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Cover and table of contents
United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 27, 2025
or
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 001-41118
GARMIN LTD**.**
(Exact name of Company as specified in its charter)
| Switzerland | 98-0229227 | |
| (State or other jurisdiction | (I.R.S. Employer | |
| of incorporation or organization) | identification no.) | |
| Mühlentalstrasse 2 | ||
| 8200 Schaffhausen | ||
| Switzerland | N/A | |
| (Address of principal executive offices) | (Zip Code) |
Company’s telephone number, including area code: +41 52 630 1600
Securities registered pursuant to Section 12(b) of the Act:
| Registered Shares, $0.10 Per Share Par Value | GRMN | New York Stock Exchange | ||
| (Title of each class) | (Trading Symbol) | (Name of each exchange on which registered) |
Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☑ NO ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☑ NO ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer | ☑ | Accelerated Filer | ☐ | |
| Non-accelerated Filer | ☐ | Smaller reporting company | ☐ | |
| Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. YES ☐ NO ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YES ☐ NO ☑
Number of shares outstanding of the registrant’s common shares as of October 24, 2025
Registered Shares, $0.10 par value: 192,334,806 (excluding treasury shares)
Garmin Ltd.
Form 10-Q
Quarter Ended September 27, 2025
Table of Contents
i
Part I - Financial Information
Item I - Condensed Consolidated Financial Statements
Garmin Ltd. and Subsidiaries
Condensed Consolidated State****ments of Income (Unaudited)
(In thousands, except per share information)
| 13-Weeks Ended | 39-Weeks Ended | |||||||||||||||
| September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |||||||||||||
| Net sales | $ | 1,770,901 | $ | 1,586,022 | $ | 5,120,564 | $ | 4,474,342 | ||||||||
| Cost of goods sold | 724,414 | 634,423 | 2,122,521 | 1,857,712 | ||||||||||||
| Gross profit | 1,046,487 | 951,599 | 2,998,043 | 2,616,630 | ||||||||||||
| Research and development expense | 286,464 | 249,162 | 831,247 | 734,848 | ||||||||||||
| Selling, general and administrative expenses | 303,220 | 264,962 | 904,874 | 803,869 | ||||||||||||
| Total operating expense | 589,684 | 514,124 | 1,736,121 | 1,538,717 | ||||||||||||
| Operating income | 456,803 | 437,475 | 1,261,922 | 1,077,913 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 32,085 | 28,830 | 94,316 | 83,143 | ||||||||||||
| Foreign currency gains | 20,334 | 18,131 | 21,582 | 15,584 | ||||||||||||
| Other income | 598 | 1,814 | 1,329 | 2,623 | ||||||||||||
| Total other income (expense) | 53,017 | 48,775 | 117,227 | 101,350 | ||||||||||||
| Income before income taxes | 509,820 | 486,250 | 1,379,149 | 1,179,263 | ||||||||||||
| Income tax provision | 108,205 | 87,139 | 243,943 | 203,560 | ||||||||||||
| Net income | $ | 401,615 | $ | 399,111 | $ | 1,135,206 | $ | 975,703 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 2.09 | $ | 2.08 | $ | 5.90 | $ | 5.08 | ||||||||
| Diluted | $ | 2.08 | $ | 2.07 | $ | 5.87 | $ | 5.06 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 192,464 | 192,201 | 192,510 | 192,055 | ||||||||||||
| Diluted | 193,533 | 193,171 | 193,551 | 192,940 |
See accompanying notes.
Garmin Ltd. and Subsidiaries
Condensed Consolidated Statements o****f Comprehensive Income (Unaudited)
(In thousands)
| 13-Weeks Ended | 39-Weeks Ended | |||||||||||||||
| September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |||||||||||||
| Net income | $ | 401,615 | $ | 399,111 | $ | 1,135,206 | $ | 975,703 | ||||||||
| Foreign currency translation adjustment | (62,713 | ) | 62,176 | 169,812 | (17,199 | ) | ||||||||||
| Change in fair value of available-for-sale marketable securities, net of deferred taxes | 7,531 | 25,123 | 27,417 | 32,118 | ||||||||||||
| Comprehensive income | $ | 346,433 | $ | 486,410 | $ | 1,332,435 | $ | 990,622 |
See accompanying notes.
