Financial Data and Key Metrics Changes - Zebra Technologies reported Q3 2025 sales of $1.3 billion, a 5% increase year-on-year, with an adjusted EBITDA margin of 21.6%, reflecting a 20 basis point improvement, and non-GAAP diluted earnings per share of $3.88, which is 11% higher than the previous year [5][6][11] - Adjusted gross margin declined by 90 basis points to 48.2%, primarily due to higher U.S. import tariffs [9] Business Line Data and Key Metrics Changes - The Enterprise Visibility and Mobility segment grew by 2%, driven by mobile computing, while the Asset Intelligence and Tracking segment saw an 11% increase, led by RFID and printing [7] - RFID has been a consistent growth area, achieving double-digit growth over the past several years [12][15] Market Data and Key Metrics Changes - North America sales grew by 6%, with double-digit growth in mobile computing and RFID, although there was weakness in Canada [8] - Asia Pacific sales increased by 23%, led by Australia, New Zealand, and India, while Latin America saw an 8% increase [9] - EMEA sales declined by 3%, with mixed performance across the region [9] Company Strategy and Development Direction - Zebra Technologies is focused on digitizing and automating workflows, with a strong emphasis on AI and mobile computing solutions [12][19] - The recent acquisition of Elo Touch Solutions is expected to enhance capabilities in self-service and point of sale, increasing the addressable market [18] - The company plans to commit $500 million to share repurchases over the next 12 months to drive long-term shareholder value [6] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are navigating an uncertain macro environment, leading to uneven demand across geographies and vertical markets [6][36] - The company anticipates sales growth of 8% to 11% in Q4, with adjusted EBITDA margin expected to be around 22% [11] - Management expressed confidence in sustainable long-term growth driven by trends such as labor constraints and advancements in AI [19] Other Important Information - Zebra Technologies has successfully mitigated the impact of tariffs, expecting a $24 million gross profit impact for the full year 2025, with improvements in Q4 [10] - The company is transitioning to report under two new segments: Connected Frontline and Asset Visibility and Automation [7] Q&A Session Summary Question: Demand trends and Q4 guidance - Management indicated that Q3 demand was strong, but Q4 guidance implies a deceleration in organic growth due to tough comparisons and timing of orders [24][25] Question: EVM segment growth - The EVM segment saw strong growth in mobile computing but faced challenges in data capture due to difficult comparisons [26] Question: 2026 outlook and demand characterization - Management noted cautious customer sentiment and uneven demand across verticals, but expressed confidence in long-term growth opportunities [35] Question: AI features and growth catalysts - AI features are expected to drive hardware upgrades and software opportunities, with first revenues anticipated in 2026 [41] Question: Large project funnel and customer conversations - Demand trajectory remains consistent, with customers maintaining capital spending but cautious about accelerating future projects [43] Question: Elo Touch Solutions contribution - Elo is expected to contribute approximately $100 million in Q4, aligning with previous guidance [52][68] Question: Pricing actions related to tariffs - Pricing actions have not significantly impacted demand, with an expected annual benefit of around $60 million from these actions [71] Question: OBBBA tax impact - The new tax bill is expected to reduce cash taxes by $50 million to $60 million this year, with a modest impact on the overall tax rate [72][74]

Zebra Technologies (ZBRA) came out with quarterly earnings of $3.88 per share, beating the Zacks Consensus Estimate of $3.75 per share. This compares to earnings of $3.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.47%. A quarter ago, it was expected that this producer of printers for bar codes, plastic cards and, radio-frequency identification tags would post earnings of $3.31 per share when it actually produced earnin ...

Financial Performance - Zebra Technologies reported net sales of $1,320 million, a 5.2% increase compared to $1,255 million in 3Q24 [14] - Organic net sales growth was 4.8% [10, 14] - Adjusted EBITDA margin increased by 20bps to 21.6% [10, 14] - Non-GAAP diluted EPS increased by 11.2% to $3.88 [10, 14] Segment and Regional Performance - Asset Intelligence & Tracking segment organic net sales grew by 10.6% [15] - Enterprise Visibility & Mobility segment organic net sales grew by 2.0% [15] - Asia Pacific region organic net sales grew by 23% [15] - Latin America region organic net sales grew by 8% [15] - North America region organic net sales grew by 6% [15] - EMEA region organic net sales declined by 3% [15] Cash Flow and Balance Sheet - Free cash flow was $504 million year-to-date [17] - The company closed the Elo Touch Solutions acquisition for $1.3 billion [17] - The company has $1,053 million in cash and cash equivalents [17] - The company expects to substantially mitigate U S import tariffs entering 2026 [18]

