Garmin Ltd

Strong Financial Performance: Garmin reported a record first-quarter revenue of $1.54 billion, an 11% increase year-over-year, with three business segments achieving double-digit growth. Gross and operating margins were strong at 57.6% and 21.7%, respectively, leading to a record operating income of $333 million, a 12% YOY increase.

Updated Guidance and Modest Demand Reduction: Garmin raised its 2025 revenue guidance to approximately $6.85 billion, up from $6.80 billion. The guidance reflects foreign currency benefits and a cautious assumption of modest demand reduction due to current macroeconomic conditions and potential tariff impacts.

Impact of Tariffs and Supply Chain Challenges: Garmin is facing approximately $100 million in increased costs due to tariffs, primarily related to products sourced outside the U.S. Despite this, the company expects mitigations (including foreign exchange benefits and strategic pricing adjustments) to offset the tariff impacts, maintaining pro forma EPS guidance at $7.80.