Garmin sustains strong pricing power with a 59.4% gross margin as of 2026Q1, reflecting the high barriers to entry in its core specialized instrumentation markets.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Sales/Revenue | 7.46B | 7.25B | 6.3B | 5.23B | 4.86B | 4.98B | 4.19B | 3.76B | 3.35B | 3.09B | 3.02B | 2.82B | 2.87B | 2.63B | 2.72B | 2.76B | 2.69B | 2.95B | 3.49B | 3.18B | 1.77B | 1.03B | 762.55M | 572.99M | 465.14M | 369.12M | 345.74M | 232.59M |
| Revenue Growth % | 15.71% | 15.06% | 20.44% | 7.57% | -2.46% | 19.02% | 11.42% | 12.25% | 8.44% | 2.26% | 7.03% | -1.76% | 9.07% | -3.09% | -1.55% | 2.55% | -8.71% | -15.67% | 9.87% | 79.27% | 72.61% | 34.78% | 33.08% | 23.19% | 26.01% | 6.76% | 48.65% | - |
| Cost of Goods Sold | 3.05B | 2.99B | 2.6B | 2.22B | 2.05B | 2.09B | 1.71B | 1.52B | 1.37B | 1.3B | 1.34B | 1.28B | 1.27B | 1.22B | 1.28B | 1.42B | 1.34B | 1.5B | 1.94B | 1.72B | 891.61M | 492.7M | 351.31M | 242.45M | 210.09M | 170.96M | 154.45M | 100.08M |
| COGS % of Revenue | - | 41.26% | 41.3% | 42.52% | 42.25% | 41.99% | 40.73% | 40.55% | 40.86% | 42.24% | 44.36% | 45.44% | 44.11% | 46.53% | 47.03% | 51.48% | 49.95% | 50.99% | 55.54% | 53.99% | 50.26% | 47.94% | 46.07% | 42.31% | 45.17% | 46.32% | 44.67% | 43.03% |
| Gross Profit | 4.41B | 4.26B | 3.7B | 3B | 2.81B | 2.89B | 2.48B | 2.23B | 1.98B | 1.78B | 1.68B | 1.54B | 1.6B | 1.41B | 1.44B | 1.34B | 1.35B | 1.44B | 1.55B | 1.46B | 882.39M | 535.07M | 411.24M | 330.54M | 255.06M | 198.16M | 191.29M | 132.5M |
| Gross Margin % | 59.14% | 58.74% | 58.7% | 57.48% | 57.75% | 58.01% | 59.27% | 59.45% | 59.14% | 57.76% | 55.64% | 54.56% | 55.89% | 53.47% | 52.97% | 48.52% | 50.05% | 49.01% | 44.46% | 46.01% | 49.74% | 52.06% | 53.93% | 57.69% | 54.83% | 53.68% | 55.33% | 56.97% |
| Gross Profit Growth % | - | 15.14% | 23.02% | 7.06% | -2.9% | 16.49% | 11.07% | 12.84% | 11.02% | 6.17% | 9.15% | -4.1% | 14.01% | -2.17% | 7.46% | -0.58% | -6.77% | -7.04% | 6.17% | 65.83% | 64.91% | 30.11% | 24.41% | 29.6% | 28.71% | 3.59% | 44.37% | - |
| Operating Expenses | 2.44B | 2.38B | 2.1B | 1.91B | 1.78B | 1.67B | 1.43B | 1.29B | 1.2B | 1.11B | 1.06B | 989.12M | 913.79M | 833.27M | 834.32M | 784.83M | 709.7M | 658.1M | 691.5M | 555.9M | 327.83M | 196.9M | 140.57M | 103.54M | 77.62M | 66.87M | 62M | 49.97M |
| OpEx % of Revenue | - | 32.85% | 33.39% | 36.59% | 36.6% | 33.55% | 34.09% | 34.29% | 35.89% | 36.1% | 34.97% | 35.07% | 31.83% | 31.66% | 30.72% | 28.45% | 26.38% | 22.34% | 19.79% | 17.48% | 18.48% | 19.16% | 18.43% | 18.07% | 16.69% | 18.12% | 17.93% | 21.49% |
| Selling, General & Admin | 1.29B | 1.25B | 1.11B | 1.01B | 944M | 831.82M | 721.41M | 683.02M | 633.57M | 602.67M | 587.7M | 562.08M | 518.66M | 468.35M | 508.55M | 486.24M | 432.44M | 419.72M | 485.39M | 396.5M | 214.51M | 122.02M | 61.58M | 59.84M | 45.45M | 38.71M | 32.67M | 27.06M |
