Impressive Q2 Earnings from Garmin
The latest quarterly stats from Garmin show record sales for the company. Of particular note is the performance of the Fitness division (Forerunner, Edge), now the largest division in Garmin.
(Garmin) delivered another quarter of outstanding financial results with double-digit growth in every segment…pleased with our results so far in 2025, which have exceeded our expectations. [Pemble, CEO]
Fitness: Revenue from the fitness segment increased 41% in the second quarter… Gross and operating margins were 60% and 33%, respectively, …During the quarter, we launched the Forerunner 570 and Forerunner 970 …Also during the quarter, we launched the new Venu X1 with an ultrathin case and a class-leading 2-inch display…We also launched the Index Sleep Monitor, our first smart sleep band…
Outdoor: Revenue from the outdoor segment increased 11% in the second quarter primarily due to growth in adventure watches. Gross and operating margins were 66% and 32%, respectively, …During the quarter, we launched the Instinct 3 Tactical Edition, adding a bright AMOLED display and metal-reinforced bezel, a built-in LED flashlight, and a rucking activity…
Garmin Acquires MyLaps – what this means for our watches and bike computers
Looking at the various regional pictures, EMEA’s growth of 25% is strong and consistent with the previous quarter’s increases. The big change is, as expected, probably a wider economic rebound from the softening of US import tariffs. The tariff-rebound effect might lead to weaker Q3 growth.
Garmin’s cashflow weakened slightly but that’s not overly relevant (see comments) as its overall cash (and similar) position increased slightly, remaining at over 2 billion dollars.
Against Expectations
Good growth is one thing, but it only affects the share price if it differs from expectations. Bigger impacts on share prices are often from changes to forward-looking stats.
On the day Garmin released its financials, the NASDAQ, probably a better comparator than the NYSE, where Garmin is listed, continued a broadly steady rise. However, at one point, Garmin’s stock was down about 10% upon the release of these financials. So there is obviously something amiss, perhaps the analysts expected even better figures than we see here?
Anecdote
I have talked to a few people at Garmin who confirmed that, at least in the UK, sales of the Forerunner 970 exceeded expectations at launch. Demand was very high and led to OOS situation. The same wasn’t said about the 570.
The Index sleep Band and Venu X2 also were launched to a very good reception by Garmin’s media channels. I don’t have any specific insights into how well those models contributed to actual sales, as opposed to column inches.
Take Out
Everything considered, that was good. The future looks more worrying.
Looking ahead to the remainder of 2025, we can hopefully expect significant product launches (Fenix 8 Pro, Edge 850, a fall smart watch or two), iterating previous models, new niche products (Varia vision), and new technologies (MicroLED, 4G LTE), potentially adding interesting revenue streams.
The macroeconomic conditions might suggest trickier times for Garmin, especially in the USA, but the company innovates with huge R&D budgets to give differentiated products that the top end of the market wants to buy. Garmin’s typical customer will likely be less squeezed than others.
sources & Resources
Garmin Growth surprises the Market – Q3.2024 Earnings results are in.
Last Updated on 26 January 2026 by the5krunner
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tfk is the founder and author of the5krunner, an independent endurance sports technology publication. With 20 years of hands-on testing of GPS watches and wearables, and competing in triathlons at an international age-group level, tfk provides in-depth expert analysis of fitness technology for serious athletes and endurance sport competitors.
Small correction: “Garmin’s cash position weakened slightly” is incorrect. The cash position actually stayed the same – and improved by $87m when taking into account marketable securities:
Cash and cash equivalents $ 2,072,208 $ 2,079,468
Marketable securities 515,038 421,270
The table/exhibit you posted is not cash position (which is a balance sheet item) but rather for (free) cash _flow_ during the period. And even then, the decline in free cash flow is quite benign because it is mostly due to a significant (> $200m) net increase in inventories – no doubt connected to the new device launches and in order to avoid OOS situations, like noted for the FR970.
If you go to Garmin Forums and compare the comment sections of the 570 and 970, it’s staggering….either the 570 is perfect out of the box with no bugs whatsoever…or no one is buying it….I suppose the latter.
But it seems the the Sleep Index Band has been delivered to the early adopters, because the first complain are coming in…Did you get one? I wonder how much the band data will deviate from the watch data.
in the context of this artcile i dont know how garmin books its revenue
it could invoice trade buyers of Index as it ships bulk volumes
i dont plan to get one. but i might eventally. if it was designed for sport i would