Garmin Ltd. stock research
FY2025 Q1
Garmin (GRMN) Gross Margin — Quarter Ended Mar 29, 2025
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 29, 2025 · FY2025 Q1
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from both the prior quarter and the year-ago quarter.
- The gross margin declined from the prior quarter and the year-ago quarter, indicating that cost of revenue grew faster than revenue. The relationship between revenue and cost of revenue is the primary observable driver of margin change.
- Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue also decreased, but gross margin weakened. Compared to the same quarter last year, revenue and gross profit were higher, but gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.6%
Gross profit
$884.5M
Revenue
$1.5B
Cost of revenue
$650.6M
Quarter-over-quarter change
-1.6 pts
Year-over-year change
-0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 29, 2024 | $1.5B | $862.9M | $643.8M | 57.3% |
| Sep 28, 2024 | $1.6B | $951.6M | $634.4M | 60.0% |
| Dec 28, 2024 | $1.8B | $1.1B | $742.6M | 59.3% |
| Mar 29, 2025 | $1.5B | $884.5M | $650.6M | 57.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 28, 2024
-1.6 pts
Year-over-year change
Mar 30, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined from the prior quarter and the year-ago quarter, indicating that cost of revenue grew faster than revenue. The relationship between revenue and cost of revenue is the primary observable driver of margin change.
Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue also decreased, but gross margin weakened. Compared to the same quarter last year, revenue and gross profit were higher, but gross margin was slightly lower.
Monitor the trend in cost of revenue relative to revenue, as its faster growth has pressured gross margin.