Financial Performance - Net sales for Q3 2025 were $1,320 million, a year-over-year increase of 5.2% from $1,255 million in Q3 2024[4] - Net income for Q3 2025 was $101 million, down 26.3% from $137 million in Q3 2024, resulting in a net income per diluted share of $1.97[7] - Adjusted EBITDA for Q3 2025 increased to $285 million, representing a 6.3% year-over-year growth from $268 million in Q3 2024[8] - Total net sales for the three months ended September 27, 2025, reached $1,320 million, a 5.2% increase compared to $1,255 million for the same period in 2024[27] - Operating income for the three months ended September 27, 2025, was $183 million, compared to $191 million for the same period in 2024, indicating a slight decrease[27] - Net income for the nine months ended September 27, 2025, was $349 million, down from $365 million in the same period of 2024[29] - Reported net sales for the three months ended September 27, 2025, were $1,320 million, an increase from $1,255 million for the same period in 2024, representing a growth of 5.2%[34] - Non-GAAP net income for the three months ended September 27, 2025, was $198 million, up from $181 million in the same period of 2024, indicating a growth of 9.4%[37] Segment Performance - The Enterprise Visibility & Mobility segment reported net sales of $865 million, while the Asset Intelligence & Tracking segment reported $455 million, reflecting increases of 2.0% and 10.6% respectively[5] - Consolidated organic net sales growth for the three months ended September 27, 2025, was 4.8% after adjustments for foreign currency translations and acquisitions[31] - Gross profit for the nine months ended September 27, 2025, was $1,895 million, up from $1,765 million in the same period of 2024, reflecting a strong performance[27] - Adjusted gross profit for the nine months ended September 27, 2025, was $1,904 million, compared to $1,772 million for the same period in 2024, reflecting an increase of 7.4%[34] Cash Flow and Debt - Free cash flow for the full year 2025 is expected to exceed $800 million, with an additional $500 million in share repurchases planned over the next 12 months[13] - The company had cash and cash equivalents of $1,053 million and total debt of $2,183 million as of September 27, 2025[10] - Cash and cash equivalents at the end of the period were $1,053 million, an increase from $901 million at the beginning of the period[29] - Free cash flow for the nine months ended September 27, 2025, was $504 million, down from $666 million for the same period in 2024, a decrease of 24.3%[42] Expenses and Margins - Adjusted gross margin for Q3 2025 was 48.2%, down from 49.1% in Q3 2024, primarily due to U.S. import tariff expenses[5] - Operating expenses increased to $451 million in Q3 2025, up from $422 million in the prior year, mainly due to higher stock-based compensation[6] - Research and development expenses for the three months ended September 27, 2025, were $146 million, up from $141 million in the same period of 2024, reflecting continued investment in innovation[27] - Adjusted gross margin for the three months ended September 27, 2025, was 50.8%, compared to 49.1% for the same period in 2024, indicating an improvement[34] - Basic earnings per share (GAAP) for the three months ended September 27, 2025, were $1.98, down from $2.65 in the same period of 2024, a decrease of 25.3%[37] Future Outlook - The company expects Q4 2025 sales growth between 8% and 11%, including approximately 850 basis points of favorable impact from acquisitions and foreign currency translation[11] - Non-GAAP diluted earnings per share for Q4 2025 are projected to be in the range of $4.20 to $4.40, assuming an adjusted effective tax rate of approximately 18%[12] - The company plans to change its reportable segments to Connected Frontline (CF) and Asset Visibility & Automation (AVA) starting in the fourth quarter, aligning with its operational strategy[44] - Future outlook includes continued investment in new segments such as Connected Frontline and Asset Visibility & Automation[47] Acquisitions - The company acquired businesses for $62 million during the nine months ended September 27, 2025, indicating ongoing market expansion efforts[29]

Shares of Zebra Technologies (NASDAQ:ZBRA) fell about 3% premarket on Tuesday after the company's mixed third quarter results. Revenue for the third quarter ended Sept. 27, rose 5.2% year-over-year to $1.32B, which came in line with analysts' expectations. Meanwhile, non-GAAP EPS jumped 11% year-over-year to $3.88, ...

