Financial Data and Key Metrics Changes - For Q3 2025, Zebra Technologies reported 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 [4][6][10] - The company anticipates Q4 sales growth between 8% and 11%, with adjusted EBITDA margin expected to be approximately 22% and non-GAAP diluted earnings per share projected in the range of $4.20-$4.40 [10][19] Business Line Data and Key Metrics Changes - The enterprise visibility and mobility segment grew 2%, primarily driven by mobile computing, while the asset intelligence and tracking segment grew 11%, led by RFID and printing [7][8] - The software and recurring revenue business saw modest growth during the quarter [7] Market Data and Key Metrics Changes - North America sales increased by 6%, with double-digit growth in mobile computing and RFID, although there was weakness in Canada [8] - Asia Pacific sales surged by 23%, driven by strong performance in Australia, New Zealand, and India [8] - Latin America experienced an 8% sales increase, while EMEA sales declined by 3%, with mixed performance across the region [8] Company Strategy and Development Direction - Zebra Technologies is focused on digitizing and automating workflows, leveraging its portfolio of innovative solutions, including hardware, software, and services [11][12] - The company is excited about growth opportunities from its recent acquisition of Elo Touch Solutions, which enhances its capabilities in self-service and point-of-sale solutions [17][19] - The company plans to report under two new segments: connected frontline and asset visibility and automation, aligning with its strategic priorities [7][12] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is solid growth across most business areas, customers are navigating an uncertain macro environment, leading to uneven demand across geographies and vertical markets [6][34] - The company remains optimistic about long-term growth opportunities, particularly in AI and automation, which are expected to drive demand for its solutions [19][34] Other Important Information - Zebra Technologies has committed $500 million to share repurchases over the next 12 months, reflecting confidence in long-term shareholder value [6][8] - The company has successfully navigated supply chain challenges, including tariffs, and expects to mitigate the impact of U.S. import tariffs entering 2026 [9][10] Q&A Session Summary Question: Demand trends and Q4 guidance - Management indicated that Q3 demand was strong, with solid growth across regions, but noted that Q4 guidance implies a deceleration in organic growth due to tough comparisons [24][25] Question: EVM segment growth - Management highlighted strong growth in mobile computing but noted a decline in data capture, impacting overall EVM performance [27][28] Question: 2026 outlook and demand across verticals - Management acknowledged cautious customer sentiment and uneven demand across different environments, but expressed confidence in sustainable growth driven by AI opportunities [34][35] Question: Large project funnel and customer conversations - Management reported consistent demand trajectory and ongoing capital spending from customers, despite some caution due to macro uncertainties [41][43] Question: RFID growth and future visibility - Management confirmed strong double-digit growth in RFID and ongoing opportunities across various verticals, including retail and logistics [55][56] Question: AI opportunities and hardware refresh cycles - Management discussed the potential for higher-end devices and the importance of AI in driving future growth, with expected revenues from AI solutions starting in 2026 [60][62] Question: Elo acquisition impact - Management confirmed that Elo is expected to contribute $100 million in Q4, aligning with previous growth expectations, and highlighted ongoing operational synergies [72][73] Question: Pricing actions related to tariffs - Management noted that pricing actions have not significantly impacted demand and are in line with industry trends [76] Question: OBBBA tax impact - Management expects a reduction in cash taxes due to the new tax bill, with an anticipated cash benefit of over $200 million in the next two years [78]

Core Viewpoint - Zebra Technologies Corporation (ZBRA) is expected to report second-quarter 2025 results on August 5, with projected revenues of $1.28 billion, reflecting a 5% year-over-year growth, and adjusted earnings of $3.31 per share, indicating a 4.1% increase from the previous year [1][9]. Revenue Estimates - The Zacks Consensus Estimate for revenues is $1.28 billion, which indicates a growth of 5% from the year-ago quarter's figure [1]. - The Enterprise Visibility & Mobility segment is expected to generate revenues of $853 million, reflecting a 4% increase from the previous year [3]. - The Asset Intelligence and Tracking segment's revenues are projected to be $430 million, indicating an 8.3% growth from the year-ago number [4]. Earnings Performance - The consensus estimate for adjusted earnings has remained stable over the past 60 days, with an impressive earnings surprise history, outperforming the consensus estimate in each of the last four quarters, averaging an 8.4% surprise [2]. - In the last reported quarter, Zebra Technologies delivered an earnings surprise of 11.7% [2]. Segment Performance Drivers - The Enterprise Visibility & Mobility segment's performance is driven by strong demand for mobile computing products and data capture solutions, along with increased sales of services and software due to retail software wins [3]. - The Asset Intelligence and Tracking segment is expected to benefit from solid demand for printing solutions and RFID products [4]. Strategic Acquisitions - Zebra Technologies is focused on acquisitions to expand its product offerings and customer base, such as the acquisition of Photoneo in March 2025, enhancing its portfolio in 3D machine vision solutions [5]. Cost and Currency Challenges - The company's performance has been negatively impacted by high costs and expenses, with increased raw material costs expected to affect the bottom line [6]. - A stronger U.S. dollar is likely to have hurt Zebra Technologies' overseas business due to its extensive geographic presence [6]. Earnings Prediction Model - The current model does not predict an earnings beat for ZBRA, as the Earnings ESP is 0.00%, with both the Zacks Consensus Estimate and the Most Accurate Estimate at $3.31 [7][8]. Zacks Rank - Zebra Technologies currently holds a Zacks Rank of 3, indicating a hold position [10].