Garmin Ltd. stock research
FY2025 Q2
Garmin (GRMN) Gross Margin — Quarter Ended Jun 28, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. The gross margin improved, reflecting a larger increase in gross profit relative to the cost of revenue.
Gross margin takeaway
Quarter ended Jun 28, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. The gross margin improved, reflecting a larger increase in gross profit relative to the cost of revenue.
- The gross margin increase coincided with revenue growing more rapidly than cost of revenue, which supported the margin expansion.
- Compared to the prior quarter, revenue, gross profit, and gross margin were all higher. Versus the same quarter a year ago, the metrics also showed improvement, with gross margin higher than the year-ago level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.8%
Gross profit
$1.1B
Revenue
$1.8B
Cost of revenue
$747.6M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+1.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 28, 2025 | $1.8B | $1.1B | $747.6M | 58.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2025
+1.2 pts
Year-over-year change
Jun 29, 2024
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin increase coincided with revenue growing more rapidly than cost of revenue, which supported the margin expansion.
Compared to the prior quarter, revenue, gross profit, and gross margin were all higher. Versus the same quarter a year ago, the metrics also showed improvement, with gross margin higher than the year-ago level.
Track whether cost of revenue continues to grow at a slower pace than revenue, as the current margin improvement depends on maintaining that favorable spread.