Zebra Technologies Announces Third-Quarter 2025 Results

Zebra Technologies Corporation, a global leader in digitizing and automating workflows, has released its financial results for the third quarter of 2025. The company reported a solid performance driven by strong demand, lower-than-expected tariffs, and effective operational execution.

Financial Highlights

For the third quarter of 2025, Zebra Technologies reported net sales of $1,320 million, marking a year-over-year increase of 5.2%. The company's net income stood at $101 million, translating to a net income per diluted share of $1.97. Non-GAAP diluted EPS saw a year-over-year increase to $3.88. Adjusted EBITDA also rose to $285 million, reflecting a year-over-year growth.

Business and Operational Highlights

Net sales in the Enterprise Visibility & Mobility (EVM) segment were $865 million, while the Asset Intelligence & Tracking (AIT) segment reported net sales of $455 million. The consolidated organic net sales for the third quarter increased by 4.8% year-over-year, with the EVM segment growing by 2.0% and the AIT segment by 10.6%.

Gross profit for the quarter was $634 million, although the gross margin slightly decreased to 48.0% due to U.S. import tariff expenses. Operating expenses increased primarily due to higher stock-based compensation expenses.

Strategic Initiatives and Corporate Developments

Zebra Technologies has committed to repurchasing $500 million of its common stock over the next twelve months, supported by a strong balance sheet and cash flow. The company also completed the acquisition of Elo Touch Solutions, which is expected to accelerate its connected frontline vision.

Management's Perspective

Bill Burns, CEO of Zebra Technologies, attributed the strong third-quarter results to solid demand, lower tariffs, and excellent execution by the teams. He emphasized the company's commitment to advancing industry leadership through innovative solutions and shareholder value creation.

Future Outlook

Looking ahead, Zebra Technologies expects fourth-quarter sales growth between 8% and 11% compared to the prior year, with an adjusted EBITDA margin of approximately 22%. Non-GAAP diluted earnings per share are projected to be in the range of $4.20 to $4.40. The company also anticipates free cash flow for the full year 2025 to exceed $800 million.

Original SEC Filing: ZEBRA TECHNOLOGIES CORP [ ZBRA ] - 8-K - Oct. 28, 2025