Garmin (GRMN) Margin Decline Challenges Bullish Sentiment on Quality and Premium Valuation

Simply Wall St.10-31

Garmin (GRMN) reported profit margins of 22.6%, down from 25.5% last year, and earnings have grown by 9.4% per year over the last five years. This year’s earnings growth slowed to 3.6%, trailing its ...

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This year’s earnings growth slowed to 3.6%, trailing its ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-durables/nyse-grmn/garmin/news/garmin-grmn-margin-decline-challenges-bullish-sentiment-on-q\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Garmin (GRMN) Margin Decline Challenges Bullish Sentiment on Quality and Premium Valuation</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGarmin (GRMN) Margin Decline Challenges Bullish Sentiment on Quality and Premium Valuation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-10-31 20:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-durables/nyse-grmn/garmin/news/garmin-grmn-margin-decline-challenges-bullish-sentiment-on-q><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Garmin (GRMN) reported profit margins of 22.6%, down from 25.5% last year, and earnings have grown by 9.4% per year over the last five years. This year’s earnings growth slowed to 3.6%, trailing its ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-durables/nyse-grmn/garmin/news/garmin-grmn-margin-decline-challenges-bullish-sentiment-on-q\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GRMN","symbol_name":"佳明","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-durables/nyse-grmn/garmin/news/garmin-grmn-margin-decline-challenges-bullish-sentiment-on-q","article_id":"2580499199","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4111000-choice2-main-header/1585187046786"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/consumer-durables/nyse-grmn/garmin/news/garmin-grmn-margin-decline-challenges-bullish-sentiment-on-q","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2580499199","pubTimestamp":1761913763,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Garmin (GRMN) reported profit margins of 22.6%, down from 25.5% last year, and earnings have grown by 9.4% per year over the last five years. This year’s earnings growth slowed to 3.6%, trailing its own five-year trend and the expectations set for the broader US market, with both earnings and revenue forecast to rise at 6.4% and 7.1% annually. Investors are now weighing Garmin’s consistent track record and ongoing dividend appeal against the reality of compressed margins and a premium...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"GRMN":"佳明","BK4588":"碎股","LU1699723380.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"AP\" (USD) ACC","BK4585":"ETF&股票定投概念","BK4112":"金融交易所和数据","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","BLSH":"Bullish","BK4078":"消费电子产品","BK4533":"AQR资本管理(全球第二大对冲基金)"},"translate_title":"Garmin(GRMN)利润率下降挑战了对质量和溢价估值的看涨情绪","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GRMN":1.5,"BLSH":1.5},"content_text":"Garmin (GRMN) reported profit margins of 22.6%, down from 25.5% last year, and earnings have grown by 9.4% per year over the last five years. This year’s earnings growth slowed to 3.6%, trailing its own five-year trend and the expectations set for the broader US market, with both earnings and revenue forecast to rise at 6.4% and 7.1% annually. Investors are now weighing Garmin’s consistent track record and ongoing dividend appeal against the reality of compressed margins and a premium valuation relative to peers. See our full analysis for Garmin. The next section puts these earnings results side by side with the dominant narratives driving sentiment on Simply Wall St. Let's see which stories stand up to scrutiny and which might be overdue for a rethink. See what the community is saying about Garmin NYSE:GRMN Earnings & Revenue History as at Oct 2025 AdvertisementPremium Services Drive Segment Margins  Garmin’s service and Fitness segment margins are benefiting from strong demand for new premium offerings like Garmin Connect+ and advanced wearables, both cited by the consensus narrative as expanding margins in these areas. The analysts' consensus view highlights that the launch of AI-based health insights and new devices such as the vívoactive 6 smartwatch are expected to fuel subscription-based, higher-margin growth.\n     Consensus notes high-margin service revenues should help offset slower growth rates elsewhere, improving earnings durability. It also credits new Aviation segment products and 23% revenue growth in EMEA for broad-based, positive effects on margin trends.   For a full breakdown of how premium product launches are shifting Garmin's growth drivers, see how the current narratives stack up against these figures. 📊 Read the full Garmin Consensus Narrative.  Operational Expenses Outpace Revenue Growth  Operating expenses, including R&D and SG&A costs, increased 10%, now outpacing forecasted annual revenue growth of 7.1% according to the EDGAR summary and consensus. The analysts' consensus view acknowledges that while revenue is set to grow thanks to new product launches, rising operational expenses could erode operating margins.\n     Consensus narrative highlights that if revenue growth cannot keep up with the expense run rate, current margin compression may continue or worsen. Analysts also point to external risks like commodity prices and trade policy, which, together with Marine and Outdoor segment headwinds, could further pressure margins.    Trading at a Premium to Peers  Garmin is trading at a Price-to-Earnings ratio of 26.3x, more than double the industry average of 10.6x and above closest peer valuation at 11.9x, as noted in the EDGAR summary. The analysts' consensus view notes that despite this premium, analysts set a price target of 231.14, slightly above today’s share price of 214.97, which implies some expect earnings quality and growth drivers to support further upside.\n     Consensus highlights that to justify the target, investors need to see sustained growth and margin stability to support a premium valuation. Yet with DCF fair value at 225.78, there is tension between bullish long-term assumptions and near-term margin compression fueled by rising costs.     Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Garmin on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. Do the numbers suggest a different story to you? Take just a few minutes to build your own viewpoint and shape the narrative. Do it your way. A great starting point for your Garmin research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. See What Else Is Out There Garmin's earnings growth is lagging its historic pace and peers, as rising costs and margin pressure raise questions about its premium valuation. If you’re concerned about overpaying for compressed growth, use our these 831 undervalued stocks based on cash flows to zero in on companies currently trading below their intrinsic value.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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