Garmin (GRMN) FY2025 10-K Annual Report

Filed: Feb 18, 2026
Health Care
Search, Detection, Navigation, Guidance, Aeronautical SysSEC EDGAR

Garmin (GRMN) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 18, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Garmin FY2025 10-K Analysis

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

Garmin FY2025 Key Financial Metrics
XBRL

Revenue

$7.2B

+15.1% YoY

Net Income

$1.7B

+17.9% YoY

Gross Margin

58.7%

+4bp YoY

Operating Margin

25.9%

+58bp YoY

Net Margin

23.0%

+55bp YoY

ROE

18.5%

+56bp YoY

Total Assets

$11.0B

+14.2% YoY

EPS (Diluted)

$8.59

+17.7% YoY

Operating Cash Flow

$1.6B

+14.0% YoY

Source: XBRL data from Garmin FY2025 10-K filing on SEC EDGAR. All figures in USD.

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