Zebra Technologies Reports Strong Q4 Results, Shares Surge Over 15%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy ZBRA?
Source: seekingalpha
- Strong Performance: Zebra Technologies reported an adjusted earnings per share of $4.33 for Q4 2025, with revenue rising 10.6% year-over-year to $1.48 billion, exceeding analysts' expectations of $4.33 and $1.47 billion, indicating robust market performance.
- EBITDA Growth: Adjusted EBITDA increased by 10.5% year-over-year to $326 million, reflecting the company's success in cost control and operational efficiency, further solidifying its leadership in digitizing and automating workflows.
- Share Buyback Plan: Zebra's board authorized an additional $1 billion in share buybacks, following the previous $303 million spent, demonstrating confidence in future growth and aiming to enhance shareholder value.
- Optimistic Outlook: Zebra expects Q1 2026 sales growth between 11% and 15%, surpassing the analyst estimate of 10.22%, showcasing the company's focus on high-growth opportunities and strong market demand.
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Analyst Views on ZBRA
Wall Street analysts forecast ZBRA stock price to rise
7 Analyst Rating
4 Buy
3 Hold
0 Sell
Moderate Buy
Current: 274.150
Low
291.00
Averages
363.80
High
415.00
Current: 274.150
Low
291.00
Averages
363.80
High
415.00
About ZBRA
Zebra Technologies Corporation is engaged in the Automatic Identification and Data Capture (AIDC) industry. The Company helps organizations monitor, anticipate, and accelerate workflows by empowering their frontline and ensuring that everyone and everything is visible, connected and fully optimized. Its portfolio includes hardware, software, and services. It operates through two segments: Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM). The AIT segment is engaged in barcode printing and asset tracking technologies. Its product lines include barcode and card printers, radio frequency identification devices (RFID) and real-time location systems (RTLS) offerings, and supplies, including temperature-monitoring labels, and services. The EVM segment is engaged in automatic information and data capture solutions. Its product lines include mobile computing, data capture, fixed industrial scanning and machine vision, services, and workflow optimization solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Cisco Systems Warning: Cisco Systems saw its stock plummet over 12% after forecasting that rising memory chip prices would erode profitability, raising investor concerns about future performance and potentially diminishing market confidence.
- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
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- Earnings Highlights: Zebra's Q4 2025 sales increased by 10.6% year-over-year to $1.48 billion, with adjusted earnings rising from $4.00 to $4.33 per diluted share, matching analyst expectations and demonstrating robust growth in a competitive market.
- Outlook: Management anticipates revenues of approximately $1.48 billion and adjusted earnings of about $4.18 per share in the next quarter, significantly above current market projections, showcasing the company's confidence in future growth.
- Market Positioning: Despite rising hardware costs, Zebra maintains a leading position in high-growth sectors such as e-commerce and digitized healthcare records, with the CEO highlighting the company's industry leadership in AI solutions as a competitive advantage.
See More
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- Optimistic Outlook: Management anticipates revenues of approximately $1.48 billion and adjusted earnings of around $4.18 per share for the next quarter, both significantly above current Wall Street projections, reflecting strong confidence in future growth.
- AI Solutions Provider: While Zebra is not widely recognized in the AI space, its positioning as a supplier of AI solutions for frontline business operations aligns perfectly with the needs of high-growth markets such as manufacturing, e-commerce, healthcare, and fast food, highlighting its strategic significance.
- Attractive Valuation: Currently trading at 2.7 times sales and 28 times trailing earnings, Zebra's stock is considered relatively cheap when factoring in growth prospects, potentially attracting more investor interest.
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- Shift in Perception: The shift in perception highlights the evolving landscape of the freight industry as AI continues to advance and disrupt traditional roles.
- Impact on the Industry: This change suggests that freight brokers may need to adapt to remain competitive in an increasingly automated environment.
- Future Considerations: The situation raises questions about the long-term implications of AI on various sectors within the logistics and transportation industries.
See More
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- Strategic Focus: The company expanded its connected frontline portfolio and customer base through the acquisitions of Elo Touch and Photoneo, while exiting the Robotics business to concentrate on higher-growth areas such as RFID, machine vision, and AI solutions, thereby reinforcing its market leadership.
- Future Outlook: The CFO projected sales growth for 2026 to be between 9% and 13%, with first-quarter sales growth guidance ranging from 11% to 15%, including approximately 10 points from business acquisitions and favorable FX, indicating strong confidence in future growth.
- Cash Flow and Buybacks: Zebra generated $831 million in free cash flow for 2025 and plans to repurchase around 50% of its free cash flow in 2026, enhancing shareholder returns and demonstrating a proactive approach to capital management.
See More
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- Tech Stock Pressure: The S&P 500 index fell by 0.52% and the Nasdaq 100 index dropped by 1.08% due to weakness in the Magnificent Seven tech stocks, indicating investor concerns that could dampen market confidence.
- Cisco Profit Warning: Cisco Systems forecasted that rising memory chip prices would erode profitability, leading to a more than 10% drop in its stock price, which may prompt investors to revise down their future performance expectations, negatively impacting overall market sentiment.
- Employment Data Impact: Initial US jobless claims fell by 5,000 to 227,000, reflecting a slightly weaker labor market, which could influence the Federal Reserve's monetary policy decisions and lower market expectations for future rate cuts.
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