Zebra Technologies Q3 Earnings & Revenues Top Estimates, 25' View Up

Core Insights - Zebra Technologies Corporation (ZBRA) reported third-quarter 2025 adjusted earnings of $3.88 per share, exceeding the Zacks Consensus Estimate of $3.75, marking an 11.2% increase from $3.49 per share in the same quarter last year [1][9] - Total revenues reached $1.32 billion, surpassing the consensus estimate of $1.31 billion, with a year-over-year growth of 5.2% driven by strong performance in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking segments [2][9] Financial Performance - Revenues from the Asset Intelligence & Tracking segment increased by 11% year over year to $455 million, exceeding the Zacks Consensus Estimate of $426 million, with organic net sales rising by 10.6% [3] - The Enterprise Visibility & Mobility segment reported revenues of $865 million, a 2.4% increase year over year, though it fell short of the consensus estimate of $887 million, with organic net sales growing by 2% [4] Margin and Expenses - Zebra Technologies' cost of sales for the third quarter was $686 million, up 6.9% year over year, while total operating expenses also increased by 6.9% to $451 million [5] - The company reported a net income of $101 million, down from $137 million in the same period last year [5] Balance Sheet and Cash Flow - At the end of the third quarter, Zebra Technologies had cash and cash equivalents of $1,053 million, an increase from $901 million at the end of December 2024, while long-term debt rose to $2.11 billion from $2.09 billion [6] - In the first nine months of 2025, the company generated net cash of $560 million from operating activities, down from $707 million in the previous year, with free cash flow amounting to $504 million compared to $666 million in the year-ago period [7] Guidance - For the fourth quarter of 2025, Zebra Technologies expects net sales to increase between 8-11% year over year, with adjusted EBITDA margin anticipated at approximately 22% and adjusted earnings per share projected in the range of $4.20-$4.40 [8] - For the full year 2025, the company has raised its adjusted earnings outlook to $15.80 per share from the previous range of $15.25-$15.75, with an expected net sales growth of 8% year over year [9][10]