Zebra Technologies Corp Earnings
In the third quarter of 2025, Zebra Technologies Corporation showcased a robust set of financial results, emphasizing impressive earnings growth despite facing economic challenges. The company, well-known for its technological innovations in digitizing and automating workflows, achieved a noteworthy increase in earnings, buoyed by strong market demand, strategic acquisitions, and efficient operational management.
Zebra Technologies Corp Results
The table below summarizes key financial metrics for Zebra Technologies Corp for the third quarter of 2025:
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Net Sales ($ million) | 1,320 | 1,255 | +5.2% |
| Net Income ($ million) | 101 | 137 | -26.3% |
| Earnings per Diluted Share ($) | 1.97 | 2.64 | -25.4% |
| Non-GAAP Diluted EPS ($) | 3.88 | 3.49 | +11.2% |
| Adjusted EBITDA ($ million) | 285 | 268 | +6.3% |
Despite a decrease in net income and diluted EPS year-over-year, Zebra Technologies demonstrated strong performance in non-GAAP diluted EPS and adjusted EBITDA, reflecting effective cost management and operational efficiency.
Revenue Breakdown
The breakdown of revenue performance across Zebra Technologies' major segments for the third quarter of 2025 is as follows:
| Segment | Q3 2025 Revenue ($ million) | Q3 2024 Revenue ($ million) | YoY Change |
|---|---|---|---|
| Enterprise Visibility & Mobility (EVM) | 865 | 845 | +2.4% |
| Asset Intelligence & Tracking (AIT) | 455 | 410 | +10.6% |
Segment Analysis
The Enterprise Visibility & Mobility (EVM) segment recorded modest growth, increasing by 2.4% year-over-year. This growth can be attributed to the company's efforts to leverage digital transformation trends in various industries. On the other hand, the Asset Intelligence & Tracking (AIT) segment experienced a substantial increase of 10.6%, driven by heightened demand for tracking and asset management solutions. This strong performance underscores Zebra's ability to address growing industry needs through innovation and technological advancement.
Key Developments
Significant developments during the quarter included Zebra's acquisition of Elo Touch Solutions, which aligns with their strategy to enhance connected operations and frontline solutions. This acquisition is expected to bolster Zebra's competitive edge by expanding its product and service offerings. Furthermore, the company's strategic focus on reducing tariffs and leveraging operating expense efficiency contributed to robust financial performance.
Comments from Company Officers
Bill Burns, Chief Executive Officer of Zebra Technologies, commented on the results by stating, "Our strong third quarter results were driven by solid demand, lower-than-expected tariffs, operating expense leverage, and continued excellent execution by our teams." He also emphasized the excitement surrounding the acquisition of Elo Touch Solutions and reiterated the company's commitment to creating shareholder value through strategic share repurchases and leveraging their strong balance sheet.
Dividends and Share Repurchases
Zebra Technologies continues to prioritize shareholder value, as evidenced by their share repurchase program. The company has repurchased $284 million of shares year-to-date and plans to repurchase an additional $500 million through the third quarter of 2026. This strategic move underscores the company's confidence in its financial strength and future growth prospects.
Zebra Technologies Corp Stock Forecast
Looking ahead, Zebra Technologies is projected to maintain its momentum into the future. With strong sales growth expected in the coming quarters, driven by acquisitions and favorable foreign exchange impacts, the company's financial outlook remains positive.
High Projection: Given the current strong performance and strategic acquisitions, Zebra's stock price is expected to reach new heights, possibly in the range of $570 to $600 over the next 12 months.
Low Projection: Considering potential market volatility and economic challenges, a more conservative projection could see the stock price stabilize at $540 to $560.
Overall, Zebra Technologies' strategic initiatives, strong market position, and innovative solutions are anticipated to drive sustainable growth, making it a compelling consideration for investors interested in technological advancements and modernization within diverse industries.
Through strategic acumen and operational excellence, Zebra Technologies remains poised to navigate market dynamics effectively, ensuring long-term value creation and operational success.
