GRMN · Q3 2025 Earnings

Bullish

Garmin

Reported October 29, 2025

30-second summary

Garmin posted $1.77B in Q3 revenue (+12% YoY) with non-GAAP EPS of $1.99, and lifted FY25 EPS guidance to $8.15 from $8.00 while holding revenue at $7.1B. The story underneath the headline is bifurcation: Fitness ran +30% with a 32% segment operating margin, but Outdoor — historically the franchise anchor — declined 5% YoY, the first negative segment print in the coverage window. Auto OEM also turned negative (-2%) and went deeper into operating losses (-10% margin).

Headline numbers

EPS

Q3 FY2025

$1.99

Revenue

Q3 FY2025

$1.77B

+12.0% YoY

Gross margin

Q3 FY2025

59.1%

Free cash flow

Q3 FY2025

$0.42B

Operating margin

Q3 FY2025

25.8%

Key financials

Q3 FY2025

Metric	Q3 FY2025	YoY	Q2 FY2025	QoQ
Revenue	$1.77B	+12.0%	$1.81B	-2.5%
EPS	$1.99	—	$2.17	-8.3%
Gross margin	59.1%	—	58.8%	+30bps
Operating margin	25.8%	—	26.0%	-20bps
Free cash flow	$0.42B	—	$0.13B	+234.6%

Guidance

Full-year FY2025 EPS guidance raised to $8.15 (+1.9%) with operating margin expansion of 40 bps to 25.2%, while revenue and gross margin guidance held steady at $7.1B and 58.5% respectively.

Guidance is issued for both next quarter and the full year. Both may appear below.

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY 2025	$7.1 billion	$7.1 billion	$0.0 billion (reaffirmed at $7.1B)	Raised
EPS (non-GAAP)	FY 2025	$8.00	$8.15	+$0.15 (+1.9%)	Raised
Operating margin	FY 2025	24.8%	25.2%	+40 bps	Raised

Reaffirmed unchanged this quarter: Gross margin (58.5%), Pro forma effective tax rate (17.5%)

Segment performance

Q3 FY2025

Segment	Q3 FY2025	YoY
Fitness	$0.601B	+30.0%
Outdoor	$0.498B	-5.0%
Aviation	$0.24B	+18.0%
Marine	$0.267B	+20.0%
Auto OEM	$0.165B	-2.0%

Platform metrics

Q3 FY2025

Segment	Q3 FY2025
Cash and Marketable Securities	$3.9 billion

Profitability

Q3 FY2025

Segment	Q3 FY2025
Fitness Operating Margin	32%
Outdoor Operating Margin	34%
Aviation Operating Margin	25%
Marine Operating Margin	19%
Auto OEM Operating Margin	-10%

Other KPIs

Q3 FY2025

Segment	Q3 FY2025	YoY
Americas	$0.796B	+10.0%
EMEA	$0.693B	+13.0%
APAC	$0.283B	+14.0%
Dividend per Share (Quarterly)	$0.90	—
Share Repurchases (Q3)	$36 million	—

Management tone

No transcript available for Q3, so multi-quarter tone arc work is limited to written commentary. The press release language softened meaningfully: Q2's "exceeded our expectations" became Q3's "well positioned for the holiday selling season with a strong lineup of innovative products." That's standard pre-holiday framing, not the surprise-upside cadence of Q2. The decision to hold revenue at $7.1B while raising EPS suggests management is taking the margin upside but not extrapolating Q3's revenue trajectory into Q4 — implied Q4 revenue from $7.1B FY minus the nine-month run-rate is roughly $1.98B, below normal Q4 seasonality leverage.

Answers to last quarter's watch list

Fitness durability — Fitness grew 30% in Q3, comfortably above the 25% threshold from last quarter's watch. Operating margin held at 32% (vs. 33% in Q2). The product cycle isn't fading — it's normalizing off the +41% peak.

Resolved positively

EMEA momentum — EMEA decelerated from +25% to +13%. Still the second-fastest region, but the gap to Americas narrowed sharply (Americas +10%). This argues at least some of Q2's outperformance was timing or FX-flattered.

Resolved negatively

Gross margin trajectory — Consolidated gross margin came in at 59.1%, above both the Q2 print (58.8%) and the FY guide (58.5%, held). The H2 mix-compression worry didn't materialize.

Resolved positively

Marine — Marine accelerated to +20% from +10% in Q2 — the opposite of the feared deepening slowdown. Operating margin slipped to 19% from 21%, but the top line is the bigger signal.

Resolved positively

Auto OEM scale — Garmin didn't disclose design wins on the print, and the numbers got worse: revenue -2% YoY and operating margin -10% (vs. positive segment growth in Q2). The optionality narrative is weaker than a quarter ago.

Resolved negatively

What to watch into next quarter

Outdoor recovery or confirmation of decline — Q3 -5% is the first negative print in the coverage window. Watch whether Q4 returns to growth or whether two consecutive negative quarters force a re-rating of the segment's structural multiple.

Implied Q4 revenue — FY $7.1B minus 9M actuals implies roughly $1.98B in Q4. Holiday is Garmin's seasonal peak; a Q4 below $2.0B would be a soft outcome for the franchise.

Auto OEM operating loss trajectory — segment operating margin fell to -10% on declining revenue. Watch whether management addresses the operating-loss path or signals a strategic review.

Fitness margin stability — segment op margin slipped 100 bps QoQ (33% to 32%) on still-strong growth. Watch whether Q4 holds 32% or drifts lower as the engine of the FY raise.

EMEA decel — from +25% to +13% in one quarter. A third data point in Q4 tells you whether Q2 was the anomaly or Q3 is the new run-rate.

Sources

Garmin Q3 2025 press release: https://www.sec.gov/Archives/edgar/data/1121788/000119312525254600/grmn-ex99_1.htm
Tapebrief GRMN Q2-2025 brief (prior-quarter context)

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