Financial Data and Key Metrics Changes - Consolidated revenue increased by 20% year over year, exceeding $1,800,000,000, setting a new second quarter record [4] - Gross margin expanded to 58.8%, a 150 basis point increase from the prior year [14] - Operating income reached $472,000,000, up 38% year over year, with a pro forma EPS of $2.17, up 37% year over year [4][14] - Full year revenue guidance updated to approximately $7,100,000,000, up from previous guidance of $6,850,000,000 [6][18] Business Segment Performance - **Fitness Segment**: Revenue increased by 41% to $605,000,000, driven by strong demand for advanced wearables [6][7] - **Outdoor Segment**: Revenue increased by 11% to $490,000,000, primarily from adventure watches [8] - **Aviation Segment**: Revenue increased by 14% to $249,000,000, with growth from both OEM and aftermarket products [9][10] - **Marine Segment**: Revenue increased by 10% to $299,000,000, led by chartplotters [11] - **Auto OEM Segment**: Revenue increased by 16% to $170,000,000, driven by increased shipments to BMW [12] Market Data and Key Metrics Changes - By geography, double-digit growth was achieved in all three regions: EMEA (25%), Americas (19%), and APAC (16%) [15] - The fitness segment's revenue growth estimate raised to 25% for the year, while outdoor and aviation segments maintained estimates of 10% and 7% respectively [7][11] Company Strategy and Industry Competition - The acquisition of MyLabs aims to enhance Garmin's offerings in timing and performance analysis for athletic events, expanding the addressable market [5] - Garmin is focusing on innovation and differentiation in product lines to capture market share in the growing wearable market [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer resilience and robust demand for differentiated products [5] - The company is preparing for future growth with new product launches and strategic investments [10][36] Other Important Information - Free cash flow for the second quarter was $127,000,000, a decrease from the prior year due to increased inventory [16] - The effective tax rate decreased to 16.5% from 17.9% in the prior year quarter [17] Q&A Session Summary Question: Impact of channel fill on fitness performance - Management indicated that channel fill was not a significant factor in driving outperformance, and there are no signs of stockpiling [22][23] Question: Full year outlook and operating profit guidance - Management explained that operating expenses are expected to increase due to R&D and SG&A, impacting operating profit leverage [25][26] Question: Garmin's growth paradigm and pricing power - Management believes Garmin is entering a new growth paradigm, with innovation driving higher price points rather than significant price hikes [35][39] Question: Opportunities from MyLabs acquisition - Management sees synergies in merging training and official timing experiences for competitive events [47] Question: Subscription momentum and working capital management - Management noted that subscription services are growing across all segments, and working capital is being managed as planned [73][76]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 20% to exceed $1,800,000,000, setting a new second quarter record [4] - Gross margin expanded to 58.8%, a 150 basis point increase year over year [15] - Operating income reached $472,000,000, up 38% year over year, with a pro forma EPS of $2.17, up 37% year over year [4][16] Business Segment Performance - **Fitness Segment**: Revenue increased by 41% to $605,000,000, driven by strong demand for advanced wearables, with operating income of $198,000,000 [6][8] - **Outdoor Segment**: Revenue grew by 11% to $490,000,000, with operating income of $158,000,000 [9] - **Aviation Segment**: Revenue rose by 14% to $249,000,000, with operating income of $63,000,000 [10] - **Marine Segment**: Revenue increased by 10% to $299,000,000, with operating income of $63,000,000 [12] - **Auto OEM Segment**: Revenue grew by 16% to $170,000,000, with a narrowed operating loss of $10,000,000 [14] Market Data and Key Metrics Changes - By geography, EMEA saw a 25% revenue growth, Americas 19%, and APAC 16% [17] - The company anticipates revenue growth estimates for the fitness segment to rise to 25%, outdoor to 10%, aviation to 7%, marine to 5%, and auto OEM to 10% for the year [8][10][12][14] Company Strategy and Industry Competition - The acquisition of MyLabs is expected to enhance Garmin's offerings in timing and performance analysis, expanding the addressable market [5] - The company is focused on innovation and differentiation in product lines to capture market share in the growing wearable market [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer resilience and robust demand for differentiated products [5] - Full year revenue guidance was updated to approximately $7,100,000,000, with a pro forma EPS of $8 [6][20] Other Important Information - The company reported a free cash flow of $127,000,000 for the quarter, with capital expenditures of approximately $46,000,000 [19] - The effective tax rate decreased to 16.5% from 17.9% year over year [19] Q&A Session Summary Question: Impact of channel fill on fitness performance - Management indicated that channel fill was not a significant factor in the fitness segment's outperformance, and there are no signs of stockpiling [25][26] Question: Drivers of operating profit guidance - Management explained that operating expenses are expected to increase due to R&D and SG&A, along with foreign currency impacts and the acquisition of MyLabs [28][30] Question: Garmin's growth paradigm - Management believes Garmin is entering a new higher revenue growth phase, driven by innovation and market opportunities [38][40] Question: Pricing power in consumer wearables - Management clarified that price increases are due to new product introductions rather than hikes on existing products, indicating strong demand for innovative offerings [42] Question: Opportunities from MyLabs acquisition - Management sees significant synergies in merging training and official timing experiences for competitive events [50][51] Question: Subscription momentum - Management noted that subscription services are growing across all segments, with a focus on building this revenue stream [76] Question: Working capital management - Management confirmed that working capital is on plan, with increased inventory to meet demand and mitigate potential tariff impacts [80]

