Global Positioning System (GPS) technology company Garmin (GRMN -6.01%) reported strong second-quarter earnings today and raised full-year guidance. It posted double-digit revenue gains in all five of its business segments.

Yet Garmin shares plunged as much as 8% on the news. As of 11:37 a.m. ET, the stock rebounded a bit but was still lower by 5.5%. With the company's sound and growing underlying business, the stock drop today may be an opportunity for investors.

Image source: Garmin.

Garmin's fitness category wins the race

Garmin reported a remarkable 41% revenue jump in its fitness segment. Management noted "strong demand for advanced wearables" driving fitness product sales. That led to an overall 20% revenue increase, compared to the year-ago period. Growth in adventure watches led its outdoor segment, while aviation, marine, and automotive sales also grew nicely.

The results led Garmin to increase its 2025 outlook for both sales and earnings per share (EPS). The new sales guidance would represent a 13% surge in revenue in 2025 after reporting 20% annual growth last year. EPS guidance moved from $7.80 to $8 per share.

Solid balance sheet

Cash flow was strong enough for the company to maintain a pristine balance sheet, even while paying its quarterly dividend and buying back shares in the second quarter. Cash and marketable securities remained at about $3.9 billion as of the end of Q2, with no debt. That represents 9% of Garmin's market cap.

Even with all that positive news, shares dropped today, as some investors took advantage of a recent surge in Garmin stock. Shares have jumped by more than 30% since early April, including today's drop.

It's not surprising that some investors wanted to lock in those gains. However, the business is firing on all cylinders and the future looks bright. Long-term investors should consider taking advantage of today's pullback by adding Garmin to their portfolios.