Garmin (NYSE:GRMN) reported fourth-quarter financial results that significantly outpaced Wall Street expectations, propelled by explosive growth in its fitness segment and a record-breaking performance across nearly its entire product portfolio.
The navigation and wearable technology pioneer posted record fourth-quarter revenue of $2.12 billion, a 17 percent increase from the prior-year period.
This performance comfortably cleared the $2.02 billion consensus estimate projected by analysts.
The surge was led by the fitness division, where revenue skyrocketed 42 percent year-over-year, driven by resilient demand for advanced running wearables and wellness-focused smartwatches.
On the bottom line, Garmin reported GAAP diluted earnings per share of $2.73 for the quarter.
On a pro forma basis, earnings reached $2.79 per share, handily beating the $2.40 analyst forecast.
For the full 2025 fiscal year, the company achieved record revenue of $7.25 billion and pro forma EPS of $8.56, both marking substantial double-digit growth over 2024 levels.
While the fitness, marine, aviation, and outdoor segments all reached record annual sales, the Auto OEM division remained a rare soft spot.
Revenue in that segment declined 3 percent during the quarter as legacy programs phased out, resulting in a $14 million operating loss.
However, management highlighted new collaborations with BMW and Meta as key pillars for the segment's future recovery.
Bolstered by $1.36 billion in full-year free cash flow, Garmin’s board of directors proposed a 17 percent increase to the annual dividend, raising it to $4.20 per share.
The board also authorized a new $500 million share repurchase program, signaling a robust commitment to shareholder returns after repurchasing $244 million in stock over the previous authorization cycle.
Looking toward 2026, CEO Cliff Pemble issued an optimistic outlook, guiding for revenue of $7.9 billion and pro forma EPS of $9.35.