Core Insights - Zebra Technologies has forecasted fourth-quarter profit and revenue growth that exceeds analysts' expectations, indicating robust demand for its barcode scanners and mobile computers as businesses enhance their digital operations [1] Company Summary - The company is experiencing steady demand for its products, particularly barcode scanners and mobile computers, which are essential for businesses aiming to digitize their operations [1] Industry Summary - The forecasted growth reflects a broader trend in the industry where companies are increasingly investing in digital solutions to improve operational efficiency [1]

Core Insights - Zebra Technologies (ZBRA) exceeded Wall Street expectations for Q3 earnings and provided an optimistic outlook for the current quarter [1][2][3] Financial Performance - In the September quarter, Zebra reported adjusted earnings of $3.88 per share on sales of $1.32 billion, surpassing analyst expectations of $3.75 per share on $1.31 billion in sales [2] - Year-over-year, Zebra's earnings increased from $3.49 per share on sales of $1.26 billion in the same quarter last year [2] - For the current quarter, Zebra anticipates adjusted earnings of $4.30 per share on sales of $1.46 billion, compared to Wall Street's forecast of $4.26 per share on $1.42 billion in sales [3] Stock Performance - Following the earnings report, ZBRA stock rose by 1.4% to $315 in premarket trading [3] - The stock has been consolidating for 13 weeks at a buy point of $352.66 according to IBD MarketSurge charts [3] Business Overview - Zebra Technologies specializes in hardware and software solutions aimed at digitizing and automating frontline workflows across various sectors, including retail, healthcare, manufacturing, and transportation [4]

Financial Performance - Zebra Technologies reported net sales of $1,320 million for the third quarter of 2025, representing a year-over-year increase of 5.2% from $1,255 million in the same quarter of 2024 [3][4] - Gross profit for the third quarter was $634 million, up from $613 million, but gross margin decreased to 48.0% from 48.8% due to approximately $6 million in U.S. import tariff expenses [5][3] - Net income for the third quarter was $101 million, or $1.97 per diluted share, down from $137 million, or $2.64 per diluted share, in the prior year [7][4] Segment Performance - In the Enterprise Visibility & Mobility (EVM) segment, net sales were $865 million, an increase from $845 million year-over-year [3] - The Asset Intelligence & Tracking (AIT) segment saw net sales rise to $455 million from $410 million in the previous year, marking a 10.6% increase [3] Non-GAAP Measures - Non-GAAP net income increased to $198 million for the third quarter of 2025, or $3.88 per diluted share, compared to $181 million, or $3.49 per diluted share, in the prior year [7][4] - Adjusted EBITDA for the third quarter was $285 million, representing a 6.3% increase from $268 million in the prior year, with an adjusted EBITDA margin of 21.6% [8][4] Shareholder Returns - The company has committed to $500 million in share repurchases over the next twelve months, building on $284 million of share repurchases year-to-date [4][2] Outlook - For the fourth quarter of 2025, Zebra expects sales growth between 8% and 11% compared to the prior year, including a favorable impact from acquisitions and foreign currency translation [11][12] - Non-GAAP diluted earnings per share for the fourth quarter are anticipated to be in the range of $4.20 to $4.40 [12]

Core Insights - Zebra Technologies Corporation (ZBRA) is expected to release its third-quarter 2025 results on October 29, with revenue estimates at $1.31 billion, reflecting a 4.4% growth year-over-year, and adjusted earnings estimated at $3.75 per share, indicating a 7.5% increase from the previous year [1][9] Revenue Performance - The Enterprise Visibility & Mobility segment is projected to generate revenues of $887 million, representing a 5% increase from the same quarter last year, driven by strong demand for mobile computing products and data capture solutions [3] - The Asset Intelligence and Tracking segment is expected to report revenues of $426 million, indicating a 3.9% growth year-over-year, supported by solid demand for printing solutions and RFID products [4] Strategic Developments - Zebra Technologies is focusing on acquisitions to enhance its product offerings and customer base, exemplified by the acquisition of Photoneo in March 2025, which strengthens its portfolio in 3D machine vision solutions [5] Cost and Operational Challenges - The company's performance may be adversely affected by high costs and expenses, particularly due to increased raw material costs and foreign exchange headwinds from a stronger U.S. dollar, which could impact its overseas business [6][9] Earnings Prediction - The Earnings ESP for Zebra Technologies stands at 0.00%, indicating no clear prediction for an earnings beat, with both the Zacks Consensus Estimate and the Most Accurate Estimate at $3.75 [7][8]

Core Insights - Zebra Technologies Corporation (NASDAQ:ZBRA) is identified as an overlooked AI stock with a price target increase from $319 to $350, indicating a potential upside of approximately 14% [1] - The third quarter results are described as a "mixed bag," with margin risks anticipated in the Machinery business due to tariff headwinds, although these pressures may be limited to 2025 [2] - Multi-Industry earnings are expected to align broadly with conservative growth assumptions, and the Engineering and Construction group is projected to perform well due to a solid backlog [3] Company Overview - Zebra Technologies Corporation, based in Lincolnshire, Illinois, specializes in enterprise asset intelligence solutions, operating primarily in two segments: Asset Intelligence and Tracking, and Enterprise Visibility and Mobility [4]