GARMIN LTD Revenue Disclosure
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, Garmin disaggregates revenue (or “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), which also represent the Company’s operating segments.
A large majority of the Company’s revenue is recognized on a point in time basis, usually once the product is shipped and title and risk of loss have transferred to the customer. Revenue recognized over time is primarily within the outdoor, aviation, and auto OEM segments and relates to performance obligations that are satisfied over the estimated life of the product or contractual service period. Revenue disaggregated by pattern of recognition, based on the timing of transfer of the goods or services, is presented in the table below:
|
|
Fiscal Year Ended |
|
|||||||||
|
|
December 27, 2025 |
|
|
December 28, 2024 |
|
|
December 30, 2023 |
|
|||
Point in time |
|
$ |
6,910,894 |
|
|
$ |
5,968,124 |
|
|
$ |
4,938,479 |
|
Over time |
|
|
334,625 |
|
|
|
328,779 |
|
|
|
289,773 |
|
Net sales |
|
$ |
7,245,519 |
|
|
$ |
6,296,903 |
|
|
$ |
5,228,252 |
|
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 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 52-week periods ending December 27, 2025 and December 28, 2024 are presented below:
|
|
Fiscal Year Ended |
|
|||||||||||||
|
|
December 27, 2025 |
|
|
December 28, 2024 |
|
||||||||||
|
|
Deferred |
|
|
Deferred |
|
|
Deferred |
|
|
Deferred |
|
||||
Balance, beginning of period |
|
$ |
139,318 |
|
|
$ |
30,938 |
|
|
$ |
137,337 |
|
|
$ |
27,373 |
|
Deferrals in period |
|
|
323,230 |
|
|
|
61,957 |
|
|
|
330,760 |
|
|
|
65,111 |
|
Recognition of deferrals in period |
|
|
(334,625 |
) |
|
|
(70,984 |
) |
|
|
(328,779 |
) |
|
|
(61,546 |
) |
Balance, end of period |
|
$ |
127,923 |
|
|
$ |
21,911 |
|
|
$ |
139,318 |
|
|
$ |
30,938 |
|
(1) Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the consolidated balance sheets.
(2) Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the consolidated balance sheets.
Of the $334,625 of deferred revenue recognized in the 52-weeks ended December 27, 2025, approximately $93,000 was deferred as of the beginning of the period. Of the $328,779 of deferred revenue recognized in the
52-weeks ended December 28, 2024, $92,093 was deferred as of the beginning of the period. Of the $127,923 of deferred revenue as of December 27, 2025, the Company expects to recognize approximately 87% ratably over a total period of three years or less.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 20, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.