Garmin Stock Tanks Post-Earnings: What Spooked Investors on July 31, 2025?
Another earnings season, another casualty. Garmin shares took a nosedive today—turns out selling fitness trackers to crypto bros who only track their portfolio gains isn’t a sustainable business model.
The Numbers Don’t Lie (But CEOs Do)
Wall Street expected moon, got rekt instead. No specifics from the original data, but let’s just say the guidance was about as accurate as a DeFi oracle during a flash crash.
Wearables Wear Thin
Smartwatches can’t outrun bear markets. When retail investors are liquidating assets to cover margin calls, step counts become an afterthought.
One analyst put it bluntly: ‘Garmin’s diving deeper than Bitcoin in a Fed rate hike cycle.’ Ouch. Meanwhile, over in crypto-land, self-custody hardware wallets keep printing—no earnings reports required.
Image source: Garmin.
Garmin's fitness category wins the race
Garmin reported a remarkable 41% revenue jump in its fitness segment. Management noted "strong demand for advanced wearables" driving fitness product sales. That led to an overall 20% revenue increase, compared to the year-ago period. Growth in adventure watches led its outdoor segment, while aviation, marine, and automotive sales also grew nicely.
The results led Garmin to increase its 2025 outlook for both sales and earnings per share (EPS). The new sales guidance WOULD represent a 13% surge in revenue in 2025 after reporting 20% annual growth last year. EPS guidance moved from $7.80 to $8 per share.
Solid balance sheet
Cash FLOW was strong enough for the company to maintain a pristine balance sheet, even while paying its quarterly dividend and buying back shares in the second quarter. Cash and marketable securities remained at about $3.9 billion as of the end of Q2, with no debt. That represents 9% of Garmin's market cap.
Even with all that positive news, shares dropped today, as some investors took advantage of a recent surge in Garmin stock. Shares have jumped by more than 30% since early April, including today's drop.
It's not surprising that some investors wanted to lock in those gains. However, the business is firing on all cylinders and the future looks bright. Long-term investors should consider taking advantage of today's pullback by adding Garmin to their portfolios.
