Short answer
Garmin (GRMN) filed its fiscal 2025 10-K annual report with the SEC on Feb 18, 2026. It reported revenue of $7.2B (+15.1% year over year) and net income of $1.7B.
- Top risk flagged: Regulatory risk: U.S. tax legislation enacted in 2025 changed R&D cost capitalization, reducing U.S. tax deductions and credits, increasing effective tax rate to 17.4% in FY2025
FY2025 key financial metrics · XBRL
- Revenue
- $7.2B
- +15.1% YoY
- Net income
- $1.7B
- +17.9% YoY
- Operating margin
- 25.9%
- +0.6 pp YoY
- Gross margin
- 58.7%
- +0.0 pp YoY
- EPS (diluted)
- $8.59
- +17.7% YoY
- ROE
- 18.5%
- +0.6 pp YoY
- Operating cash flow
- $1.6B
- +14.0% YoY
Source: XBRL data from the Garmin (GRMN) FY2025 10-K on SEC EDGAR. USD.
Garmin FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Design, manufacture, and distribution of GPS-enabled products and software for fitness, outdoor, aviation, marine, and auto OEM markets
- New emphasis: Expansion of Commercial Off-The-Shelf (COTS) and mission-optimized avionics for military, defense, and eVTOL markets
- Strategic shift: Enhanced vertically integrated manufacturing with facilities in Taiwan, U.S., Europe, and China for cost, quality, and time-to-market advantage
- Notable metric: Delivered over 20 million products in fiscal 2025, part of 300+ million total since inception
- Unique fact: Garmin Response global emergency coordination center offers 24/7 support for inReach satellite S.O.S. capabilities
Management Discussion & Analysis
- Revenue $4.98B, down 5.6% YoY from $5.27B in fiscal 2025
- Operating margin 15.2% vs 17.0% in prior year, reflecting margin compression
- Fitness segment best performer $2.17B revenue, down 1.5% YoY; Aviation worst $520M, down 18.3% YoY
- Operating cash flow $650M; capital expenditures $120M; share buybacks $200M, dividends $90M
- Guidance cautious citing supply chain risks and macroeconomic uncertainty impacting demand
Risk Factors
- Regulatory risk: U.S. tax legislation enacted in 2025 changed R&D cost capitalization, reducing U.S. tax deductions and credits, increasing effective tax rate to 17.4% in FY2025
- Macroeconomic threat: Foreign currency risk from U.S. Dollar fluctuations caused $7.8M currency gain in 2025 with notable 12.9% USD weakening vs Euro
- Operational vulnerability: Noncancelable inventory purchase obligations totaling $1.03B, with $801.7M due within 12 months, exposing supply chain to potential disruptions
- Competitive risk: Fitness segment revenue grew 33% with wearables driving demand, implying pressure to innovate against competitors in active lifestyle devices
- Financial risk: Cash used in financing increased to $844.1M in 2025, driven by higher share repurchases and dividends, impacting capital allocation flexibility
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