Zebra Technologies (ZBRA) investor relations material

Demand and growth outlook

• Raised 2024 organic growth guidance to 5% at midpoint, citing broad-based demand across regions and verticals, especially manufacturing strength in Q1.

• Memory supply is the main constraint for reaching the high end of guidance; actions are underway to increase supply in the second half of the year.

• Growth is consistent across North America, EMEA, Asia-Pacific, and Latin America, with retail and e-commerce also showing resilience.

• Long-term growth algorithm remains 5%-7%, with T&L refresh and AI-enabled products expected to drive acceleration from 2027 onward.

• Automation, AI, and RFID adoption are expanding addressable opportunities, especially in warehouse and supply chain applications.

Supply chain, tariffs, and inflation

• Memory supply is stable for now, with suppliers meeting commitments; price increases have been implemented to offset input cost inflation.

• Tariffs have shifted from a $20 million headwind in 2025 to a $20 million tailwind in 2024, aided by production moves and supply chain diversification.

• 80% of North America volume now comes from outside China, improving supply chain resiliency.

• Inflationary pressures, including oil and logistics, are being monitored and managed, with flexibility to adjust pricing as needed.

Technology and product innovation

• AI-enabled devices and machine vision are driving new customer value, especially in retail and last-mile delivery.

• AI is integrated into mobile computers, with tiered offerings from enablers to full agent solutions, supporting both monetization and customer stickiness.

• Picture proof of delivery using AI is a differentiator, saving customers significant costs and accelerating refresh cycles.

• RFID use cases are expanding, including fresh food tracking, enabled by integrated printing and reading solutions.