Garmin Ltd. and Subsidiaries
Condensed Consolidated Ba****lance Sheets (Unaudited)
(In thousands)
| September 27, 2025 | December 28, 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,072,845 | $ | 2,079,468 | ||||
| Marketable securities | 466,785 | 421,270 | ||||||
| Accounts receivable, net | 955,614 | 983,404 | ||||||
| Inventories | 1,887,930 | 1,473,978 | ||||||
| Deferred costs | 17,468 | 24,040 | ||||||
| Prepaid expenses and other current assets | 410,301 | 353,993 | ||||||
| Total current assets | 5,810,943 | 5,336,153 | ||||||
| Property and equipment, net of accumulated depreciation of $1,278,084 and $1,139,156 | 1,296,198 | 1,236,884 | ||||||
| Operating lease right-of-use assets | 187,796 | 164,656 | ||||||
| Noncurrent marketable securities | 1,376,624 | 1,198,331 | ||||||
| Deferred income tax assets | 782,093 | 822,521 | ||||||
| Noncurrent deferred costs | 4,830 | 6,898 | ||||||
| Goodwill | 757,290 | 603,947 | ||||||
| Other intangible assets, net | 205,985 | 154,163 | ||||||
| Other noncurrent assets | 101,119 | 106,974 | ||||||
| Total assets | $ | 10,522,878 | $ | 9,630,527 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 378,021 | $ | 359,365 | ||||
| Salaries and benefits payable | 240,077 | 210,879 | ||||||
| Accrued warranty costs | 71,720 | 62,473 | ||||||
| Accrued sales program costs | 86,576 | 108,492 | ||||||
| Other accrued expenses | 231,156 | 216,721 | ||||||
| Deferred revenue | 104,984 | 110,997 | ||||||
| Income taxes payable | 293,476 | 294,582 | ||||||
| Dividend payable | 346,286 | 144,349 | ||||||
| Total current liabilities | 1,752,296 | 1,507,858 | ||||||
| Deferred income tax liabilities | 109,044 | 103,274 | ||||||
| Noncurrent income taxes payable | 3,425 | 7,014 | ||||||
| Noncurrent deferred revenue | 23,187 | 28,321 | ||||||
| Noncurrent operating lease liabilities | 155,771 | 134,886 | ||||||
| Other noncurrent liabilities | 914 | 776 | ||||||
| Stockholders’ equity: | ||||||||
| Common shares (194,901 and 194,901 shares authorized and issued;192,384 and 192,468 shares outstanding) | 19,490 | 19,490 | ||||||
| Additional paid-in capital | 2,359,964 | 2,247,484 | ||||||
| Treasury shares (2,517 and 2,433 shares) | (392,738 | ) | (270,521 | ) | ||||
| Retained earnings | 6,441,534 | 5,999,183 | ||||||
| Accumulated other comprehensive income (loss) | 49,991 | (147,238 | ) | |||||
| Total stockholders’ equity | 8,478,241 | 7,848,398 | ||||||
| Total liabilities and stockholders’ equity | $ | 10,522,878 | $ | 9,630,527 |
See accompanying notes.
Garmin Ltd. and Subsidiaries
Condensed Consolidated Stateme****nts of Cash Flows (Unaudited)
(In thousands)
| 39-Weeks Ended | ||||||||
| September 27, 2025 | September 28, 2024 | |||||||
| Operating Activities: | ||||||||
| Net income | $ | 1,135,206 | $ | 975,703 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 115,633 | 102,343 | ||||||
| Amortization | 26,874 | 30,849 | ||||||
| Loss (gain) on sale or disposal of property and equipment | 375 | (48 | ) | |||||
| Unrealized foreign currency gains | (37,606 | ) | (25,486 | ) | ||||
| Deferred income taxes | 19,324 | (53,966 | ) | |||||
| Stock compensation expense | 125,003 | 101,039 | ||||||
| Realized loss on marketable securities | 857 | 29 | ||||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable, net of allowance for doubtful accounts | 68,818 | (103,567 | ) | |||||
| Inventories | (324,880 | ) | (163,865 | ) | ||||
| Other current and noncurrent assets | (18,466 | ) | (47,413 | ) | ||||
| Accounts payable | (7,531 | ) | 124,315 | |||||
| Other current and noncurrent liabilities | 1,944 | (6,987 | ) | |||||
| Deferred revenue | (11,603 | ) | 5,885 | |||||
| Deferred costs | 8,703 | (3,987 | ) | |||||
| Income taxes | (23,077 | ) | 13,737 | |||||
| Net cash provided by operating activities | 1,079,574 | 948,581 | ||||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (146,273 | ) | (108,869 | ) | ||||
| Purchase of marketable securities | (724,091 | ) | (363,783 | ) | ||||
| Redemption of marketable securities | 531,804 | 277,334 | ||||||
| Net (payments for) cash from acquisitions | (175,655 | ) | 5,011 | |||||
| Other investing activities, net | 387 | (458 | ) | |||||
| Net cash used in investing activities | (513,828 | ) | (190,765 | ) | ||||
| Financing activities: | ||||||||
| Dividends | (490,919 | ) | (428,373 | ) | ||||
| Proceeds from issuance of treasury shares related to equity awards | 29,065 | 24,530 | ||||||
| Purchase of treasury shares related to equity awards | (33,476 | ) | (16,313 | ) | ||||
| Purchase of treasury shares under share repurchase plan | (130,149 | ) | (29,278 | ) | ||||
| Net cash used in financing activities | (625,479 | ) | (449,434 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 53,125 | 7,536 | ||||||
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (6,608 | ) | 315,918 | |||||
| Cash, cash equivalents, and restricted cash at beginning of period | 2,080,154 | 1,694,156 | ||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 2,073,546 | $ | 2,010,074 |
See accompanying notes.
