & Security Aboard category in the 2025 DAME Design Award. Additionally, we were awarded a 2025 National Boating Safety Award from the Sea Tow Foundation and were named Most Innovative Marine Company by Soundings Trade Only.

Auto OEM:

Revenue from the auto OEM segment decreased 3% during the fourth quarter as certain legacy programs approach end-of-life and were partially offset by growth in our most recent BMW domain controller program. Gross margin was 17%, and we recorded an operating loss of $14 million in the quarter. At the recent CES, we introduced our next-gen Garmin Unified CabinTM domain controller that adds digital key capability, seat specific audio/video, and an AI assistant designed to make vehicle interactions more conversational and powerful. We also announced our collaboration with Meta to explore new ways of interacting with the automobile.


Additional Financial Information:

Total operating expenses in the fourth quarter were $644 million, a 14% increase over the prior year. Research and development increased 14% primarily due to engineering personnel costs. Selling, general and administrative expenses increased 14%, driven primarily by increased advertising investments and personnel related costs.

The effective tax rate in the fourth quarter was 16.8% compared to the effective tax rate of 15.6% in the prior year quarter. The increase in the current quarter effective tax rate compared to the prior year is primarily due to the new U.S. tax legislation, resulting in a reduction in U.S. tax deductions and credits.

In the fourth quarter of 2025, we generated operating cash flow of $554 million and free cash flow(1) of $430 million. We paid a quarterly dividend of approximately $173 million and repurchased $51 million of the Company’s shares within the quarter. We ended the quarter with cash and marketable securities of approximately $4.1 billion.

(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma effective tax rate and free cash flow.

2026 Fiscal Year Guidance(2):

We expect full-year 2026 revenue of $7.9 billion, an increase of 9% over 2025. We expect our full-year pro forma EPS to be $9.35 based upon gross margin of 58.5%, operating margin of 25.5% and pro forma effective tax rate of 16.0%.