Garmin vs Xiaomi: Revenue, Profit and Business Model
Garmin had $7.2B of annual revenue in FY2025 and $1.7B of net income. Xiaomi had ~$63.6B of annual revenue in FY2025 and ~$5.8B of net income.
Latest financial snapshot
Financial summary
Garmin
Garmin has no long-term debt, and its revenue grew from $4.98 billion in 2021 to $7.25 billion in 2025. In fiscal 2025 gross margin was 58.7%, operating margin 25.9%, and GAAP EPS $8.59. In February 2026 the board proposed a 17% dividend increase and a new $500 million share buyback. Q2 2026 set records, with gross margin at 62.4%, operating margin at 30.4%, and pro forma EPS up 29% to $2.81. Management then raised its full-year 2026 outlook, which had started at about 9% revenue growth. Garmin Ltd. is a dominant multinational technology company specializing in GPS technology, sustaining a robust market valuation generally exceeding $30 billion.
Xiaomi
FY2025 was Xiaomi's strongest year: revenue rose 25.0% to ~$63.6B (RMB457.3B), profit attributable to owners was ~$5.78B (RMB41.6B), and adjusted net profit rose 43.8% to ~$5.45B (RMB39.2B). The Smart EV, AI and other new initiatives segment more than tripled to ~$14.7B (RMB106.1B) on 411,082 vehicle deliveries and posted its first full-year operating profit. 2026 has been weaker. Q1 revenue was ~$13.8B (RMB99.1B) (down 10.9%) with adjusted net profit of ~$848M (RMB6.1B) (down 43.1%). Q2 revenue was ~$15.1B (RMB108.9B) (down 6.1%) with adjusted net profit of ~$862M (RMB6.2B) (down 42.6%) and a 19.8% gross margin. In Q2 the EV segment had ~$3.46B (RMB24.9B) of revenue and an operating loss of about $361M (RMB2.6B). Xiaomi Corporation is an absolute colossal Chinese designer and manufacturer of consumer electronics, smartphones, and electric vehicles, sustaining a massive market valuation typically exceeding $40 billion.
Revenue and profit by year
Garmin
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $7.2B | $1.7B | 23.0% | +15.1% | Source |
| FY2024 | $6.3B | $1.4B | 22.4% | +20.4% | Source |
| FY2023 | $5.2B | $1.3B | 24.7% | +7.6% | Source |
| FY2022 | $4.9B | $973.6M | 20.0% | -2.5% | Source |
| FY2021 | $5B | $1.1B | 21.7% | +19.0% | Source |
| FY2020 | $4.2B | $992.3M | 23.7% | +11.4% | Source |
| FY2019 | $3.8B | $952.5M | 25.3% | +12.2% | Source |
| FY2018 | $3.3B | $694.1M | 20.7% | +7.2% | Source |
| FY2017 | $3.1B | $709M | 22.7% | +3.4% | Source |
| FY2016 | $3B | $517.7M | 17.2% | — | Source |
Where the revenue comes from
Garmin
- Fitness
~33% (FY2025: $2.36B)
Running watches, cycling computers, smart trainers, health wearables and the Garmin Connect ecosystem. Revenue was up 33% in 2025.
- Outdoor
~28% (FY2025: $2.05B)
Adventure watches, handheld GPS units and inReach satellite communicators and plans.
- Marine
~16% (FY2025: $1.18B)
Chartplotters, sonar, cartography and marine audio. Revenue was up 10% in 2025.
- Aviation
~14% (FY2025: $987M)
Certified OEM and aftermarket avionics plus aviation databases and services. Revenue was up 13% in 2025.
- Auto OEM
~9% (FY2025: ~$0.67B, derived)
Domain controllers and infotainment for automakers. The segment posted a $49M operating loss in 2025.
Xiaomi
- Smartphones
40.8% (FY2025)
~$25.9B (RMB186.4B) from Xiaomi, Redmi and POCO phones.
- IoT, Lifestyle Products and Internet Services
36.0% (FY2025)
Remainder of the Smartphone x AIoT segment, including appliances, TVs, wearables, advertising and games.
- Smart EV, AI and Other New Initiatives
23.2% (FY2025)
~$14.7B (RMB106.1B), mostly from SU7 and YU7 vehicle sales.
Business model and strategy
Garmin
How it makes money
Garmin designs, makes and sells hardware through five reporting segments, and most of its production happens in its own factories. In fiscal 2025 Fitness (running watches, cycling computers, smart trainers, health wearables) brought in $2.36 billion. Outdoor (fēnix and Instinct adventure watches, handhelds, inReach satellite communicators) brought in $2.05 billion.
Growth strategy
Garmin grows by adding sport- and activity-specific products, moving premium features such as AMOLED displays, ECG and satellite messaging into more price tiers, and building recurring software revenue through Garmin Connect+ and, since 2026, TrainingPeaks and TrainHeroic. In aviation and marine it pursues OEM wins with aircraft and boat builders.
Competitive advantage
Garmin's edge is long battery life, accurate multi-band GPS and sport-specific software in rugged devices, and it owns most of the chain that makes them.
Xiaomi
How it makes money
Xiaomi sells hardware at relatively thin margins and earns higher margins from internet services delivered through its installed base of devices, including advertising, app distribution and games. Smartphones were the largest single product line in FY2025 at ~$25.9B (RMB186.4B) of revenue. IoT products extend the ecosystem into homes, and many of them are made by ecosystem partner companies Xiaomi has invested in.
Growth strategy
Xiaomi's stated strategy is the Human x Car x Home ecosystem: sell more premium smartphones, add large appliances and other IoT categories, scale the car lineup, and invest in its own AI models and chips, such as the MiMo models and the XRING O1 processor.
Competitive advantage
Xiaomi's advantages are scale in smartphones (top three globally by shipments), a very wide range of connected products under one brand and one operating system, a large device base it can monetize through services, and a fast-growing car business that buyers can connect to the same ecosystem.
Questions about Garmin vs Xiaomi
Which company has higher revenue — Garmin Ltd. or Xiaomi Corp.?
Garmin Ltd. had $7.2B (FY2025), while Xiaomi Corp. had ~$63.6B (FY2025). By latest annual revenue, Xiaomi Corp. is the larger business, with Garmin Ltd. showing a smaller revenue base.
What is the market cap of Garmin Ltd. vs Xiaomi Corp.?
Garmin Ltd.'s market capitalisation stands at $54.0B, while Xiaomi Corp.'s is $83.0B. Xiaomi Corp. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Garmin Ltd..
How does revenue per employee compare for Garmin Ltd. and Xiaomi Corp.?
Garmin Ltd. has $315k / employee in revenue per employee, while Xiaomi Corp. has $1.12M / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Garmin Ltd. and Xiaomi Corp. make money?
Garmin Ltd. and Xiaomi Corp. generate revenue in fundamentally different ways. Garmin Ltd.: Garmin designs, makes and sells hardware through five reporting segments, and most of its production happens in its own factories. Xiaomi Corp.: Xiaomi sells hardware at relatively thin margins and earns higher margins from internet services delivered through its installed base of devices, including advertising, app distribution and games.
Which company is valued higher relative to revenue — Garmin Ltd. or Xiaomi Corp.?
On a price-to-sales (P/S) basis, Garmin Ltd. trades at 7.5x P/S and Xiaomi Corp. at 1.3x P/S. Garmin Ltd. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Xiaomi Corp.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Garmin Ltd. bigger than Xiaomi Corp.?
By last reported revenue, Xiaomi Corp. (~$63.6B (FY2025)) is the larger company compared to Garmin Ltd. ($7.2B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Garmin vs Xiaomi overview