Garmin Ltd. and Subsidiaries
Condensed Consolidated Stateme****nts of Stockholders’ Equity (Unaudited)
For the 13-Weeks Ended September 27, 2025 and September 28, 2024
(In thousands)
| Common Shares | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||
| Balance at June 29, 2024 | $ | 19,490 | $ | 2,183,158 | $ | (223,899 | ) | $ | 5,164,227 | $ | (137,994 | ) | $ | 7,004,982 | ||||||||||
| Net income | — | — | — | 399,111 | — | 399,111 | ||||||||||||||||||
| Translation adjustment | — | — | — | — | 62,176 | 62,176 | ||||||||||||||||||
| Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $8,613 | — | — | — | — | 25,123 | 25,123 | ||||||||||||||||||
| Comprehensive income | 486,410 | |||||||||||||||||||||||
| Dividends | — | — | — | 238 | — | 238 | ||||||||||||||||||
| Issuance of treasury shares related to equity awards | — | (43 | ) | 43 | — | — | — | |||||||||||||||||
| Stock compensation | — | 35,055 | — | — | — | 35,055 | ||||||||||||||||||
| Purchase of treasury shares related to equity awards | — | — | (49 | ) | — | — | (49 | ) | ||||||||||||||||
| Purchase of treasury shares under share repurchase plan, including any associated excise tax | — | — | (20,089 | ) | — | — | (20,089 | ) | ||||||||||||||||
| Balance at September 28, 2024 | $ | 19,490 | $ | 2,218,170 | $ | (243,994 | ) | $ | 5,563,576 | $ | (50,695 | ) | $ | 7,506,547 | ||||||||||
| Common Shares | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||
| Balance at June 28, 2025 | $ | 19,490 | $ | 2,317,294 | $ | (356,358 | ) | $ | 6,039,512 | $ | 105,173 | $ | 8,125,111 | |||||||||||
| Net income | — | — | — | 401,615 | — | 401,615 | ||||||||||||||||||
| Translation adjustment | — | — | — | — | (62,713 | ) | (62,713 | ) | ||||||||||||||||
| Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $2,616 | — | — | — | — | 7,531 | 7,531 | ||||||||||||||||||
| Comprehensive income | 346,433 | |||||||||||||||||||||||
| Dividends | — | — | — | 407 | — | 407 | ||||||||||||||||||
| Issuance of treasury shares related to equity awards | — | (54 | ) | 54 | — | — | — | |||||||||||||||||
| Stock compensation | — | 42,724 | — | — | — | 42,724 | ||||||||||||||||||
| Purchase of treasury shares related to equity awards | — | — | (45 | ) | — | — | (45 | ) | ||||||||||||||||
| Purchase of treasury shares under share repurchase plan, including any associated excise tax | — | — | (36,389 | ) | — | — | (36,389 | ) | ||||||||||||||||
| Balance at September 27, 2025 | $ | 19,490 | $ | 2,359,964 | $ | (392,738 | ) | $ | 6,441,534 | $ | 49,991 | $ | 8,478,241 | |||||||||||
See accompanying notes.
Garmin Ltd. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)
For the 39-Weeks Ended September 27, 2025 and September 28, 2024
(In thousands)
| Common Shares | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||
| Balance at December 30, 2023 | $ | 19,588 | $ | 2,125,467 | $ | (330,909 | ) | $ | 5,263,528 | $ | (65,614 | ) | $ | 7,012,060 | ||||||||||
| Net income | — | — | — | 975,703 | — | 975,703 | ||||||||||||||||||
| Translation adjustment | — | — | — | — | (17,199 | ) | (17,199 | ) | ||||||||||||||||
| Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $10,810 | — | — | — | — | 32,118 | 32,118 | ||||||||||||||||||
| Comprehensive income | 990,622 | |||||||||||||||||||||||
| Dividends | — | — | — | (576,580 | ) | — | (576,580 | ) | ||||||||||||||||
| Issuance of treasury shares related to equity awards | — | (8,336 | ) | 32,866 | — | — | 24,530 | |||||||||||||||||
| Stock compensation | — | 101,039 | — | — | — | 101,039 | ||||||||||||||||||
| Purchase of treasury shares related to equity awards | — | — | (16,313 | ) | — | — | (16,313 | ) | ||||||||||||||||
| Purchase of treasury shares under share repurchase plan, including any associated excise tax | — | — | (28,811 | ) | — | — | (28,811 | ) | ||||||||||||||||
| Cancellation of treasury shares | (98 | ) | — | 99,173 | (99,075 | ) | — | — | ||||||||||||||||
| Balance at September 28, 2024 | $ | 19,490 | $ | 2,218,170 | $ | (243,994 | ) | $ | 5,563,576 | $ | (50,695 | ) | $ | 7,506,547 | ||||||||||
| Common Shares | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||
| Balance at December 28, 2024 | $ | 19,490 | $ | 2,247,484 | $ | (270,521 | ) | $ | 5,999,183 | $ | (147,238 | ) | $ | 7,848,398 | ||||||||||
| Net income | — | — | — | 1,135,206 | — | 1,135,206 | ||||||||||||||||||
| Translation adjustment | — | — | — | — | 169,812 | 169,812 | ||||||||||||||||||
| Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $9,112 | — | — | — | — | 27,417 | 27,417 | ||||||||||||||||||
| Comprehensive income | 1,332,435 | |||||||||||||||||||||||
| Dividends | — | — | — | (692,855 | ) | — | (692,855 | ) | ||||||||||||||||
| Issuance of treasury shares related to equity awards | — | (12,523 | ) | 41,588 | — | — | 29,065 | |||||||||||||||||
| Stock compensation | — | 125,003 | — | — | — | 125,003 | ||||||||||||||||||
| Purchase of treasury shares related to equity awards | — | — | (33,476 | ) | — | — | (33,476 | ) | ||||||||||||||||
| Purchase of treasury shares under share repurchase plan, including any associated excise tax | — | — | (130,329 | ) | — | — | (130,329 | ) | ||||||||||||||||
| Cancellation of treasury shares | — | — | — | — | — | — | ||||||||||||||||||
| Balance at September 27, 2025 | $ | 19,490 | $ | 2,359,964 | $ | (392,738 | ) | $ | 6,441,534 | $ | 49,991 | $ | 8,478,241 | |||||||||||
See accompanying notes.
Garmin Ltd. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
September 27, 2025
(In thousands, except per share information)
1. Accounting Policies
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements include the accounts of Garmin Ltd. and its wholly-owned subsidiaries (collectively, we, our, us, the Company or Garmin). Intercompany balances and transactions have been eliminated.
