GRMN

Cyclical

Garmin

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2007–2025(19yr)

Revenue

Net Income

Free CF

Metric	FY 2007	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$3.2B	$3.5B	$2.9B	$2.7B	$2.8B	$2.7B	$2.6B	$2.9B	$2.8B	$3.0B	$3.1B	$3.3B	$3.8B	$4.2B	$5.0B	$4.9B	$5.2B	$6.3B	$7.2B	+15.1%
Gross Profit	$1.5B	$1.6B	$1.4B	$1.3B	$1.3B	$1.4B	$1.4B	$1.6B	$1.5B	$1.7B	$1.8B	$2.0B	$2.2B	$2.5B	$2.9B	$2.8B	$3.0B	$3.7B	$4.3B	+15.1%
Gross Margin	46.0%	44.5%	49.0%	50.1%	48.5%	53.0%	53.5%	55.9%	54.6%	55.1%	57.1%	59.1%	59.5%	59.3%	58.0%	57.7%	57.5%	58.7%	58.7%	+0.0pp
Operating Income	$907.4M	$862.0M	$786.0M	$636.7M	$553.8M	$604.2M	$574.0M	$690.6M	$549.6M	$623.9M	$668.9M	$778.3M	$945.6M	$1.1B	$1.2B	$1.0B	$1.1B	$1.6B	$1.9B	+17.7%
Operating Margin	28.5%	24.7%	26.7%	23.7%	20.1%	22.2%	21.8%	24.1%	19.5%	20.5%	21.4%	23.3%	25.2%	25.2%	24.5%	21.1%	20.9%	25.3%	25.9%	+0.6pp
Net Income	$855.0M	$732.8M	$704.0M	$584.6M	$520.9M	$542.4M	$612.4M	$364.2M	$456.2M	$510.8M	$695.0M	$694.1M	$952.5M	$992.3M	$1.1B	$973.6M	$1.3B	$1.4B	$1.7B	+17.9%
Net Margin	26.9%	21.0%	23.9%	21.7%	18.9%	20.0%	23.3%	12.7%	16.2%	16.8%	22.3%	20.7%	25.3%	23.7%	21.7%	20.0%	24.7%	22.4%	23.0%	+0.5pp
Free Cash Flow	$525.3M	$742.5M	$1.0B	$738.4M	$784.0M	$646.3M	—	—	$199.9M	$614.7M	$521.1M	$763.8M	$580.5M	$949.9M	$704.8M	$544.0M	$1.2B	$1.2B	$1.4B	+10.0%
FCF Margin	16.5%	21.3%	35.5%	27.5%	28.4%	23.8%	—	—	7.1%	20.2%	16.7%	22.8%	15.4%	22.7%	14.1%	11.2%	22.6%	19.7%	18.8%	-0.9pp
EPS (Diluted)	$3.89	$3.48	$3.50	$2.95	$2.67	$2.76	$3.12	$1.88	$2.39	$2.70	$3.68	$3.66	$4.99	$5.17	$5.61	$5.04	$6.71	$7.30	$8.59	+17.7%

Cash & Equiv.$2.3B

3 min read

1. THE BIG PICTURE

Garmin’s primary strength is its ability to dominate high-margin navigation niches while maintaining a level of profitability—leading its peer group with a 25.3% operating margin—that belies its status as a hardware manufacturer (XBRL). By owning its production facilities and diversifying across five distinct segments, from aviation to fitness, Garmin has effectively insulated its consolidated earnings from the volatility of any single consumer category.

2. WHERE THE RISKS HIT HARDEST

Vertical integration, which Garmin cites as a "core competency" for cost control and rapid prototyping, is simultaneously its greatest structural vulnerability (10-K Item 1). The "principal manufacturing facilities" for consumer products are located in Taiwan; consequently, any military action or occupation by the People’s Republic of China would likely halt the production that sustains Garmin's 58.9% gross margins (10-K Item 1A, XBRL). Furthermore, the strategic push into the Auto OEM segment currently acts as a drag on the bottom line. Heavy investments in research and specialized facilities have not yet been offset by sufficient revenue, causing the segment to "negatively impact total company profits" (10-K Item 1A).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a company that is significantly more efficient than its peers, ranking first in both operating margin (25.3%) and net margin (22.9%) despite competing with giants like Nike and specialized industrial firms like Keysight (XBRL). While 2025 was a "year of remarkable growth" with 17% revenue expansion in the final quarter, management’s 2026 guidance of approximately 9% growth suggests a return to a more normalized trajectory (8-K). This deceleration is partly explained by the "flat" performance in the Outdoor segment, which is currently comparing against strong prior-year product launch cycles (8-K). With a net cash position of $2.5 billion and no net debt, Garmin possesses the balance sheet to sustain continued losses in Auto OEM while funding the R&DR&DResearch & Development — spending on creating new products or technologies necessary to prevent product obsolescence (XBRL).

