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Sep 27
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.
Zebra
Zebra
Zebra Revenue by Segment
Revenue by Segment
EVM Revenue
CapyFin.comAIT Revenue
CapyFin.com 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.
- Macroeconomic and FX volatility may impact performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income