Garmin Ltd. (NYSE:GRMN) stock tanked on Wednesday after the company reported its third-quarter 2025 results.
The company reported quarterly revenue growth of 12% year-on-year to $1.77 billion, beating the analyst consensus estimate of $1.76 billion.
The GPS navigation and wearable technology company's adjusted EPS of $1.99 topped the analyst consensus estimate of $1.96.
Also Read: Garmin’s Strong Auto, Outdoor Growth Drives Analyst Rating, Despite Softer Fitness, Marine Sales
Segment Performance
Revenue from Fitness increased by 30% Y/Y to $601.01 million, driven by strong demand for advanced wearables.
Outdoor revenue decreased by 5% Y/Y to $497.6 million, primarily due to comparison against strong prior year product launch cycles.
Aviation revenue rose 18% Y/Y at $240.45 million, driven by the OEM and aftermarket product categories.
Marine revenue increased by 20% Y/Y to $267.01 million, with growth across multiple categories.
Auto OEM revenue decreased 2% Y/Y to $164.84 million, as certain legacy programs approach end-of-life and were partially offset by growth in its most recent BMW domain controller program..
The gross margin decreased to 59.1% from 60.0% Y/Y. The operating margin declined to 25.8% from 27.6% Y/Y.
In the third quarter of 2025, the company generated $486 million in operating cash flow and $425 million in free cash flow.
It paid $173 million in dividends and repurchased $36 million in shares, leaving $107 million remaining in its $300 million buyback plan.
The company ended the quarter with $3.9 billion in cash and marketable securities.
Garmin CEO Cliff Pemble said the company is well prepared for the holiday season with a robust lineup of new products.
Outlook
Garmin reiterated revenue guidance of $7.10 billion versus the analyst consensus estimate of $7.13 billion.
It expects adjusted EPS of $8.15 (up from the prior estimate of $8.00) against the analyst consensus estimate of $8.11.
Price Action: GRMN stock was trading lower by 12.31% to $217.56 at last check Wednesday.
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