Garmin Ltd. stock research
FY2025 Q4
Garmin (GRMN) Gross Margin — Quarter Ended Dec 27, 2025
In the current quarter, revenue increased compared to both the preceding quarter and the same quarter one year earlier, while gross profit also rose. The gross margin remained nearly unchanged, as cost of revenue grew in proportion to revenue.
Gross margin takeaway
Quarter ended Dec 27, 2025 · FY2025 Q4
In the current quarter, revenue increased compared to both the preceding quarter and the same quarter one year earlier, while gross profit also rose. The gross margin remained nearly unchanged, as cost of revenue grew in proportion to revenue.
- The strongest observable driver is the consistent relationship between revenue and cost of revenue, which kept the gross margin stable across the three periods.
- Compared to the preceding quarter, the gross margin was virtually unchanged despite higher revenue and cost of revenue. Similarly, compared to the same quarter one year earlier, the gross margin was nearly identical.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.2%
Gross profit
$1.3B
Revenue
$2.1B
Cost of revenue
$866.7M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-0.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 27, 2025 | $2.1B | $1.3B | $866.7M | 59.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2025
+0.1 pts
Year-over-year change
Dec 28, 2024
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the consistent relationship between revenue and cost of revenue, which kept the gross margin stable across the three periods.
Compared to the preceding quarter, the gross margin was virtually unchanged despite higher revenue and cost of revenue. Similarly, compared to the same quarter one year earlier, the gross margin was nearly identical.
Monitor the trend of cost of revenue relative to revenue, as any deviation from the current proportional relationship could affect gross margin.