| SG&A % of Revenue | - | 17.31% | 17.61% | 19.28% | 19.42% | 16.69% | 17.23% | 18.18% | 18.93% | 19.52% | 19.47% | 19.93% | 18.07% | 17.8% | 18.73% | 17.63% | 16.08% | 14.25% | 13.89% | 12.47% | 12.09% | 11.87% | 8.08% | 10.44% | 9.77% | 10.49% | 9.45% | 11.64% |
| Research & Development | 1.15B | 1.13B | 993.6M | 904.7M | 834.93M | 840.02M | 705.68M | 605.37M | 567.8M | 511.63M | 467.96M | 427.04M | 395.12M | 364.92M | 325.77M | 298.58M | 277.26M | 238.38M | 206.11M | 159.41M | 113.31M | 74.88M | 78.99M | 43.71M | 32.16M | 28.16M | 21.76M | 17.34M |
| R&D % of Revenue | - | 15.54% | 15.78% | 17.3% | 17.18% | 16.86% | 16.86% | 16.11% | 16.96% | 16.57% | 15.5% | 15.14% | 13.76% | 13.87% | 12% | 10.82% | 10.31% | 8.09% | 5.9% | 5.01% | 6.39% | 7.29% | 10.36% | 7.63% | 6.91% | 7.63% | 6.29% | 7.45% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 7.58M | 4.87M | 0 | 5.62M | 5.37M | -912K | 4.01M | 0 | 1.83M | 0 | 5.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.57M | 5.57M |
| Operating Income | 1.97B | 1.88B | 1.59B | 1.09B | 1.03B | 1.22B | 1.05B | 945.59M | 778.34M | 668.86M | 623.91M | 549.58M | 690.63M | 574.03M | 604.16M | 553.77M | 636.68M | 786.01M | 862.02M | 907.35M | 554.56M | 338.17M | 270.67M | 227M | 177.44M | 131.29M | 129.29M | 82.53M |
| Operating Margin % | 26.46% | 25.89% | 25.31% | 20.89% | 21.15% | 24.46% | 25.18% | 25.17% | 23.25% | 21.67% | 20.67% | 19.49% | 24.06% | 21.81% | 22.25% | 20.07% | 23.67% | 26.68% | 24.67% | 28.53% | 31.26% | 32.9% | 35.5% | 39.62% | 38.15% | 35.57% | 37.4% | 35.48% |
| Operating Income Growth % | - | 17.7% | 45.95% | 6.26% | -15.65% | 15.59% | 11.49% | 21.49% | 16.37% | 7.2% | 13.52% | -20.42% | 20.31% | -4.99% | 9.1% | -13.02% | -19% | -8.82% | -5% | 63.62% | 63.99% | 24.94% | 19.24% | 27.93% | 35.16% | 1.54% | 56.66% | - |
| EBITDA | 2.17B | 2.06B | 1.77B | 1.27B | 1.19B | 1.37B | 1.18B | 1.05B | 874.54M | 755.11M | 710.25M | 627.94M | 767.64M | 652.84M | 694.63M | 648.3M | 731.33M | 882.5M | 940.43M | 971.39M | 599.03M | 381.77M | 305.27M | 247.1M | 193.57M | 142.15M | 136.86M | 88.1M |
| EBITDA Margin % | 29.03% | 28.5% | 28.17% | 24.29% | 24.52% | 27.56% | 28.21% | 27.99% | 26.13% | 24.46% | 23.53% | 22.27% | 26.74% | 24.81% | 25.58% | 23.5% | 27.19% | 29.95% | 26.92% | 30.54% | 33.77% | 37.15% | 40.03% | 43.13% | 41.62% | 38.51% | 39.59% | 37.88% |
| EBITDA Growth % | 19.72% | 16.41% | 39.69% | 6.55% | -13.23% | 16.3% | 12.28% | 20.26% | 15.82% | 6.32% | 13.11% | -18.2% | 17.59% | -6.02% | 7.15% | -11.35% | -17.13% | -6.16% | -3.19% | 62.16% | 56.91% | 25.06% | 23.54% | 27.66% | 36.17% | 3.87% | 55.34% | - |
| D&A (Non-Cash Add-back) | 191.59M | 188.76M | 179.74M | 177.57M | 163.85M | 154.82M | 126.72M | 106.17M | 96.19M | 86.25M | 86.34M | 78.36M | 77.02M | 78.8M | 90.47M | 94.53M | 94.65M | 96.49M | 78.42M | 64.04M | 44.48M | 43.6M | 34.6M | 20.1M | 16.13M | 10.87M | 7.57M | 5.57M |
