Garmin Stock Drops After Strong Q2 Beat, Fitness And Outdoor Sales Surge, MYLAPS Acquisition

Garmin (NYSE:GRMN) stock initially gained and then tumbled on Wednesday after the company reported its second-quarter 2025 results.

The company reported quarterly revenue growth of 20% year-on-year to $1.815 billion, beating the analyst consensus estimate of $1.696 billion. 

The GPS navigation and wearable technology company’s adjusted EPS of $2.17 topped the analyst consensus estimate of $1.89. 

Also Read: Garmin’s Strong Auto, Outdoor Growth Drives Analyst Rating, Despite Softer Fitness, Marine Sales

Segments: Revenue from Fitness increased by 41% year-over-year to $605.43 million, driven by strong demand for advanced wearables. Outdoor revenue increased by 11% Y/Y to $490.36 million, primarily due to growth in adventure watches.

Aviation revenue rose 14% Y/Y at $249.37 million, driven by the OEM and aftermarket product categories. Marine revenue increased by 10% Y/Y to $299.26 million, with growth across multiple categories led by chartplotters. Auto OEM grew 16% Y/Y to $170.15 million, primarily driven by growth in domain controllers.

The gross margin increased to 58.8%, up from 57.3% Y/Y. The operating margin was 26.0% compared to 22.7% a year ago.

Garmin generated $127.5 million in free cash flow for the quarter, compared to $218.2 million a year ago. As of June 30, 2025, it held $3.9 billion in cash and equivalents.

M&A: Garmin has announced the acquisition of MYLAPS, a Dutch company known for its integrated timing, live tracking, and performance analysis tools that enhance the sports experience for millions of athletes and fans. The financial terms of the deal remain undisclosed. Operating across North America, Europe, Asia and Australia, MYLAPS provides data-driven technology solutions to top brands and race organizers in running, cycling, motorsports, and equestrian events. Headquartered in Haarlem, the Netherlands, MYLAPS employs over 200 full-time associates globally.

Garmin CEO Cliff Pemble stated that the company delivered another strong quarter, achieving double-digit growth across all segments. He attributed the performance to a robust lineup of innovative, highly differentiated products that continue to resonate with customers. Pemble added that Garmin’s results so far in 2025 have exceeded expectations, leading the company to raise its full-year guidance with increased confidence.

FY25 Outlook: Garmin now expects revenue of $7.10 billion (up from prior $6.85 billion) versus the analyst consensus estimate of $6.86 billion. It expects an adjusted EPS outlook of $8.00 (up from the prior estimate of $7.80) against the analyst consensus estimate of $7.93. 

Garmin stock surged over 16% year-to-date, topping the S&P 500 Consumer Discretionary Sector Index’s (where Garmin is a component) less than 1% negative returns. This was supported by the company’s strong financial performance, particularly in its fitness and outdoor segments, as well as a positive outlook.

Price Action: GRMN stock was down 7.23% at $222.01 as of 10:00 a.m. EST on Wednesday.

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