Summary of Zebra Technologies FY Conference Call Company Overview - **Company**: Zebra Technologies (NasdaqGS: ZBRA) - **Event**: FY Conference Call on November 18, 2025 - **Key Speakers**: Nathan Winters (CFO), Mike Steele (VP of Finance and Investor Relations) Core Industry Insights - **Industry**: Technology and Automation Solutions for Frontline Operations - **Vision**: Transition from "Enterprise Asset Intelligence" to "Enabling Intelligent Operations" to reflect the company's evolution and current offerings [4][6] Key Points and Arguments 1. **Resegmentation of Business**: Zebra has resegmented its operations into two new segments: Connected Frontline and Asset Visibility and Automation, to better align with its current strategy and offerings [6][8] 2. **ELO Acquisition**: The $1.3 billion acquisition of ELO aims to enhance the frontline experience by integrating mobile computing with point-of-sale solutions, expected to generate $400 million in revenue and provide immediate accretive benefits [9][10] 3. **Demand Environment**: The company is experiencing uneven demand across regions, with strong performance in North America and Asia-Pacific, while Europe shows tepid demand, particularly in Germany and France [12][14] 4. **Customer Capital Planning**: Zebra maintains a two- to three-year roadmap with strategic customers, indicating a stable outlook for project deployments, although uncertainty remains regarding the timing of capital expenditures [15][16] 5. **Growth Projections**: The company anticipates a long-term compound annual growth rate (CAGR) of 5%-7%, driven by market leadership in mobile computing and expansion into new markets [25][26] 6. **RFID Technology**: Zebra sees RFID as a significant growth opportunity, with double-digit growth in recent years, emphasizing its role in inventory management and theft prevention [46][48] 7. **Machine Vision**: The integration of machine vision technologies is expected to enhance Zebra's competitive positioning, particularly in high-end inspection markets [52][53] 8. **Healthcare Market**: Adoption in healthcare is slower due to the nature of the industry, but Zebra remains optimistic about long-term growth opportunities, especially with the ELO acquisition [61][63] 9. **Omnichannel Retail**: The company has fully absorbed capacity constraints from previous years and is seeing a return to normal business levels, with ongoing discussions about technology refreshes and new applications [65][67] Additional Important Insights - **Tariff Mitigation**: Zebra has successfully reduced the expected gross profit headwinds from tariffs from $70 million to less than $25 million through proactive pricing and supply chain diversification [31][32] - **AI Integration**: The company is leveraging AI to enhance internal productivity and develop customer-facing applications, focusing on frontline worker solutions [35][39] - **Market Challenges**: Manufacturing remains subdued, with muted growth due to economic uncertainty, particularly in Europe and automotive sectors [57][59] This summary encapsulates the key insights and strategic directions discussed during the Zebra Technologies FY Conference Call, highlighting the company's focus on innovation, market adaptation, and long-term growth potential.

Group 1 - Zebra Technologies Corporation (NASDAQ: ZBRA) is a global leader in digitizing and automating workflows to deliver intelligent operations [6][7] - The company will present at two investor conferences: on Nov. 18 at the Stephens NASH25 Conference and on Dec. 1 at the UBS Global Technology and AI Conference [4][6] - Zebra Technologies provides a portfolio of connected frontline, asset visibility, and automation solutions powered by AI, serving various industries including retail, manufacturing, and healthcare [2][6] Group 2 - The company announced strong third-quarter results for 2025, driven by solid demand, lower-than-expected tariffs, and effective execution by its teams [6] - Zebra Technologies completed the acquisition of Elo Touch Solutions, enhancing its capabilities in customer engagement and automation across multiple sectors [7] - The company will release its third-quarter financial results on Oct. 28, 2025, followed by a conference call to discuss these results [8]

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 - 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 - Capgemini has completed the acquisition of WNS, creating a global leader in Agentic AI-powered Intelligent Operations [1][2] - The acquisition is valued at $3.3 billion, with a cash consideration of $76.50 per WNS share [2] - Capgemini aims to leverage WNS's industry expertise and platforms to enhance its capabilities in transforming business processes [2] Financial Details - The total cash consideration for the acquisition amounts to $3.3 billion, excluding WNS's net financial debt, which was negligible as of March 31, 2025 [2][4] - Capgemini successfully priced €4.0 billion in bonds to finance the acquisition and refinance its financial debt [2] Strategic Vision - Both companies share a vision of utilizing agentic AI to transform business operations, focusing on efficiency and agility through hyper-automation [2] - The integration is expected to unlock long-term value for clients, employees, partners, and communities [2] Company Background - Capgemini is a global business and technology transformation partner with 350,000 team members across more than 50 countries [3] - The company reported global revenues of €22.1 billion for the year 2024 [3]

Core Insights - Capgemini is set to acquire WNS for $76.50 per share, totaling $3.3 billion, which represents a premium of 28% over the last 90-day average share price [2][5] - The acquisition is expected to enhance Capgemini's normalized EPS by 4% in 2026 and 7% in 2027 post-synergies [2][20] - The transaction has been unanimously approved by the boards of both companies and is anticipated to close by the end of the year [5][22] Strategic Rationale - The acquisition aims to create a leader in Intelligent Operations, leveraging Agentic AI to transform business processes [3][12] - Capgemini will gain scale and vertical expertise to capitalize on the shift from traditional Business Process Services (BPS) to AI-powered operations [3][5] - WNS's high-growth Digital BPS will enhance Capgemini's service offerings and increase its presence in the US market [4][10] Financial Impact - The combined entities are projected to generate revenues of €1.9 billion in Digital BPS by 2024 [10] - WNS has shown a consistent revenue growth of approximately 9% over the last three fiscal years, reaching $1,266 million in fiscal year 2025 with an 18.7% operating margin [8][9] - Capgemini expects revenue synergies of €100 million to €140 million and cost synergies of €50 million to €70 million by the end of 2027 [20] Market Positioning - The acquisition positions Capgemini to meet the growing demand for AI-driven business process transformation, addressing client needs for efficiency and agility [3][12] - The combination of Capgemini and WNS will create a robust platform for innovation and growth, enhancing their competitive edge in the market [6][17] - Both companies share a vision for Intelligent Operations, which will facilitate a smooth integration and unlock new opportunities for clients [6][21]