The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The condensed consolidated balance sheet at December 28, 2024 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Additionally, the condensed consolidated financial statements should be read in conjunction with Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q, and the Company’s Annual Report on Form 10-K for the year ended December 28, 2024.
The Company's operating results are subject to fluctuations associated with seasonal demand for consumer products, the timing of new product introductions, and original equipment manufacturer (OEM) customer production schedules. Therefore, operating results for the 13-week and 39-week periods ended September 27, 2025 are not necessarily indicative of the results that may be expected for the year ending December 27, 2025.
The Company’s fiscal year is based on a 52-week or 53-week period ending on the last Saturday of the calendar year. Therefore, the financial results of certain 53-week fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. The quarters ended September 27, 2025 and September 28, 2024 both contain operating results for 13 weeks.
Significant Accounting Policies
For a description of the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements, refer to Note 1, “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024. There were no material changes to the Company’s significant accounting policies during the 39-week period ended September 27, 2025.
Recently Adopted Accounting Standards
There are no recently adopted accounting standards that have a material impact on the Company's consolidated financial statements, accounting policies, processes, or systems.
Recently Issued Accounting Pronouncements Not Yet Adopted
Disaggregation of Income Statement Expenses
In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update No. 2024-03, Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires additional disaggregated disclosures in the notes to financial statements for certain categories of expenses that are included in the expense captions on the face of the statements of income, on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments may be applied using either a prospective or retrospective approach. The Company is currently evaluating the impact that the updated standard will have on its financial statement disclosures.
2. Revenue
In order to further depict how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors, we disaggregate revenue (“net sales”) by geographic region, major product category, and pattern of recognition.
Disaggregated revenue by geographic region (Americas, EMEA, and APAC) is presented in Note 11 – Segment Information and Geographic Data. Note 11 also contains disaggregated revenue information of the five major product categories identified by the Company – fitness, outdoor, aviation, marine, and auto OEM.
A large majority of the Company’s sales are recognized on a point in time basis, usually once the product is shipped and title and risk of loss have transferred to the customer. Sales recognized over a period of time are primarily within the outdoor, aviation, and auto OEM segments and relate to performance obligations that are satisfied over the estimated life of the product or contractual service period. Revenue disaggregated by the timing of transfer of the goods or services is presented in the table below:
| 13-Weeks Ended | 39-Weeks Ended | |||||||||||||||
| September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |||||||||||||
| Point in time | $ | 1,685,604 | $ | 1,496,940 | $ | 4,870,953 | $ | 4,231,561 | ||||||||
| Over time | 85,297 | 89,082 | 249,611 | 242,781 | ||||||||||||
| Net sales | $ | 1,770,901 | $ | 1,586,022 | $ | 5,120,564 | $ | 4,474,342 |
Transaction price and costs associated with the Company’s unsatisfied performance obligations are reflected as deferred revenue and deferred costs, respectively, on the Company’s condensed consolidated balance sheets. Such amounts are recognized ratably over the applicable estimated useful life or contractual service period. Changes in deferred revenue and costs during the 39-week period ended September 27, 2025 are presented below:
| 39-Weeks Ended September 27, 2025 | ||||||||
| Deferred Revenue (1) | Deferred Costs (2) | |||||||
| Balance, beginning of period | $ | 139,318 | $ | 30,938 | ||||
| Deferrals in period | 238,464 | 45,125 | ||||||
| Recognition of deferrals in period | (249,611 | ) | (53,765 | ) | ||||
| Balance, end of period | $ | 128,171 | $ | 22,298 |
(1) Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the condensed consolidated balance sheets.
(2) Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the condensed consolidated balance sheets.
Of the $249,611 of deferred revenue recognized in the 39-week period ended September 27, 2025, approximately $82,000 was deferred as of the beginning of the period. Of the $128,171 of deferred revenue as of September 27, 2025, the Company expects to recognize approximately 87% ratably over a total period of three years or less.
3. Earnings Per Share
The following table sets forth the computation of basic and diluted net income per share. Stock options, stock appreciation rights, and restricted stock units are collectively referred to as “equity awards”. There were no anti-dilutive equity awards excluded from the calculation of diluted net income per share for the periods presented below.
| 13-Weeks Ended | 39-Weeks Ended | |||||||||||||||
| September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |||||||||||||
| Numerator: | ||||||||||||||||
| Numerator for basic and diluted net income per share – net income | $ | 401,615 | $ | 399,111 | $ | 1,135,206 | $ | 975,703 | ||||||||
| Denominator: | ||||||||||||||||
| Denominator for basic net income per share – weighted-average common shares | 192,464 | 192,201 | 192,510 | 192,055 | ||||||||||||
| Effect of dilutive equity awards | 1,069 | 970 | 1,041 | 885 | ||||||||||||
| Denominator for diluted net income per share – adjusted weighted-average common shares | 193,533 | 193,171 | 193,551 | 192,940 | ||||||||||||
| Basic net income per share | $ | 2.09 | $ | 2.08 | $ | 5.90 | $ | 5.08 | ||||||||
| Diluted net income per share | $ | 2.08 | $ | 2.07 | $ | 5.87 | $ | 5.06 |
4. Marketable Securities
Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The accounting guidance classifies the inputs used to measure fair value into the following hierarchy:
| Level 1 | Unadjusted quoted prices in active markets for the identical asset or liability |
| Level 2 | Observable inputs for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability |
| Level 3 | Unobservable inputs for the asset or liability |
The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Valuation is based on prices obtained from an independent pricing vendor using both market and income approaches. The primary inputs to the valuation include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, contractual cash flows, benchmark yields, and credit spreads.
