Core Insights - Garmin reported record fourth-quarter and full-year 2025 results, driven by strong demand across its diversified portfolio and improved operating leverage [4][3] - The company expects continued growth in 2026, with revenue guidance of approximately $7.9 billion, up about 9% year-over-year [19] Financial Performance - Fourth-quarter revenue exceeded $2.1 billion, marking a 17% increase year-over-year, while full-year revenue reached $7.246 billion, up 15% [7][8] - Operating income for the fourth quarter was a record $614 million, up 19% year-over-year, with pro forma EPS of $2.79, up 16% [3][2] - Gross margin for the fourth quarter was 59.2%, with operating margin expanding 60 basis points to 28.9% [3] Segment Performance - Fitness segment revenue grew 42% in Q4 and 33% for the full year, driven by wearables, with operating income rising 50% to $726 million [2][10] - Marine revenue increased 10% to $1.18 billion, while aviation revenue rose 13% to $987 million, both segments showing strong margin performance [15][14] - Auto OEM segment remains loss-making with an operating loss of $49 million, but future growth is anticipated with new domain controller programs [16] Capital Returns - The board proposed a 17% increase in the annual dividend to $4.20 per share and authorized a $500 million share repurchase program [5][17] - Garmin ended the quarter with approximately $4.1 billion in cash and expects free cash flow of about $1.4 billion for 2026 [23] 2026 Outlook - Garmin anticipates operating income to exceed $2 billion for the first time in 2026, despite facing memory cost pressures and tariff-related challenges [19][20] - The company projects a gross margin of about 58.5% and an operating margin of approximately 25.5% for 2026 [19]