Garmin just posted another set of record-breaking results. The brand reported $1.77 billion in revenue for Q3 2025 – up 12 per cent year-on-year – and a new high for operating income at $457 million.
CEO Cliff Pemble called it “another quarter of strong financial results,” highlighting robust growth in Fitness (+30 per cent), Marine (+20 per cent) and Aviation (+18 per cent).
Yet behind the upbeat numbers, Garmin’s usually rock-solid Outdoor segment, the home of the Fenix, Enduro and Epix lines, dipped 5 per cent.
That’s surprising, given the fanfare around the Fenix 8 and Fenix 8 Pro launches, the latter introducing MicroLED and satellite connectivity for the first time.
The company pinned the decline on “timing and product-cycle dynamics,” but it also raises a bigger question: have we reached peak Fenix?
Too tough for its own good
It’s hard to fault Garmin’s flagship outdoor watches. They’re bulletproof, run for weeks, and still receive new features years after launch.
That longevity is exactly what’s created a new challenge: people simply don’t need to replace them.
Unlike Apple’s annual watch cadence or Samsung’s lifestyle churn, Garmin’s core audience already owns high-end gear that keeps on working.
After multiple boom cycles, the hardcore endurance crowd is saturated. Those who wanted a Fenix already have one.
As a result, Garmin’s premium Outdoor line may be hitting the natural ceiling of its success, which is great for consumers, but trickier for growth.
Pivoting from hardware to ecosystem
Rather than relying on another rugged refresh, Garmin seems to be widening the net.
The company has been busy building services and adjacent categories, from the new Blaze Equine Wellness System to inReach satellite subscriptions and Garmin Messenger connectivity.
These recurring-revenue services tie users deeper into Garmin’s ecosystem, while MicroLED and connected-safety features create fresh upgrade incentives.
Even Pemble hinted at the shift during the earnings call: the brand is “well positioned for the holiday selling season with a strong lineup of innovative products,” signalling a move toward integrated experiences over pure hardware cycles.
Looking ahead to 2026
If Q3 2025 was about proving stability, 2026 will be about evolution.
Expect the new display tech to trickle down into other smartwatches from the brand – maybe the Forerunner and Venu lines – along with slimmer bodies and a heavier focus on health and recovery data powered by AI-style insights.
Garmin’s challenge is no longer convincing people that its watches are good; instead, it’s convincing them they need a new one.
Still, with record profits, $3.9 billion in cash, and the most diverse portfolio in its history, Garmin can afford to take its time.
The Fenix may be too durable for rapid growth, but it’s also proof of why people trust the brand in the first place.
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