The method described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
Marketable securities classified as available-for-sale securities are summarized below:
| Available-For-Sale Securities as of September 27, 2025 | ||||||||||||||||||
| Fair Value Level | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||
| U.S. Treasury securities | Level 2 | $ | 3,300 | $ | 51 | $ | — | $ | 3,351 | |||||||||
| Agency securities | Level 2 | 53,811 | 69 | (255 | ) | 53,625 | ||||||||||||
| Mortgage-backed securities | Level 2 | 94,262 | 485 | (1,634 | ) | 93,113 | ||||||||||||
| Corporate debt securities | Level 2 | 1,447,404 | 11,117 | (7,348 | ) | 1,451,173 | ||||||||||||
| Municipal securities | Level 2 | 243,631 | 619 | (3,645 | ) | 240,605 | ||||||||||||
| Other | Level 2 | 1,594 | — | (52 | ) | 1,542 | ||||||||||||
| Total | $ | 1,844,002 | $ | 12,341 | $ | **(**12,934 | ) | $ | 1,843,409 |
| Available-For-Sale Securities as of December 28, 2024 | ||||||||||||||||||
| Fair Value Level | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||
| U.S. Treasury securities | Level 2 | $ | 4,930 | $ | 8 | $ | — | $ | 4,938 | |||||||||
| Agency securities | Level 2 | 42,236 | 38 | (477 | ) | 41,797 | ||||||||||||
| Mortgage-backed securities | Level 2 | 43,599 | — | (4,375 | ) | 39,224 | ||||||||||||
| Corporate debt securities | Level 2 | 1,281,981 | 1,498 | (23,837 | ) | 1,259,642 | ||||||||||||
| Municipal securities | Level 2 | 281,295 | 21 | (9,907 | ) | 271,409 | ||||||||||||
| Other | Level 2 | 2,683 | 1 | (93 | ) | 2,591 | ||||||||||||
| Total | $ | 1,656,724 | $ | 1,566 | $ | **(**38,689 | ) | $ | 1,619,601 |
The primary objectives of the Company’s investment policy are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk. The fair value of securities varies from period to period due to changes in interest rates, the performance of the underlying collateral, and the credit performance of the underlying issuer, among other factors.
Accrued interest receivable, which totaled $16,812 as of September 27, 2025, is excluded from both the fair value and amortized cost basis of available-for-sale securities and is included within prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets. The Company writes off impaired accrued interest on a timely basis, generally within 30 days of the due date, by reversing interest income. No accrued interest was written off during the 39-week period ended September 27, 2025.
The Company recognizes impairments relating to credit losses of available-for-sale securities through an allowance for credit losses and other income (expense) on the Company’s condensed consolidated statements of income. Impairment not relating to credit losses is recorded in accumulated other comprehensive income (loss) on the Company’s condensed consolidated balance sheets. The cost of securities sold is based on the specific identification method. Approximately 56% of securities in the Company’s portfolio were at an unrealized loss position as of September 27, 2025.
The following tables display additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities in an unrealized loss position as of September 27, 2025 and December 28, 2024.
| As of September 27, 2025 | ||||||||||||||||||||||||
| Less than 12 Consecutive Months | 12 Consecutive Months or Longer | Total | ||||||||||||||||||||||
| Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
| Agency securities | $ | (101 | ) | $ | 8,230 | $ | (154 | ) | $ | 6,846 | $ | (255 | ) | $ | 15,076 | |||||||||
| Mortgage-backed securities | (205 | ) | 17,569 | (1,429 | ) | 15,564 | (1,634 | ) | 33,133 | |||||||||||||||
| Corporate debt securities | (1,745 | ) | 256,881 | (5,603 | ) | 350,324 | (7,348 | ) | 607,205 | |||||||||||||||
| Municipal securities | (194 | ) | 13,582 | (3,451 | ) | 166,593 | (3,645 | ) | 180,175 | |||||||||||||||
| Other | (3 | ) | 515 | (49 | ) | 1,027 | (52 | ) | 1,542 | |||||||||||||||
| Total | $ | **(**2,248 | ) | $ | 296,777 | $ | **(**10,686 | ) | $ | 540,354 | $ | **(**12,934 | ) | $ | 837,131 |
| As of December 28, 2024 | ||||||||||||||||||||||||
| Less than 12 Consecutive Months | 12 Consecutive Months or Longer | Total | ||||||||||||||||||||||
| Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
| Agency securities | $ | (125 | ) | $ | 24,153 | $ | (352 | ) | $ | 6,647 | $ | (477 | ) | $ | 30,800 | |||||||||
| Mortgage-backed securities | (137 | ) | 9,803 | (4,238 | ) | 29,421 | (4,375 | ) | 39,224 | |||||||||||||||
| Corporate debt securities | (4,503 | ) | 350,289 | (19,334 | ) | 667,176 | (23,837 | ) | 1,017,465 | |||||||||||||||
| Municipal securities | (228 | ) | 35,001 | (9,679 | ) | 226,901 | (9,907 | ) | 261,902 | |||||||||||||||
| Other | — | — | (93 | ) | 1,619 | (93 | ) | 1,619 | ||||||||||||||||
| Total | $ | **(**4,993 | ) | $ | 419,246 | $ | **(**33,696 | ) | $ | 931,764 | $ | **(**38,689 | ) | $ | 1,351,010 |
As of September 27, 2025 and December 28, 2024, the Company had not recognized an allowance for credit losses on any securities in an unrealized loss position.
