Overview
- Garmin reported record second-quarter consolidated revenue of $2.02 billion and operating income of $616 million, an 11% and 30% year-over-year increase respectively.
- The fitness segment led the quarter with a 25% revenue gain and $277 million in operating income driven by new wearables such as the Forerunner 70/170 and the CIRQA Smart Band plus the acquisitions of TrainingPeaks and TrainHeroic.
- Marine and aviation posted broad gains, with marine revenue up 14% aided by products like LiveScope 2 and new VHF touchscreen radios, and aviation revenue up 8% supported by the D2 Mach 2 Pro watch and AXIS flight displays.
- Outdoor revenue dipped about 2% because of weaker consumer auto and adventure-watch sales, while the auto OEM unit returned to modest profitability with $3 million in operating income.
- Garmin raised its full-year revenue and EPS guidance after margin expansion to a 62.4% gross margin and 30.4% operating margin, a shift that could deepen recurring-service revenue and sharpen competition with generalist smartwatch makers.