Zebra Technologies (ZBRA) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales reached $1.32 billion, up 5.2% year-over-year, with organic growth of 4.8% and strong performance in Asia Pacific, Latin America, and North America.

• Adjusted EBITDA margin improved to 21.6%, and non-GAAP diluted EPS rose 11.2% to $3.88.

• Growth was driven by demand in retail, e-commerce, RFID, and printing, while healthcare and manufacturing remained soft.

• Net income was $101 million ($1.97 per diluted share), down from the prior year due to higher taxes and operating expenses.

• Acquisition of Elo Touch Solutions for $1.3 billion expands connected frontline offerings and addressable market.

Financial highlights

• Net sales grew 5.2% year-over-year to $1.32 billion, with organic growth of 4.8%.

• Adjusted gross margin declined to 48.0%–48.2%, mainly due to U.S. import tariffs.

• Adjusted EBITDA rose 6.3% to $285 million, with margin at 21.6%.

• Free cash flow for the first nine months was $504 million.

• Year-to-date, $284 million in share repurchases and acquisitions of Elo Touch Solutions and Photoneo completed.

Outlook and guidance

• Q4 2025 sales growth expected between 8% and 11%, with 8.5 points from acquisitions and FX.

• Q4 adjusted EBITDA margin projected at 22%, with non-GAAP EPS between $4.20 and $4.40.

• Full-year 2025 sales growth forecast at 8%, adjusted EBITDA margin at 21.5%, non-GAAP EPS at $15.80, and free cash flow above $800 million.

• $500 million in share repurchases planned through Q3 2026.

• Segment realignment to Connected Frontline and Asset Visibility & Automation effective Q4 2025.