| EBIT | 2.07B | 1.88B | 1.59B | 1.09B | 1.03B | 1.22B | 1.05B | 945.59M | 778.34M | 683.64M | 632.86M | 549.58M | 690.63M | 574.03M | 604.16M | 553.77M | 578.52M | 808.65M | 914.97M | 978.48M | 554.56M | 338.17M | 270.67M | 227M | 177.44M | 131.29M | 129.29M | 82.53M |
| Net Interest Income | 134.34M | 128.87M | 113.52M | 77.3M | 40.83M | 28.57M | 37M | 52.82M | 47.15M | 36.92M | 33.41M | 29.65M | 35.58M | 35.27M | 35.11M | 32.81M | 23.73M | 23.52M | 34.93M | 41.79M | 0 | 0 | -30.88M | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 134.34M | 128.87M | 113.52M | 77.3M | 40.83M | 28.57M | 37M | 52.82M | 47.15M | 36.92M | 33.41M | 29.65M | 35.58M | 35.27M | 35.11M | 32.81M | 24.98M | 23.52M | 35.53M | 41.99M | 0 | 0 | 9.42M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.25M | 0 | 607K | 207K | 0 | 0 | 40.3M | 9.05M | 0 | 0 | 0 | 546K |
| Other Income/Expense | 123.07M | 138.46M | 101.41M | 108.2M | 37.13M | -11.82M | 49.17M | 41.64M | 44.9M | 13.43M | 5.76M | 17.61M | 33.12M | 79.53M | 20.37M | 30.39M | -59.4M | 22.64M | 52.35M | 70.92M | 39.99M | 34.43M | -15.46M | -1.06M | 5.29M | 20.75M | 11.63M | 1.6M |
| Pretax Income | 2.1B | 2.01B | 1.7B | 1.2B | 1.06B | 1.21B | 1.1B | 987.22M | 823.25M | 682.29M | 629.67M | 567.19M | 723.75M | 653.56M | 624.53M | 584.16M | 577.27M | 808.65M | 914.37M | 978.27M | 594.55M | 372.6M | 255.21M | 225.94M | 182.74M | 152.03M | 140.92M | 84.13M |
| Pretax Margin % | 28.11% | 27.8% | 26.92% | 22.96% | 21.91% | 24.22% | 26.36% | 26.27% | 24.59% | 22.1% | 20.86% | 20.11% | 25.21% | 24.83% | 23% | 21.18% | 21.46% | 27.45% | 26.17% | 30.76% | 33.51% | 36.25% | 33.47% | 39.43% | 39.29% | 41.19% | 40.76% | 36.17% |
| Income Tax | 361.79M | 350.65M | 283.96M | -89.28M | 91.39M | 124.6M | 111.09M | 34.74M | 129.17M | -12.66M | 118.86M | 110.96M | 359.53M | 41.15M | 82.13M | 63.27M | -7.33M | 104.7M | 181.52M | 123.26M | 80.43M | 61.38M | 49.51M | 47.31M | 39.94M | 38.59M | 35.26M | 19.96M |
| Effective Tax Rate % | 17.24% | 17.41% | 16.75% | -7.44% | 8.58% | 10.32% | 10.07% | 3.52% | 15.69% | -1.86% | 18.88% | 19.56% | 49.68% | 6.3% | 13.15% | 10.83% | -1.27% | 12.95% | 19.85% | 12.6% | 13.53% | 16.47% | 19.4% | 20.94% | 21.86% | 25.38% | 25.02% | 23.73% |
| Net Income | 1.74B | 1.66B | 1.41B | 1.29B | 973.59M | 1.08B | 992.32M | 952.49M | 694.08M | 694.96M | 510.81M | 456.23M | 364.21M | 612.41M | 542.4M | 520.9M | 584.6M | 703.95M | 732.85M | 855.01M | 514.12M | 311.22M | 205.7M | 178.63M | 142.8M | 113.45M | 105.66M | 64.17M |
| Net Margin % | 23.26% | 22.96% | 22.41% | 24.67% | 20.03% | 21.72% | 23.7% | 25.35% | 20.73% | 22.51% | 16.92% | 16.18% | 12.69% | 23.27% | 19.97% | 18.88% | 21.73% | 23.89% | 20.97% | 26.88% | 28.98% | 30.28% | 26.98% | 31.18% | 30.7% | 30.73% | 30.56% | 27.59% |
| Net Income Growth % | 18.25% | 17.89% | 9.44% | 32.46% | -10.04% | 9.06% | 4.18% | 37.23% | -0.13% | 36.05% | 11.96% | 25.26% | -40.53% | 12.91% | 4.13% | -10.9% | -16.95% | -3.94% | -14.29% | 66.3% | 65.2% | 51.3% | 15.15% | 25.1% | 25.87% | 7.37% | 64.67% | - |