4. IS IT WORTH IT AT THIS PRICE?

At 23.8x forward earnings, Garmin trades in line with the peer median of 24.5x (Yahoo Finance). According to CAPM analysis, the market is currently pricing in approximately 5.5% long-term growth. This appears conservative given Garmin’s trailing 15.1% revenue growth and its leading margin profile. However, the valuation is capped by the "Elevated" geopolitical risk; if growth were to slow to 5.0%, the justified multiple would drop to 21.2x. Investors are essentially acquiring a best-in-class operator at a market-average price, but they are paying for that entry point by assuming the risk of a manufacturing shutdown in the Taiwan Strait.

5. WHAT WOULD CHANGE THIS VIEW?

Constructive if the Auto OEM segment achieves profitability, proving that the heavy R&DR&DResearch & Development — spending on creating new products or technologies investments can finally scale beyond legacy program end-of-life cycles.
Cautious if gross margins begin to compress toward the 58.5% guidance for 2026, signaling that vertical integration is losing its cost-control edge against competitors like Apple or Honeywell.
Cautious if short interest, currently at 2.5% of the float, begins to climb alongside a rise in days-to-cover, indicating growing market skepticism of the 2026 growth targets (Yahoo Finance).

6. BOTTOM LINE

Structural Advantage: Vertical integration combined with a diversified portfolio of purpose-built hardware for aviation, marine, and fitness markets. Bottom Line: Garmin is a highly profitable, cash-rich compounder whose valuation remains tethered to geopolitical stability in Taiwan.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

New Product Development: Garmin depends on the timely introduction of new products to maintain competitiveness. Failure to innovate or adapt to evolving industry standards could lead to product obsolescence, decreased demand, and lower sales and profits.
Geopolitical Risk in Taiwan: Garmin’s principal manufacturing facilities for consumer products are located in Taiwan. Potential military action or occupation by the People’s Republic of China could cause severe disruptions to manufacturing and supply chain operations.
Auto OEM Segment Performance: Garmin has invested heavily in facilities and research for the auto OEM segment. Because these investments have not yet been offset by sufficient revenue and gross profit, the segment continues to negatively impact total company profits.
Supply Chain and Component Dependencies: Garmin relies on third-party suppliers for critical components like semiconductors, batteries, and microprocessors. Shortages, cost increases, or the inability to secure alternative sources for sole-source components threaten production and margins.
Information Technology and Cybersecurity: Garmin is exposed to system failures, ransomware, and cyberattacks. Such incidents could compromise proprietary information, disrupt global distribution and manufacturing, and result in significant financial and reputational damage.

2. Company-Specific Risks

Satellite System Reliance: Many Garmin products depend on the U.S. Department of Defense’s GPS constellation. Any disruption to these signals, or a change in U.S. policy that imposes user fees or restricts commercial access, would directly impair product functionality.
Key Personnel Retention: Garmin does not have employment agreements with its key executive officers and lacks key person life insurance. The loss of senior management or skilled engineering personnel could harm growth prospects.
Shareholder Influence: As of December 27, 2025, directors and executive officers beneficially owned approximately 15% of outstanding shares, which may allow them to significantly influence corporate actions and potentially delay or prevent a change in control.
Swiss Withholding Tax: Distributions in excess of unappropriated capital contribution reserves are generally subject to a 35% Swiss federal withholding tax. As of December 27, 2025, Garmin had $2,807 million in such reserves available for distribution.

3. Regulatory/Legal Risks

Data Privacy Compliance: Garmin is subject to global data privacy laws, such as the EU’s General Data Protection Regulation (GDPR). Non-compliance can result in penalties as high as 4% of total global revenue.
Aviation Certification: Products intended for type-certificated aircraft require FAA certification. Delays in this process, or government shutdowns affecting the FAA, can lead to compensation payments to customers and delayed product launches.
Global Minimum Tax: Under the OECD’s "Pillar Two" framework, many countries where Garmin operates are implementing a 15% global minimum tax, which could adversely impact Garmin’s future income tax provision, net income, or cash flows.
Intellectual Property Litigation: Garmin is frequently a defendant in patent infringement lawsuits. These proceedings are costly and time-consuming, and adverse outcomes could force Garmin to suspend the use of critical technologies or cease the sale of certain products.

4. Financial Impact Map

New Product Development → Revenue and Profits → Failure to innovate leads to decreased demand and obsolescence. Geopolitical Risk in Taiwan → Manufacturing Operations → Potential material negative impact on operations and supply chain. Auto OEM Segment Performance → Consolidated Operating Income → Current costs exceed associated revenue and gross profit. Supply Chain and Component Dependencies → Cost of Goods Sold → Shortages and supply disruptions lead to increased procurement costs and lower margins. Information Technology and Cybersecurity → Operating Expenses → Increased costs to deploy protection technologies, engage security experts, and conduct employee training.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
8-K	Feb 2026	—
10-K	Feb 2026	Dec 2025
10-Q	Oct 2025	Sep 2025
14A	Apr 2025	—