The Company has not recorded an allowance for credit losses and charge to other income (expense) for the unrealized losses on agency, mortgage-backed, corporate debt, municipal, and other securities presented above because the Company does not consider the declines in fair value to have resulted from credit losses. The Company has not observed a significant deterioration in credit quality of these securities, which are highly rated with moderate to low credit risk. Declines in value are largely attributable to current global economic conditions. The securities continue to make timely principal and interest payments, and the fair values are expected to recover as they approach maturity. Management does not intend to sell the securities nor is it more likely than not that the Company will be required to sell the securities, before the respective recoveries of their amortized cost bases, which may be maturity.
The amortized cost and fair value of marketable securities at September 27, 2025, by maturity, are shown below.
| Amortized Cost | Fair Value | |||||||
| Due in one year or less | $ | 471,374 | $ | 466,785 | ||||
| Due after one year through five years | 1,328,961 | 1,334,549 | ||||||
| Due after five years through ten years | 38,923 | 38,084 | ||||||
| Due after ten years | 4,744 | 3,991 | ||||||
| Total | $ | 1,844,002 | $ | 1,843,409 |
5. Income Taxes
The Company recorded income tax expense of $108,205 in the 13-week period ended September 27, 2025, compared to income tax expense of $87,139 in the 13-week period ended September 28, 2024. The effective tax rate was 21.2% in the third quarter of 2025, compared to 17.9% in the third quarter of 2024. The increase in the effective tax rate in the current quarter was primarily driven by the U.S. tax legislation enacted during the current quarter, which, among other things, changed capitalization requirements of certain research and development costs, resulting in a year-to-date adjustment due to a decrease in certain expected U.S. tax deductions and credits.
The Company recorded income tax expense of $243,943 in the 39-week period ended September 27, 2025, compared to income tax expense of $203,560 in the 39-week period ended September 28, 2024. The effective tax rate was 17.7% in the first three quarters of 2025, compared to 17.3% in the first three quarters of 2024. The increase in the effective tax rate in the current period was primarily driven by the U.S. tax legislation enacted during the current quarter, which, among other things, changed capitalization requirements of certain research and development costs, resulting in a decrease in certain expected U.S. tax deductions and credits.
6. Inventories
The details of inventories consisted of the following:
| September 27, 2025 | December 28, 2024 | |||||||
| Raw materials | $ | 615,698 | $ | 522,210 | ||||
| Work-in-process | 246,694 | 219,294 | ||||||
| Finished goods | 1,025,538 | 732,474 | ||||||
| Inventories | $ | 1,887,930 | $ | 1,473,978 |
7. Warranty Reserves
The Company accrues for estimated future warranty costs at the time products are sold. The Company provides standard warranties to its retail partners and end-users. The standard warranty generally provides for products to be free from defects in materials or worksmanship, and the warranty period is generally one to two years from the date of shipment, while certain aviation, marine, and auto OEM products have a standard warranty period of two years or more from the date of installation. The Company’s estimates of costs to service its warranty obligations are based on historical experience and management’s expectations and judgments of future conditions, with most claims resolved within a year of the sale. The following reconciliation presents details of the changes in the Company's accrued warranty costs:
| 13-Weeks Ended | 39-Weeks Ended | |||||||||||||||
| September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |||||||||||||
| Balance - beginning of period | $ | 71,197 | $ | 58,253 | $ | 62,473 | $ | 55,738 | ||||||||
| Accrual for products sold (1) | 27,196 | 19,039 | 80,470 | 64,334 | ||||||||||||
| Expenditures | (26,673 | ) | (19,309 | ) | (71,223 | ) | (62,089 | ) | ||||||||
| Balance - end of period | $ | 71,720 | $ | 57,983 | $ | 71,720 | $ | 57,983 |
(1) Changes in cost estimates related to pre-existing warranties were not material and are aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line.
8. Commitments and Contingencies
Commitments
The Company is party to certain commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily consist of payments for inventory, capital expenditures, and other indirect purchases in connection with conducting its business. The aggregate amount of purchase orders and other commitments open as of September 27, 2025 that may represent noncancelable unconditional purchase obligations having a remaining term in excess of one year was approximately $386,000.
Certain cash balances are held as collateral in relation to bank guarantees. This restricted cash is reported within other assets on the condensed consolidated balance sheets and totaled $701 and $685 on September 27, 2025 and December 28, 2024, respectively. The total of the cash and cash equivalents balance and the restricted cash reported within other assets in the condensed consolidated balance sheets equals the total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows.
Contingencies
Management of the Company currently does not believe it is reasonably possible that the Company may have incurred a material loss, or a material loss in excess of recorded accruals, with respect to loss contingencies in the aggregate, for the fiscal quarter ended September 27, 2025. The results of legal proceedings, investigations and claims, however, cannot be predicted with certainty. An adverse resolution of one or more of such matters in excess of management’s expectations could have a material adverse effect in the particular quarter or fiscal year in which a loss is recorded, but based on information currently known, the Company does not believe it is likely that losses from such matters would have a material adverse effect on the Company’s business or its consolidated financial position, results of operations or cash flows.
The Company settled or resolved certain matters during the 13-week and 39-week periods ended September 27, 2025 that did not individually or in the aggregate have a material impact on the Company’s business or its consolidated financial position, results of operations or cash flows.