| Net Income (Continuing) | 1.74B | 1.66B | 1.41B | 1.29B | 973.59M | 1.08B | 992.32M | 952.49M | 694.08M | 709.01M | 517.72M | 456.23M | 364.21M | 612.41M | 542.4M | 520.9M | 584.6M | 703.95M | 732.85M | 855.01M | 514.12M | 311.22M | 205.7M | 178.63M | 142.8M | 113.45M | 105.66M | 64.17M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.97 | 8.59 | 7.30 | 6.71 | 5.04 | 5.61 | 5.17 | 4.99 | 3.66 | 3.68 | 2.70 | 2.39 | 1.88 | 3.12 | 2.76 | 2.67 | 2.95 | 3.50 | 3.48 | 3.89 | 2.35 | 1.43 | 0.95 | 0.82 | 0.66 | 0.53 | 0.53 | 0.32 |
| EPS Growth % | 18.03% | 17.67% | 8.79% | 33.13% | -10.16% | 8.51% | 3.61% | 36.34% | -0.54% | 36.3% | 12.97% | 27.13% | -39.74% | 13.04% | 3.37% | -9.49% | -15.71% | 0.57% | -10.54% | 65.53% | 64.34% | 50.53% | 15.85% | 24.24% | 24.53% | 0% | 65.63% | - |
| EPS (Basic) | - | 8.65 | 7.35 | 6.74 | 5.06 | 5.63 | 5.19 | 5.01 | 3.68 | 3.70 | 2.71 | 2.39 | 1.89 | 3.13 | 2.78 | 2.68 | 2.97 | 3.51 | 3.51 | 3.95 | 2.38 | 1.44 | 0.95 | 0.83 | 0.66 | 0.53 | 0.53 | 0.32 |
| Diluted Shares Outstanding | 193.56M | 193.62M | 193.47M | 192.06M | 193.04M | 193.04M | 191.9M | 190.9M | 189.73M | 188.73M | 189.34M | 191.11M | 194.16M | 196.34M | 196.21M | 194.89M | 198.01M | 201.16M | 210.68M | 219.88M | 218.78M | 218.4M | 217.67M | 217.85M | 216.36M | 217.24M | 201.26M | 200.52M |
| Basic Shares Outstanding | 192.67M | 192.47M | 192.14M | 191.4M | 192.54M | 192.18M | 191.09M | 189.93M | 188.63M | 187.83M | 188.82M | 190.63M | 193.11M | 195.41M | 194.91M | 194.1M | 196.98M | 200.4M | 208.99M | 216.52M | 216.02M | 216.12M | 216.53M | 216.53M | 216.36M | 216.09M | 201.26M | 200.52M |
| Dividend Payout Ratio | - | 39.9% | 40.55% | 43.33% | 69.75% | 45.41% | 45.41% | 43.81% | 42.67% | 55.11% | 94.25% | 82.88% | 98.86% | 57.43% | 46.72% | 59.66% | 51.12% | 21.29% | 20.5% | 19.01% | 20.99% | 17.34% | 26.3% | 30.25% | - | - | 27.4% | 11.73% |
Consumer discretionary spending sensitivity
As reported in recent financial filings, Garmin achieved a 14.2% year-over-year revenue increase in 2026Q1, demonstrating consistent top-line expansion that appears driven by successful product cycles across its specialized aviation and outdoor segments rather than reliance on a single consumer-facing category.
The company's ability to maintain double-digit growth rates suggests that its niche-focused strategy effectively insulates it from the broader volatility seen in general consumer electronics. Investors should monitor whether this momentum can persist as the company scales its automotive OEM partnerships, which may introduce different growth cadences compared to its legacy hardware business.
Based on the latest income statement data, Garmin maintains a robust gross margin of 59.4%, a figure that underscores the company's significant pricing power and the high barriers to entry inherent in its specialized aviation and marine instrumentation markets.
