Garmin Ltd. has reported record Q3 revenue and stronger-than-expected profits, with its Fitness, Marine and Aviation divisions powering growth. The performance reflects renewed momentum in connected fitness and wearables as the brand expands deeper into lifestyle and athleisure markets.

Revenues for Q3 2025 amounted to $1.77 billion, after a 12 percent year-over-year increase, and mark a new quarterly record. Operating income rose 4 percent to $457 million with a margin of 25.8 percent, while diluted EPS held steady at $2.08. The company generated $486 million in operating cash flow and raised its full-year outlook to $7.1 billion in revenue and $8.15 EPS.

By the numbers

  • The Fitness segment led the charge, with a 30 percent jump to $601 million, fueled by surging demand for advanced wearables like the Venu 4 smartwatch and Edge 550/850 cycling computers. This reflects consumers’ growing appetite for multifunctional devices that blend training analytics with everyday usability.
  • Marine and Aviation also delivered strong performances, rising 20 percent to $267 million and 18 percent to $240 million respectively, as Garmin’s diversified portfolio continued to drive growth across categories.
  • By contrast, the Outdoor segment softened by 5 percent to $498 million – a normalization after the pandemic-era boom in adventure gear. This signals a broader shift in discretionary spending towards personal health and connected fitness.
  • Profitability remained robust, with gross margin at 59.1 percent and operating margin at 25.8 percent. This underscores the company’s ability to maintain premium pricing while investing heavily in R&D and innovation.

Diversification shields sporting goods brands

Garmin’s strong quarter underscores how sporting goods brands with diversified portfolios are weathering the slowdown in outdoor hardgoods – by leaning on fitness, digital ecosystems and lifestyle integration.

As smartwatches and fitness tech continue to overlap with athleisure and wellness, Garmin’s ecosystem strategy – connecting performance devices with training and health services – positions it closer to lifestyle and fashion tech players like Apple and Whoop.

The big picture: Tech and training converge

The Fitness division’s surge signals a growing consumer preference for premium, multifunctional wearables that blend training analytics with everyday usability.

In contrast, Outdoor’s softness highlights a post-pandemic normalization, as discretionary spending shifts from adventure gear to personal health, home training and hybrid fitness – a trend mirrored across the wider sporting goods industry.

CEO commentary

Cliff Pemble, Garmin’s President and CEO, said the company is “well positioned for the holiday season,” with a broad lineup of innovative products and a solid innovation pipeline in every business segment.

The SGI Europe take

Garmin’s strong Q3 shows the power of diversification across Fitness, Marine and Aviation. The company’s pivot toward connected, design-led products reflects a broader industry shift: the fusion of performance, health and lifestyle at the heart of modern athleisure.

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