Core Insights - Garmin reported revenue of $1.81 billion for the quarter ended June 2025, marking a 20.4% increase year-over-year and exceeding the Zacks Consensus Estimate of $1.74 billion by 4.41% [1] - The company's EPS for the quarter was $2.17, up from $1.58 in the same quarter last year, representing a surprise of 10.71% against the consensus estimate of $1.96 [1] Financial Performance Metrics - Fitness segment net sales reached $605.43 million, surpassing the average estimate of $513.54 million, reflecting a year-over-year increase of 41.3% [4] - Outdoor segment net sales were $490.36 million, slightly below the average estimate of $519.45 million, with a year-over-year change of 11.5% [4] - Auto OEM segment net sales totaled $170.15 million, exceeding the average estimate of $166.39 million, showing a 15.6% increase year-over-year [4] - Marine segment net sales were $299.26 million, slightly above the average estimate of $296.34 million, representing a 9.6% year-over-year change [4] - Aviation segment net sales reached $249.37 million, surpassing the average estimate of $242.18 million, with a year-over-year increase of 14.3% [4] Operating Income and Gross Profit - Fitness segment operating income was $197.63 million, significantly higher than the average estimate of $140.32 million [4] - Outdoor segment operating income was $157.88 million, below the average estimate of $185.99 million [4] - Aviation segment operating income reached $63.38 million, exceeding the average estimate of $55.4 million [4] - Marine segment operating income was $62.92 million, above the average estimate of $58.3 million [4] - Gross profit for the Fitness segment was $364.67 million, significantly higher than the average estimate of $298.72 million [4] - Outdoor segment gross profit was $324.43 million, slightly below the average estimate of $332.14 million [4] Stock Performance - Garmin shares have returned +13.3% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Consolidated revenue for Q2 2025 reached $181 billion, a 20% year-over-year increase[5] - Operating income for Q2 2025 was $472 million, a 38% year-over-year increase[7] - GAAP EPS for Q2 2025 was $207, a 33% year-over-year increase[18] - Pro Forma EPS for Q2 2025 was $217, a 37% year-over-year increase[18] Segment Performance - Fitness segment revenue for Q2 2025 was $605 million, a 41% year-over-year increase, with an operating income of $198 million[8] - Outdoor segment revenue for Q2 2025 was $490 million, an 11% year-over-year increase, with an operating income of $158 million[11] - Aviation segment revenue for Q2 2025 was $249 million, a 14% year-over-year increase, with an operating income of $63 million[12] - Marine segment revenue for Q2 2025 was $299 million, a 10% year-over-year increase, with an operating income of $63 million[14] - Auto OEM segment revenue for Q2 2025 was $170 million, a 16% year-over-year increase, with an operating income of -$10 million[16] Financial Position - Cash and marketable securities totaled $387 billion[23] Guidance - The company raised its 2025 revenue guidance to $71 billion[7,24]

Financial Performance - Garmin reported quarterly earnings of $2.17 per share, exceeding the Zacks Consensus Estimate of $1.96 per share, and up from $1.58 per share a year ago, representing an earnings surprise of +10.71% [1] - The company posted revenues of $1.81 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.41%, compared to $1.51 billion in the same quarter last year [2] - Over the last four quarters, Garmin has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Garmin shares have increased approximately 16% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.93 on revenues of $1.67 billion, and for the current fiscal year, it is $7.97 on revenues of $6.85 billion [7] - The outlook for the industry, specifically the Electronics - Miscellaneous Products sector, is favorable, ranking in the top 33% of over 250 Zacks industries, which historically outperforms the bottom 50% by more than 2 to 1 [8]

Financial Performance - Record consolidated revenue of $1.81 billion, a 20% increase compared to the prior year quarter[4] - Gross margin expanded to 58.8% from 57.3% in the prior year quarter[4] - Operating income reached $472 million, a 38% increase compared to the prior year quarter[4] - GAAP EPS of $2.07 and pro forma EPS of $2.17, representing 37% growth in pro forma EPS over the prior year quarter[4] - Net income for the 26 weeks ended June 28, 2025, was $733,591, a 27% increase from $576,591 in the previous year[26] - GAAP net income for the 13 weeks ended June 28, 2025, was $400,822,000, compared to $300,630,000 for the same period in 2024, representing a 33.3% increase[35] - Pro forma net income for the 26 weeks ended June 28, 2025, was $732,538,000, up from $578,710,000 in 2024, indicating a 26.6% growth[35] - The diluted GAAP net income per share for the 26 weeks ended June 28, 2025, was $3.79, compared to $2.99 for the same period in 2024, marking a 26.8% increase[35] - The pro forma net income per share (diluted) for the 13 weeks ended June 28, 2025, was $2.17, compared to $1.58 in 2024, an increase of 37.3%[35] Revenue by Segment - Fitness segment revenue increased 41% in the second quarter, driven by strong demand for advanced wearables[6] - Outdoor segment revenue increased 11% in the second quarter, primarily due to growth in adventure watches[7] - Aviation segment revenue increased 14% in the second quarter, with contributions from both OEM and aftermarket product categories[8] - Marine segment revenue increased 10% in the second quarter, led by growth in chartplotters[9] - Auto OEM segment revenue increased 16% during the second quarter, primarily driven by growth in domain controllers[10] Guidance and Future Outlook - Full year 2025 guidance raised to approximately $7.1 billion in revenue and pro forma EPS of $8.00[14] Cash Flow and Financial Position - Free cash flow for the 13 weeks ended June 28, 2025, was $127,494,000, a decrease from $218,164,000 in 2024, reflecting a 41.6% decline[38] - The company's free cash flow for the 26 weeks ended June 28, 2025, was $508,221,000, down from $620,301,000 in 2024, a decrease of 17.9%[38] - The company's net cash provided by operating activities for the 13 weeks ended June 28, 2025, was $173,171,000, down from $255,321,000 in 2024, a decline of 32.2%[38] - Cash and cash equivalents at the end of the period were $2,072,906, slightly down from $2,080,154 at the beginning of the period, reflecting cash management strategies[26] Research and Development - Research and development expenses increased to $544,783 for the 26 weeks ended June 28, 2025, compared to $485,686 in the same period last year, highlighting a focus on innovation[28] Asset Growth - Total assets increased to $10,324,076 as of June 28, 2025, from $9,630,527 at the end of December 2024, indicating growth in the company's financial position[24] Regional Performance - The Americas region generated net sales of $878,014 for the 13 weeks ended June 28, 2025, a 19% increase year-over-year[30] - The EMEA region saw a 25% increase in net sales to $677,402 for the 13 weeks ended June 28, 2025, compared to $542,016 in the prior year[30] Currency Impact - The estimated impact of foreign currency gains and losses on diluted net income per share was $0.01 for the 26-week period ended June 28, 2025[41] - Management is unable to determine the potential future net effect of foreign currency exchange gains and losses for fiscal 2025 due to high variability[41] Management Insights - Management believes free cash flow is an important liquidity measure, defined as operating cash flows less capital expenditures[37]

Core Insights - Garmin Ltd. reported record second quarter operating results, achieving a 20% increase in net sales year-over-year, totaling $1.81 billion [2][9] - The company raised its full year guidance, now anticipating approximately $7.1 billion in revenue and pro forma EPS of $8.00 [15] Financial Performance - Net sales for the second quarter reached $1,814,564, compared to $1,506,671 in the prior year, reflecting a 20% increase [2] - Gross profit was $1,067,012, a 24% increase from $862,891 in the previous year, with a gross margin of 58.8% [2][9] - Operating income rose to $472,295, marking a 38% increase from $342,027 in the prior year, with an operating margin of 26.0% [2][9] - GAAP diluted EPS was $2.07, a 33% increase from $1.56, while pro forma diluted EPS was $2.17, a 37% increase from $1.58 [2][9] Segment Performance - Fitness segment revenue increased by 41% to $605,425, driven by strong demand for advanced wearables [4] - Outdoor segment revenue grew by 11% to $490,357, primarily due to growth in adventure watches [5] - Aviation segment revenue rose by 14% to $249,366, with contributions from both OEM and aftermarket products [6] - Marine segment revenue increased by 10% to $299,262, led by growth in chartplotters [7] - Auto OEM segment revenue increased by 16% to $170,154, primarily driven by growth in domain controllers [10] Cash Flow and Capital Management - Operating cash flows for the quarter were $173 million, with free cash flow of $127 million [13] - The company paid a quarterly dividend of approximately $173 million and repurchased $67 million of its shares [13] Guidance and Future Outlook - The company anticipates a gross margin of 58.5% and an operating margin of 24.8% for the full year 2025 [15] - The effective tax rate for the second quarter was 16.5%, down from 17.9% in the prior year [12]

