Garmin Ltd

Garmin delivered a mixed but broadly encouraging third quarter, matching Wall Street's earnings expectations precisely while falling just short on the top line. The GPS and wearables giant posted pro forma EPS of $1.99, in line with the $1.99 consensus estimate, as revenue climbed 11.7% year-over-year to $1.77 billion, coming in $30 million below the $1.80 billion analysts had anticipated. The standout driver was Garmin's fitness segment, which surged 30% to $601.01 million on robust demand for advanced wearables, while marine grew 20% and aviation rose 18%, more than offsetting a 5% decline in outdoor and a 2% dip in auto OEM. Operating income reached a record $456.80 million, though margins compressed to 25.8% from 27.6% a year ago as personnel costs rose. A higher effective tax rate of 21.2%, up from 17.9%, weighed on earnings growth. Looking ahead, Garmin raised its full-year 2025 guidance, projecting revenue of approximately $7.10 billion and pro forma EPS of $8.15, citing confidence heading into the holiday selling season.