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Mar 29, 2025
Zebra Q1 2025 Earnings Report
Zebra Technologies delivered strong Q1 2025 results, exceeding expectations.
Key Takeaways
Zebra Technologies posted higher-than-expected revenue and earnings, supported by strong demand trends and improved margins.
Net sales increased 11.3% year-over-year to $1.31 billion.
Net income rose to $136 million, up from $115 million the prior year.
Adjusted EBITDA improved to $292 million, with margin expansion.
Positive demand trends continued into Q2 2025, with full-year outlook maintained.
Revenue by Segment
Forward Guidance
Zebra Technologies expects continued sales growth in Q2 and FY25 despite headwinds from tariffs, maintaining its overall optimistic outlook.
Positive Outlook
- Second-quarter sales growth expected between 4% and 7%.
- Full-year sales growth forecast maintained at 3% to 7%.
- Strong free cash flow expected to exceed $700 million in 2025.
- Solid balance sheet with significant cash reserves.
- Positive demand trends continued into the second quarter.
Challenges Ahead
- Tariffs are expected to impact profitability by about $70 million annually.
- Adjusted EBITDA margin guidance slightly constrained by tariff costs.
- Currency headwinds could neutralize acquisition contributions.
- Increased stock-based compensation expense impacting operating costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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