Garmin Ltd. reported a 20 percent year-over-year increase in second-quarter revenue to $1.81 billion, driven by double-digit growth across all segments. Net income rose 33 percent to $400.8 million, while operating income climbed 38 percent to $472.3 million. The company also raised its full-year revenue forecast to $7.1 billion, up from $6.7 billion previously.
Garmin Fitness revenue surged, Outdoor segment also with double-digit growth
Fitness revenue surged 41 percent to $605 million, buoyed by strong sales of wearables including the new Forerunner 570 and 970. Operating income in the segment hit $198 million, with a 33 percent margin.
The Outdoor segment grew 11 percent to $490 million, with operating income of $158 million and a 32 percent margin. Adventure watches and the launch of Tread 2 navigation devices contributed to the gains.
Aviation revenue rose 14 percent to $249 million, supported by demand across OEM and aftermarket channels. Marine sales increased 10 percent to $299 million, while Auto OEM revenue advanced 16 percent to $170 million, despite a segment operating loss of $10 million.
Geographic performance and regional trends
Garmin saw broad-based revenue growth across all major regions in the second quarter. Sales in EMEA (Europe, Middle East, and Africa) climbed 25 percent year-over-year to $677 million, driven by continued demand across both consumer and aviation categories. The Americas region, including North and South America, reported a 19 percent increase in sales to $878 million, reflecting strong results from the fitness and outdoor segments. Meanwhile, the Asia-Pacific region (APAC) posted a 16 percent rise to $259 million, supported by solid uptake of wearables and marine products.
Cash position and capital allocation
As of June 28, Garmin held approximately $3.9 billion in cash and marketable securities, underscoring its strong liquidity position. During the quarter, the company generated $173 million in operating cash flow and $127 million in free cash flow. Garmin returned capital to shareholders through a quarterly dividend payment of $173 million and repurchased $67 million in company stock. As of the end of the quarter, $143 million remained under its current $300 million share repurchase authorization, which runs through December 2026.
Revised outlook
The company now expects full-year EPS of $8.00 and a gross margin of 58.5 percent. A quarterly dividend of $0.90 per share is scheduled for Sept. 26. CEO Cliff Pemble stated, “Our strong product lineup continues to deliver exceptional results across all categories, supporting our confidence to raise guidance for the year.”
