Financial Data and Key Metrics Changes - In Q2, total company sales reached $1.3 billion, reflecting a greater than 6% increase year-over-year, with adjusted EBITDA margin at 20.6%, a 10 basis point improvement [9][11][13] - Non-GAAP diluted earnings per share were $3.61, representing a 14% increase compared to the prior year [9][13] - Year-to-date free cash flow generated was $288 million, with $250 million in stock repurchases [14] Business Line Data and Key Metrics Changes - Strong growth was observed in mobile computing, scanning, and RFID, particularly in North America, Latin America, and Asia Pacific [9][12] - North America sales grew by 8%, with double-digit growth in mobile computing and RFID; Asia Pacific sales increased by 20% [12] - EMEA experienced a sales decline of 1%, cycling strong comparisons, particularly in mobile computing [12] Market Data and Key Metrics Changes - North America, Latin America, and Asia Pacific regions showed strong sales growth, while EMEA faced challenges [12][70] - The company noted resilience in demand despite uncertainties in trade policy, with customers maintaining capital spending levels [10][34] Company Strategy and Development Direction - The acquisition of Elo Touch Solutions is aimed at enhancing the connected frontline experience and expanding the addressable market by approximately $8 billion [7][23] - The company is focused on digitizing and automating workflows, leveraging innovations in hardware, software, and services [20][25] - Strategic priorities include expanding into consumer-facing solutions and enhancing self-service capabilities [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand, noting that customers are navigating uncertain trade policies but have generally maintained spending [10][34] - The company raised its full-year sales growth guidance to between 5% and 7%, reflecting strong second-quarter results and a solid backlog [18][84] - Management highlighted the potential positive impact of recent U.S. tax legislation on capital spending [35][43] Other Important Information - The company is experiencing a gross profit impact of approximately $30 million from U.S. import tariffs for the full year, which is favorable compared to previous expectations [15][18] - The balance sheet remains strong, with $872 million in cash and a net debt to adjusted EBITDA leverage ratio of 1.2 [14] Q&A Session Questions and Answers Question: Can you explain how the Elo acquisition technology ties in with Zebra's? - The acquisition enhances Zebra's portfolio with self-service and customer-facing solutions, expanding the addressable market significantly [30][31] Question: How do you feel about customer budget releases for the second half? - Demand has remained resilient, and customers are generally maintaining their capital spending levels despite some caution [34][35] Question: Can you discuss Elo's business cyclicality compared to Zebra's? - Elo's business is more balanced throughout the year, unlike Zebra's which typically sees year-end spending [40][41] Question: What is the potential for market share gains given competitive dynamics? - The company feels confident about its competitive position and sees opportunities for market share gains through strong customer relationships and expanded offerings [64][66] Question: What changes have been observed in various market sectors? - Strong growth continues in North America, Asia Pacific, and Latin America, while EMEA has shown mixed performance with some softness [68][70]