Garmin Ltd. stock research
FY2025 Q3
Garmin (GRMN) Gross Margin — Quarter Ended Sep 27, 2025
Revenue was stable sequentially, while cost of revenue decreased slightly, leading to gross profit being lower but gross margin improving. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin weakened.
Gross margin takeaway
Quarter ended Sep 27, 2025 · FY2025 Q3
Revenue was stable sequentially, while cost of revenue decreased slightly, leading to gross profit being lower but gross margin improving. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin weakened.
- The primary margin driver this quarter was the change in cost of revenue relative to revenue. Sequentially, cost of revenue declined while revenue held steady, supporting margin improvement; year over year, cost of revenue increased more than revenue, pressuring margin.
- Sequentially, revenue was stable, gross profit was lower, cost of revenue was lower, and gross margin improved. Compared to the same quarter last year, revenue was higher, gross profit was higher, cost of revenue was higher, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.1%
Gross profit
$1.0B
Revenue
$1.8B
Cost of revenue
$724.4M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.9 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 |
|---|---|---|---|---|
| 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% |
| Sep 27, 2025 | $1.8B | $1.0B | $724.4M | 59.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2025
+0.3 pts
Year-over-year change
Sep 28, 2024
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary margin driver this quarter was the change in cost of revenue relative to revenue. Sequentially, cost of revenue declined while revenue held steady, supporting margin improvement; year over year, cost of revenue increased more than revenue, pressuring margin.
Sequentially, revenue was stable, gross profit was lower, cost of revenue was lower, and gross margin improved. Compared to the same quarter last year, revenue was higher, gross profit was higher, cost of revenue was higher, and gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as divergent growth rates have been a key factor in gross margin movement.