Garmin Ltd (NYSE:GRMN) Stock Falls on Q3 2025 Revenue Miss Despite Earnings Beat

GARMIN LTD (NYSE:GRMN) reported financial results for the third quarter of 2025, delivering a mixed performance that has triggered a notable market reaction. While the company achieved record quarterly figures in certain areas, it fell slightly short of analyst sales expectations, leading to a sharp decline in its stock price during pre-market trading.

Third Quarter Performance Versus Estimates

The company’s third quarter results presented a divergence between earnings and revenue performance compared to Wall Street forecasts. Garmin reported non-GAAP earnings per share of $1.99, which was nearly in line with the analyst consensus estimate of $2.00. However, the company’s top-line result did not meet expectations.

• Reported Revenue: $1.77 billion
• Estimated Revenue: $1.79 billion
• Reported EPS (non-GAAP): $1.99
• Estimated EPS (non-GAAP): $2.00

The marginal revenue miss, despite being relatively small, appears to be the primary driver behind the negative investor sentiment observed in the immediate aftermath of the report.

Market Reaction to Earnings

The financial markets responded decisively to the earnings release. In pre-market trading, Garmin stock was down approximately 6.5%, indicating a significant negative reaction from investors. This sharp decline contrasts with the stock's more stable performance over recent weeks, which had shown little net change. The market's focus on the sales shortfall, even alongside an earnings beat, underscores the high expectations built into the stock and the current investor emphasis on robust top-line growth.

Press Release Highlights and Forward Outlook

According to the company's press release, Garmin emphasized positive achievements for the quarter, including record third-quarter revenue and operating income. A key positive takeaway from the announcement was the decision by management to raise its full-year earnings per share guidance. This suggests that despite the quarterly sales miss, the company's overall profitability and operational efficiency remain strong. While the press release does not provide a specific numerical revenue outlook to compare against the full-year analyst sales estimate of $7.28 billion, the raised EPS guidance signals underlying confidence in the business's financial health.

Looking Ahead

Analyst estimates for the upcoming fourth quarter of 2025 project revenue of approximately $2.05 billion and earnings to be a focal point for investors. The company's ability to meet or exceed these forecasts, particularly on the sales front, will be critical in determining whether it can regain positive momentum after the current market disappointment.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data here.

Disclaimer: This article presents factual information based on recent earnings reports and market data for informational purposes only. It is not intended as investment advice, financial guidance, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.