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Sep 27, 2025
Zebra Q3 2025 Earnings Report
Zebra Technologies reported Q3 2025 results with increased revenue and strong non-GAAP earnings, despite a drop in net income and margin.
Key Takeaways
Zebra Technologies delivered solid top-line growth and improved non-GAAP performance in Q3 2025, aided by disciplined cost control and demand strength, though GAAP net income declined year over year.
Revenue rose to $1.32 billion, driven by growth in both EVM and AIT segments.
Non-GAAP EPS grew to $3.88, reflecting effective cost management and operating leverage.
GAAP Net Income fell to $101 million from $137 million a year ago.
The company repurchased $284 million in stock YTD and plans $500 million more over the next 12 months.
Revenue by Segment
Forward Guidance
Zebra expects Q4 2025 sales to grow 8–11% YoY, driven by acquisitions and favorable FX impact, with adjusted EBITDA margin projected at ~22% and non-GAAP EPS in the range of $4.20 to $4.40.
Positive Outlook
- Q4 sales expected to grow 8–11% YoY.
- Favorable impact from acquisitions and FX (~850 bps).
- Adjusted EBITDA margin forecasted at ~22%.
- Non-GAAP EPS guidance: $4.20–$4.40.
- Strong free cash flow projection of over $800 million for FY 2025.
Challenges Ahead
- Gross margin remains under pressure from $6 million in tariff costs.
- GAAP net income declined significantly in Q3.
- Operating expenses increased due to stock-based compensation.
- Free cash flow declined YoY from $666 million to $504 million YTD.
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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