9. Stockholders' Equity
Dividends
Under Swiss corporate law, dividends must be approved by shareholders at the annual general meeting of the Company’s shareholders. Approved dividends are payable in four equal installments on dates to be determined by the Board of Directors. A reduction of retained earnings and a corresponding liability are recorded at the time of shareholders' approval and are periodically adjusted based on the number of applicable shares outstanding.
The Company's shareholders approved the following dividends:
| Approval Date | Dividend Payment Date | Record Date | Dividend Per Share | |||||
| Fiscal 2025 | ||||||||
| June 6, 2025 | June 27, 2025 | June 16, 2025 | $ | 0.90 | ||||
| June 6, 2025 | September 26, 2025 | September 12, 2025 | $ | 0.90 | ||||
| June 6, 2025 | December 26, 2025 | December 12, 2025 | $ | 0.90 | ||||
| June 6, 2025 | March 27, 2026 | March 13, 2026 | $ | 0.90 | ||||
| Total | $ | 3.60 | ||||||
| Fiscal 2024 | ||||||||
| June 7, 2024 | June 28, 2024 | June 17, 2024 | $ | 0.75 | ||||
| June 7, 2024 | September 27, 2024 | September 13, 2024 | $ | 0.75 | ||||
| June 7, 2024 | December 27, 2024 | December 13, 2024 | $ | 0.75 | ||||
| June 7, 2024 | March 28, 2025 | March 14, 2025 | $ | 0.75 | ||||
| Total | $ | 3.00 | ||||||
| Fiscal 2023 | ||||||||
| June 9, 2023 | June 30, 2023 | June 20, 2023 | $ | 0.73 | ||||
| June 9, 2023 | September 29, 2023 | September 15, 2023 | $ | 0.73 | ||||
| June 9, 2023 | December 29, 2023 | December 15, 2023 | $ | 0.73 | ||||
| June 9, 2023 | March 29, 2024 | March 15, 2024 | $ | 0.73 | ||||
| Total | $ | 2.92 | ||||||
Share Repurchase Program
On February 16, 2024, the Board of Directors approved a share repurchase program (the “2024 Program”) authorizing the Company to repurchase up to $300,000 of the common shares of Garmin Ltd., exclusive of the cost of any associated excise tax. The timing and volume of share repurchases are subject to market conditions, business conditions and applicable laws, and are at management’s discretion. Share repurchases may be made from time to time in the open market or in privately negotiated transactions, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The 2024 Program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time. The 2024 Program expires on December 26, 2026. As of September 27, 2025, the Company had repurchased 985 shares for $193,096, leaving $106,904 available to repurchase additional shares under the 2024 Program.
Treasury Shares
In March 2024, the Board of Directors authorized the cancellation of 979 shares previously purchased under a share repurchase program. The capital reduction by cancellation of these shares became effective in March 2024. Total stockholders’ equity reported for the Company was not affected.
10. Accumulated Other Comprehensive Income (Loss)
The following provides required disclosure of changes in accumulated other comprehensive income (loss) balances by component for the 13-week and 39-week periods ended September 27, 2025:
| 13-Weeks Ended September 27, 2025 | ||||||||||||
| Foreign currency translation adjustment | Net gains (losses) on available-for-sale securities | Total | ||||||||||
| Balance - beginning of period | $ | 115,659 | $ | (10,486 | ) | $ | 105,173 | |||||
| Other comprehensive income (loss) before reclassification, net of income tax expense of $2,576 | (62,713 | ) | 7,420 | (55,293 | ) | |||||||
| Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense), net of income tax benefit of $40 included in income tax provision | — | 111 | 111 | |||||||||
| Net current-period other comprehensive income | (62,713 | ) | 7,531 | (55,182 | ) | |||||||
| Balance - end of period | $ | 52,946 | $ | (2,955 | ) | $ | 49,991 |
| 39-Weeks Ended September 27, 2025 | ||||||||||||
| Foreign currency translation adjustment | Net gains (losses) on available-for-sale securities | Total | ||||||||||
| Balance - beginning of period | $ | (116,866 | ) | $ | (30,372 | ) | $ | (147,238 | ) | |||
| Other comprehensive income (loss) before reclassification, net of income tax expense of $8,975 | 169,812 | 26,697 | 196,509 | |||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense), net of income tax benefit of $137 included in income tax provision | — | 720 | 720 | |||||||||
| Net current-period other comprehensive income | 169,812 | 27,417 | $ | 197,229 | ||||||||
| Balance - end of period | $ | 52,946 | $ | (2,955 | ) | $ | 49,991 |
11. Segment Information and Geographic Data
Garmin is organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM, which represent the primary markets served by the Company. These operating segments are also the Company's reportable segments.
The Company’s Chief Executive Officer, who has been identified as the Company’s Chief Operating Decision Maker (CODM), primarily uses operating income as the measure of profit or loss to assess segment performance and allocate resources. Operating income represents net sales less costs of goods sold and operating expenses. Net sales are directly attributed to each segment. Most costs of goods sold and the majority of operating expenses are also directly attributed to each segment, while certain other costs of goods sold and operating expenses are allocated to the
segments in a reasonable manner considering the specific facts and circumstances of the expenses being allocated. The accounting policies of the segments are the same as those described in Note 1 - Accounting Policies. There are no inter-segment sales or transfers.
The Company’s segments share many common resources, infrastructures and assets in the normal course of business, and certain assets are therefore not separately tracked by segment. Thus, the Company does not report accounts receivable, inventories, property and equipment, intangible assets, capital expenditures, depreciation expense, or amortization expense by segment to the CODM.
