Zebra Technologies Corporation Q4 2025 Earnings Call Summary

Core Insights - The company's Q4 performance was significantly driven by strong execution in the Asia Pacific and Latin America regions, alongside a return to growth in EMEA and key end markets such as healthcare and retail [1] Strategic Focus - Management is sharpening its strategic focus by exiting the robotics business to prioritize higher-growth opportunities in RFID, machine vision, and AI-powered solutions [1] - The acquisition of Elo Touch is being leveraged to enhance the 'modern store' offering, integrating self-service kiosks and digital media with frontline mobility [1] Operational Performance - Operational leverage was achieved by fully mitigating existing tariffs through supply chain moves, product portfolio rationalization, and price execution; however, the adjusted gross margin declined by 50 basis points due to lower services and software margins [1] AI Positioning - The company is positioning itself as a critical enabler of AI by providing the 'digital voice' for physical assets through its visibility and automation segments [1] Capital Allocation - Strategic capital allocation remains balanced between internal investments, accretive M&A like Fotoneo, and returning value via a new $1 billion share repurchase authorization [1]