Garmin Ltd. (NYSE:GRMN) shares climbed 5.4% on Wednesday after reporting second-quarter results that well exceeded analyst expectations, prompting the company to raise its full-year guidance. This strong performance was driven by robust demand across all of Garmin’s business segments.
The company, known for navigation and wearable technology, posted adjusted earnings of $2.17 per share, comfortably beating the analyst consensus of $1.86. Revenue hit a record $1.81 billion, topping the estimated $1.7 billion and reflecting a 20% increase year-over-year.
“We delivered another quarter of outstanding financial results with double-digit growth in every segment, driven by our strong lineup of innovative and highly differentiated products that customers desire,” said Cliff Pemble, President and CEO of Garmin.
The fitness segment led the charge with a 41% revenue increase. Other divisions also showed solid growth: outdoor up 11%, aviation 14%, marine 10%, and auto OEM 16%.
Gross margin expanded to 58.8% from 57.3% in the prior-year quarter, while operating margin improved to 26.0% from 22.7%.
In light of these results, Garmin raised its 2025 full-year forecast, now projecting revenue around $7.1 billion and adjusted EPS of $8.00. This outlook is based on an expected gross margin of 58.5% and an operating margin of 24.8%.
During the quarter, Garmin introduced several new products, including the next-generation Forerunner 570 and 970 watches with advanced training capabilities, as well as SmartCharts — described by the company as the first dynamic, data-driven aviation charts designed to simplify terminal procedures for pilots.
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