This margin profile appears structurally superior to peers like Sonos or GoPro, reflecting the premium value placed on Garmin's proprietary technology and vertical integration. The stability of these margins suggests that the company is successfully managing input cost pressures while maintaining its competitive moat against generalist hardware manufacturers.
According to historical income statement trends, Garmin has demonstrated disciplined operating leverage, with operating income scaling effectively alongside gross profit, reaching $431.7 million in 2026Q1 despite ongoing investments in research and development to maintain its technological edge.
The company's ability to manage SG&A expenses while simultaneously increasing R&D spend indicates a high level of operational maturity and expense discipline. This suggests that management is prioritizing long-term innovation without sacrificing current profitability, which is a critical differentiator in the hardware sector.
As evidenced by the provided financial data, Garmin's net income remains consistently strong, with net margins hovering above 20% in recent quarters, suggesting that reported earnings are largely driven by core operational performance rather than non-recurring items or aggressive accounting maneuvers.
The relatively low and predictable impact of stock-based compensation relative to net income suggests a shareholder-friendly approach to equity incentives. Investors should continue to evaluate the sustainability of these margins as the company navigates potential shifts in product mix toward lower-margin automotive contracts.
While current performance is strong, an analytical challenge to the narrative is the potential for margin compression as Garmin pivots toward automotive OEM contracts, which historically carry lower margins than the high-end adventure and aviation segments that currently anchor the company's profitability.
If the automotive segment becomes a larger portion of the revenue mix, the consolidated gross margin may face downward pressure, potentially challenging the current valuation premium. Investors should monitor whether the long-term stability of these OEM contracts can adequately offset the loss of higher-margin consumer hardware sales.
Quick answers to the most common questions about buying GRMN stock.
For fiscal year 2025, Garmin Ltd. (GRMN) reported total revenue of $7.25B. This represents a 3015.2% increase compared to $232.6M in 1999.
Garmin Ltd. (GRMN) is profitable, generating $1.66B in net income for the fiscal year ending 2025 with a net profit margin of 23.0%.
Garmin Ltd. (GRMN) reported an operating income of $1.88B, resulting in an operating profit margin of 25.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Garmin Ltd. (GRMN) generated $4.26B in gross profit for the year, representing a gross profit margin of 58.7%. This demonstrates the company's core pricing power and production efficiency.