Garmin shares surge as record wearables demand drives Q4 beat

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.