Garmin Raises Dividend 17% and Unveils $500M Buyback After Record Sales
Garmin delivered 16% adjusted EPS growth in FY25 after a 32% rise in FY24 and posted record revenue across all five segments, driven by a 33% fitness surge and 15% total sales growth. The company boosted its dividend by 17%, unveiled a $500 million buyback and trades near all-time highs with a 26.8X forward P/E.
1. Q4 Beat and EPS Growth
Garmin’s Q4 beat-and-raise report propelled the stock near all-time highs, with FY25 adjusted EPS climbing 16% after a 32% increase in FY24. Record revenue across all segments underpinned the beat, reflecting strong demand for GPS and wearable products.
2. Segment Performance
Fitness led the charge with 33% revenue growth, followed by Outdoor at 28%, while Aviation, Marine and Auto OEM each set new records. The company shipped over 20 million units in 2025, driving overall sales up 15% year-over-year.
3. Capital Return Measures
Supported by $2.7 billion in cash, zero debt and $10.9 billion in assets, Garmin raised its quarterly dividend by 17% and launched a $500 million share repurchase program. These moves signal management’s confidence in sustained cash flow generation.
4. Outlook and Valuation
Analysts project EPS growth of 8% in both 2026 and 2027 to $9.96 per share and revenue reaching $8.52 billion by 2027. Garmin trades at a 26.8X forward P/E, a slight premium to the broader Tech sector despite stronger growth metrics.