The CODM utilizes operating income to assess segment performance and make strategic decisions about the allocation of operating and capital resources by analyzing future opportunities and recent operating income results, trends, and variances of each segment in relation to forecasts and historical performance.
Net sales (“revenue”), cost of goods sold, gross profit, significant segment expenses, and operating income (loss) for each of the Company’s five reportable segments are presented below.
| Fitness | Outdoor | Aviation | Marine | Auto OEM | Total | |||||||||||||||||||
| 13-Weeks Ended September 27, 2025 | ||||||||||||||||||||||||
| Net sales | $ | 601,013 | $ | 497,598 | $ | 240,445 | $ | 267,005 | $ | 164,840 | $ | 1,770,901 | ||||||||||||
| Cost of goods sold | 238,164 | 167,849 | 59,737 | 118,767 | 139,897 | 724,414 | ||||||||||||||||||
| Gross profit | 362,849 | 329,749 | 180,708 | 148,238 | 24,943 | 1,046,487 | ||||||||||||||||||
| Research and development expense | 55,192 | 68,497 | 85,655 | 47,986 | 29,134 | 286,464 | ||||||||||||||||||
| Selling, general and administrative expenses | 114,057 | 91,518 | 34,285 | 50,856 | 12,504 | 303,220 | ||||||||||||||||||
| Operating income (loss) | 193,600 | 169,734 | 60,768 | 49,396 | (16,695 | ) | 456,803 | |||||||||||||||||
| 13-Weeks Ended September 28, 2024 | ||||||||||||||||||||||||
| Net sales | $ | 463,887 | $ | 526,551 | $ | 204,631 | $ | 222,244 | $ | 168,709 | $ | 1,586,022 | ||||||||||||
| Cost of goods sold | 180,562 | 167,858 | 50,493 | 99,811 | 135,699 | 634,423 | ||||||||||||||||||
| Gross profit | 283,325 | 358,693 | 154,138 | 122,433 | 33,010 | 951,599 | ||||||||||||||||||
| Research and development expense | 46,004 | 60,882 | 79,795 | 39,844 | 22,637 | 249,162 | ||||||||||||||||||
| Selling, general and administrative expenses | 89,553 | 88,945 | 30,065 | 44,750 | 11,649 | 264,962 | ||||||||||||||||||
| Operating income (loss) | 147,768 | 208,866 | 44,278 | 37,839 | (1,276 | ) | 437,475 | |||||||||||||||||
| 39-Weeks Ended September 27, 2025 | ||||||||||||||||||||||||
| Net sales | $ | 1,591,159 | $ | 1,426,451 | $ | 712,926 | $ | 885,704 | $ | 504,324 | $ | 5,120,564 | ||||||||||||
| Cost of goods sold | 643,498 | 489,738 | 178,844 | 389,195 | 421,246 | 2,122,521 | ||||||||||||||||||
| Gross profit | 947,661 | 936,713 | 534,082 | 496,509 | 83,078 | 2,998,043 | ||||||||||||||||||
| Research and development expense | 158,344 | 198,557 | 254,980 | 138,894 | 80,472 | 831,247 | ||||||||||||||||||
| Selling, general and administrative expenses | 320,374 | 281,754 | 106,594 | 158,434 | 37,718 | 904,874 | ||||||||||||||||||
| Operating income (loss) | 468,943 | 456,402 | 172,508 | 199,181 | (35,112 | ) | 1,261,922 | |||||||||||||||||
| 39-Weeks Ended September 28, 2024 | ||||||||||||||||||||||||
| Net sales | $ | 1,235,182 | $ | 1,332,617 | $ | 639,739 | $ | 821,933 | $ | 444,871 | $ | 4,474,342 | ||||||||||||
| Cost of goods sold | 511,807 | 446,971 | 161,608 | 372,461 | 364,865 | 1,857,712 | ||||||||||||||||||
| Gross profit | 723,375 | 885,646 | 478,131 | 449,472 | 80,006 | 2,616,630 | ||||||||||||||||||
| Research and development expense | 134,818 | 176,444 | 235,336 | 118,242 | 70,008 | 734,848 | ||||||||||||||||||
| Selling, general and administrative expenses | 265,046 | 257,794 | 95,896 | 145,808 | 39,325 | 803,869 | ||||||||||||||||||
| Operating income (loss) | 323,511 | 451,408 | 146,899 | 185,422 | (29,327 | ) | 1,077,913 |
Net sales to external customers by geographic region for the 13-week and 39-week periods ended September 27, 2025 and September 28, 2024 are presented below. Note that Americas includes North America and South America, EMEA includes Europe, the Middle East and Africa, and APAC includes Asia Pacific and Australian Continent.
| 13-Weeks Ended | 39-Weeks Ended | |||||||||||||||
| September 27, 2025 | September 28, 2024 | September 27, 2025 | September 28, 2024 | |||||||||||||
| Americas (1) | $ | 795,624 | $ | 724,572 | $ | 2,419,371 | $ | 2,181,266 | ||||||||
| EMEA | 692,557 | 612,658 | 1,938,912 | 1,618,058 | ||||||||||||
| APAC | 282,720 | 248,792 | 762,281 | 675,018 | ||||||||||||
| Net sales to external customers | $ | 1,770,901 | $ | 1,586,022 | $ | 5,120,564 | $ | 4,474,342 | ||||||||
| (1) The United States is the only country which constitutes greater than 10% of net sales to external customers. |
Next: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations