Garmin Shares Rise on Strong Q2 Results and Raised Full-Year Outlook
Shares of Garmin (GRMN) surged by over 16% after the company reported better-than-expected financial results for its fiscal second quarter. Revenue rose to $2 billion, up 11% year-over-year, driven primarily by a significant increase in marine and fitness product sales. Marine revenue climbed 14% to $341 million while fitness revenue jumped 25% to $757 million due to new product launches like the Garmin Signal VHF radios and Forerunner smartwatches. Garmin also reported strong margin expansion, with its gross margin increasing by 3.6 percentage points to 62.4%. This was attributed in part to tariff refunds and a more favorable product mix. Operating income rose 30% year-over-year to $616 million, while adjusted earnings per share increased 29% to $2.81 — well above the expected $2.29. Encouraged by these results, Garmin raised its full-year revenue forecast from $7.9 billion to $8.05 billion and expects adjusted EPS of $10 compared to a prior estimate of $9.35. CEO Cliff Pemble expressed confidence in continued growth driven by the fitness segment.
Tickers: $GRMN
Topics: financial_performance profit_margin_expansion revenue_growth