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Jun 28, 2025
Zebra Q2 2025 Earnings Report
Zebra Technologies reported solid second-quarter 2025 results with revenue and earnings growth driven by strong segment performance and cost discipline.
Key Takeaways
Zebra exceeded expectations in Q2 2025 with $1.29B in revenue and strong performance in both EVM and AIT segments. Adjusted EBITDA and non-GAAP EPS increased year-over-year, reflecting operational efficiency despite tariff-related margin pressure.
Revenue rose to $1.293 billion, a 6.2% year-over-year increase.
Adjusted EBITDA increased to $267 million, representing a 20.6% margin.
Non-GAAP EPS grew to $3.61, up from $3.18 last year.
Strong performance in both EVM and AIT segments supported growth.
Revenue by Segment
Forward Guidance
Zebra expects modest Q3 sales growth and strong full-year performance, supported by operational execution, acquisitions, and innovation.
Positive Outlook
- Q3 sales expected to grow 2% to 6% YoY
- Photoneo acquisition to contribute ~30bps to Q3 revenue
- Q3 Adjusted EBITDA margin projected at ~21%
- Full-year sales growth guidance raised to 5%-7%
- Full-year free cash flow expected to exceed $800 million
Challenges Ahead
- Ongoing U.S. import tariff pressure (~$10M in Q3)
- Gross margin compression year-over-year
- Currency translation headwinds partially offsetting gains
- Higher operating expenses forecasted
- Acquisition of Elo not yet reflected in 2025 outlook
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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