Zebra Technologies Corp - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.53%.
Did ZBRA Beat Earnings? Q3 2025 Results
Zebra Technologies posted a clean beat across both top and bottom lines in the third quarter of fiscal 2025, with non-GAAP diluted EPS of $3.88 clearing the $3.75 consensus estimate by 3.40% and revenue of $1.32 billion edging past expectations by 0.26% on 5.2% year-over-year growth. The standout driver was the Asset Intelligence and Tracking segment, which delivered 11.0% reported sales growth to $455.00 million, providing meaningful lift to overall results even as the larger Enterprise Visibility and Mobility segment contributed a steadier 2.4% gain to $865.00 million. Despite the revenue momentum, GAAP net income pulled back to $101.00 million from $137.00 million a year ago, weighed down by stock-based compensation that doubled to $48.00 million and a sharp rise in income tax expense. Looking ahead, management guided Q4 sales growth of 8% to 11% and non-GAAP EPS of $4.20 to $4.40, while committing to $500.00 million in share repurchases over the next twelve months, signaling confidence in the company's demand trajectory despite ongoing tariff headwinds of approximately $6.00 million.
- Solid demand across both segments
- Lower-than-expected tariff impact
- Operating expense leverage
- Strong AIT segment organic growth of 10.6%
- Adjusted EBITDA margin expansion to 21.6% from 21.4%
“Our strong third quarter results were driven by solid demand, lower-than-expected tariffs, operating expense leverage and continued excellent execution by our teams. We continue to advance our industry leadership with solutions that digitize and automate our customers' workflows, and are excited about the opportunity to accelerate our connected frontline vision through our recent acquisition of Elo Touch Solutions. We are also building on our track record of value creation for shareholders, committing to $500 million of share repurchases over the next twelve months, supported by our strong balance sheet and cash flow.”
Zebra Technologies CEO, on the earnings call
Forward Guidance & Outlook
Zebra expects Q4 2025 sales growth of 8–11% year-over-year, including approximately 850 basis points of favorable impact from acquisitions and foreign currency translation. Adjusted EBITDA margin is expected to be approximately 22%, which includes approximately $6 million of U.S. import tariff expense net of mitigating actions at current rates and exemptions. Non-GAAP diluted EPS is expected in the range of $4.20 to $4.40, assuming an adjusted effective tax rate of approximately 18%. Full-year 2025 free cash flow is expected to exceed $800 million. The company expects to repurchase $500 million of common stock beginning in Q4 2025 through the next 12 months.
ZBRA YoY Financials
ZBRA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.