Core Insights - Garmin Ltd. has acquired MYLAPS, a Dutch company specializing in integrated timing, live tracking, and performance analysis tools for sports [1][2] - The acquisition aims to enhance the competitive experience for athletes and spectators by combining Garmin's technology with MYLAPS' expertise [2] Company Overview - MYLAPS has been a leader in sports technology since 1982, known for inventing automatic sports timing and transforming performance measurement [2] - MYLAPS operates globally with over 200 full-time employees and has a presence in North America, Europe, Asia, and Australia [1][2] Strategic Implications - The acquisition is expected to set a new standard for performance-focused training and race-day technology, benefiting Garmin's extensive customer base [2] - Garmin's commitment to innovation in various markets, including fitness and outdoor activities, aligns with MYLAPS' capabilities in enhancing sports experiences [3]

Core Insights - Garmin (GRMN) is set to report its second-quarter 2025 results on July 30, with earnings estimated at $1.96 per share, reflecting a 24% year-over-year increase [1][2] - The revenue estimate for the same quarter is $1.74 billion, indicating a year-over-year growth of 15.35% [2][11] Revenue Segments - The Fitness segment is expected to generate revenues of $482.5 million, showing a 12.6% increase year-over-year, driven by strong demand for advanced wearables and new wellness products [5][4] - The Outdoor segment's revenue is projected at $469.1 million, representing a 6.6% year-over-year growth, supported by strong momentum in wearables and new product launches [7][6] - The Marine segment is anticipated to achieve revenues of $340.4 million, up 24.7% from the previous year, bolstered by new product launches and the acquisition of Lumishore [9][8] - The Aviation segment is expected to report revenues of $245.8 million, indicating a 12.6% year-over-year growth, aided by increased demand in private air travel and new product launches [12][10] - The Auto OEM segment is projected to reach $185.5 million in revenues, reflecting a significant 26% year-over-year growth, driven by increased shipments to BMW [12] Growth Drivers - Garmin's expanding product portfolio is a key growth driver for its top-line performance in Q2 2025 [3] - Collaborations with Zwift and Google Maps are likely to enhance product appeal and boost sales across various segments [11]

Core Viewpoint - Garmin (GRMN) is expected to report quarterly earnings of $1.96 per share, a 24.1% increase year-over-year, with revenues projected at $1.74 billion, reflecting a 15.3% year-over-year growth [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised upward by 0.7%, indicating a reassessment by analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock [3]. Key Metrics Projections - Analysts predict 'Net Sales- Marine' to reach $296.34 million, an increase of 8.6% from the prior year [4]. - 'Net Sales- Aviation' is estimated at $242.18 million, reflecting an 11% year-over-year change [5]. - 'Net Sales- Fitness' is expected to be $513.54 million, indicating a 19.9% increase year-over-year [5]. - 'Net Sales- Outdoor' is projected at $519.45 million, suggesting an 18.1% year-over-year growth [5]. - 'Net Sales- Auto OEM' is estimated at $166.39 million, a 13.1% increase from the previous year [6]. Operating Income Estimates - 'Operating income (loss)- Outdoor' is expected to be $185.99 million, up from $135.59 million year-over-year [6]. - 'Operating income (loss)- Fitness' is projected at $140.32 million, compared to $107.61 million in the same quarter last year [7]. - 'Operating income (loss)- Marine' is estimated at $58.30 million, slightly down from $59.89 million in the previous year [7]. Gross Profit Estimates - 'Gross profit- Fitness' is forecasted to be $298.72 million, up from $245.25 million year-over-year [8]. - 'Gross profit- Marine' is expected to reach $162.48 million, compared to $147.79 million in the same quarter last year [8]. - 'Gross profit- Aviation' is projected at $181.00 million, an increase from $161.37 million year-over-year [9]. - 'Gross profit- Outdoor' is estimated at $332.14 million, up from $284.21 million in the previous year [9]. Stock Performance - Over the past month, Garmin shares have returned +13%, outperforming the Zacks S&P 500 composite's +4.6% change [9].