Total Revenue

11% increase

Total Revenue for Q1 2025 reached $1,535.1 million, up 11% YoY, continuing the strong momentum seen in FY 2024 where segmented growth drove overall performance. Strong organic growth across key product categories, such as advanced wearables and outdoor devices, further reinforced the previous period's growth trends. " "

Auto OEM Revenue

31% increase

Auto OEM revenue surged by 31% YoY to $169.3 million. This is a continuation of the robust performance seen in FY 2024 (which had a 44% increase) driven by increased shipments of domain controllers and BMW program expansion, albeit with a slight moderation due to a softer global OEM landscape. " "

Outdoor Segment

19% increase

Outdoor revenue increased by roughly 19% YoY to $438.5 million, reflecting persistent demand for adventure watches and successful new product launches such as the Approach R50 and Descent X50i. This growth builds on the previous period’s 16% increase and highlights sustained consumer interest and product innovation. " "

EMEA Revenue

23% increase

EMEA revenue jumped by about 23% YoY to $568.95 million. Benefiting from the strong segment performances (notably in Fitness and Outdoor) during FY 2024 — which previously recorded a 31% increase — the regional growth continued with targeted product launches and expanded distribution. " "

Net Sales

11% increase

Net sales increased by approximately 11% YoY to around $1,535.1 million, underscoring Garmin’s consistent ability to grow revenue through broad-based demand and an enhanced product mix that builds on previous period gains. " "

Net Income

21% increase

Net income improved by about 21% YoY to $332,769 thousand, driven by higher gross margins, improved operating efficiencies, and increased revenue which built on the strong FY 2024 performance marked by substantial operating income gains and margin expansions. " "

Revenue ($USD Billions)

FY 2025

$6.8 billion "

$6.85 billion "

raised

Gross Margin (%)

FY 2025

58.7% "

58.5% "

lowered

Operating Margin (%)

FY 2025

25% "

24.8% "

lowered

Pro Forma Effective Tax Rate (%)

FY 2025

16.5% "

16.5% "

no change

Pro Forma EPS ($USD)

FY 2025

$7.80 "

$7.80 "

no change

Consumer Demand

Consistently described as strong and robust across Q2, Q3 and Q4 with healthy registrations, clean sell-through and diversified customer base ( " " , " " " , " ).

Q1 2025 continues to report robust demand with solid sell-through and registrations, but includes a modest reduction in guidance as a precaution due to a fluid global trade environment ( " " ).

Steady bullish consumer demand with slight caution due to external trade concerns.

Market Share Expansion

Repeatedly highlighted in Q2, Q3, and Q4 with gains in wearables, marine, dashcam and aviation segments ( " " " , " " , " ).

Q1 2025 emphasizes further market share gains, notably a 12% growth in the Fitness segment and strategic pricing to mitigate tariff impacts ( " " ).

Consistent expansion across segments with ongoing reinforcement, particularly in wearables.

Margin Performance and Cost Management

Q2 through Q4 detailed strong cost management and margin improvements, with significant gross and operating margin expansions driven by scale effects and product mix adjustments ( " , " , " " , " ).

Q1 2025 reports a 50 basis point gross margin decline (57.6%) primarily due to segment mix issues while cost management efforts continue via tariff mitigations and operational adjustments ( " ).

Continued focus on cost management but with emerging margin pressures in specific segments.

Product Innovation and New Product Launches

Q2, Q3 and Q4 consistently showcased robust product launches across segments – from wearable innovations (fenix 8, Lily Active) to new marine and aviation products, reinforcing the portfolio’s depth ( " " , " " , " " ).

Q1 2025 features multiple new launches including Garmin Connect+ and advanced smartwatches (vívoactive 6), new outdoor products like Instinct 3 Adventure, and innovative marine offerings such as the Force Pro trolling motor ( " " ).

Sustained innovation remains a key growth driver, with expanded product initiatives across segments.

Auto OEM Segment Performance and Future Outlook

Q2–Q4 discussions indicate strong revenue growth driven by domain controllers, albeit with moderating outlooks due to softening automaker sentiment and margin pressure, while targeting mid-teens gross margins ( " , " " , " " ).

In Q1 2025, the Auto OEM segment grew modestly (31% revenue increase to $169 million) with continued focus on domain controller deliveries and a maintained 7% revenue growth estimate despite moderated growth expectations and tariff challenges ( " " ).

Moderate and steady growth with cautious tone as segment adjusts for market and tariff headwinds.

Tariff Impact and Mitigation Strategies

Earlier periods (Q2 and Q3) had little to no detailed discussion; Q4 briefly acknowledged exposure without substantive quantification ( " ).

Q1 2025 offers a detailed discussion on tariffs: assuming a 10% baseline and an incremental 145% tariff on certain imports, estimating a $100 million cost impact, with multiple mitigation strategies including selective pricing adjustments and sourcing optimizations ( " " " " ).

Increased emphasis on tariffs, clearly articulating impact and mitigation plans compared to prior periods.

Subscription Revenue and Premium Offerings

Q3 mentioned incremental initiatives via paid apps and expanded inReach subscriptions, though Q4 had no specific commentary ( " ).

Q1 2025 launches Garmin Connect+, a premium service with AI-based health insights and enhanced features, and notes that subscription revenue will be separately reported once it reaches 10% of consolidated revenue ( " " ).

Growing focus on subscription models and premium offerings, marking a shift toward long‐term revenue diversification.

Pricing Strategy Adjustments

Q3 discussed leveraging premium pricing enabled by unique product differentiators, while Q2’s commentary was limited to promotional cadence ( " , " ).

Q1 2025 emphasizes that pricing adjustments are being evaluated on a case-by-case basis, particularly as a tool to mitigate tariff impacts, balancing market competitiveness and profit optimization ( " ).

Evolving pricing strategy driven by external pressures like tariffs, while maintaining premium positioning.

Inventory Management and Working Capital Trends

Across Q2, Q3 and Q4, there was a focus on increasing inventory to meet seasonal demand and manage working capital efficiently, with inventory levels and free cash flow being closely monitored ( " " , " , " ).

Q1 2025 continues the trend with increased inventory levels (approx. $1.6B) and adjustments in accounts receivable and capital expenditures, reflecting robust sales and channel constraints on stocking ( " ).

Consistently managed focus on inventory and working capital, reflecting stable operational discipline.