Wall Street Is Losing Its Mind Over Garmin's Q4 Blowout

"Garmin ( NYSE: GRMN) delivered a decisive Q4 2025 earnings beat this morning, reporting pro forma EPS of $2.79 that surged past the $2.40 consensus estimate by 16%. The GPS and wearables technology leader posted $2.12 billion in quarterly revenue, up 16.6% year-over-year, capping a record-breaking fiscal year that saw all five business segments achieve new revenue highs."

"Garmin's Q4 results reflect accelerating momentum across its diversified business model. Operating margin expansion of 60 basis points demonstrates improved operational leverage, while the company maintained its characteristically strong gross margins near 60% despite competitive pressures in consumer electronics. The 21.3% surge in net income outpaced revenue growth, signaling effective cost management and scale benefits. For the full year, Garmin achieved $7.25 billion in consolidated revenue (up 15%) and shipped more than 20 million units, a company record. Operating cash flow for the year reached $1.63 billion, up 14%, while the balance sheet strengthened with $4.1 billion in cash and marketable securities."

"2025 was another year of remarkable growth and achievement for Garmin with record consolidated revenue, record revenue in all five of our segments, and record consolidated operating income. We attribute this strong performance to our strategic focus on market diversification and creating superior products that are essential to our customers' lives. Looking forward, we anticipate building on this momentum with many exciting new product launches throughout the year. I am very proud of what we accomplished in 2025"

Garmin delivered a strong Q4 with pro forma EPS of $2.79, a 16% beat, and $2.12 billion in revenue, up 16.6% year-over-year. Net income rose 21.3% to $528.7 million and operating margin expanded to 28.9%, while gross margins remained near 60%. Full-year consolidated revenue reached $7.25 billion (up 15%) with more than 20 million units shipped and record consolidated operating income. Operating cash flow increased 14% to $1.63 billion and cash plus marketable securities totaled $4.1 billion. Shares reacted positively, rising about 12.2%, and management signaled continued product launches and market diversification to sustain momentum.

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