Core Viewpoint - Zebra Technologies Corporation is set to report its Q4 2025 earnings, with analysts projecting a slight decline in earnings per share (EPS) compared to the previous year, amidst a backdrop of stock underperformance relative to major indices [1][2][4]. Financial Performance - The company is expected to generate a profit of $3.52 per share on a diluted basis for Q4 2025, which represents a 2.8% decrease from $3.62 per share in the same quarter last year [2]. - For the current fiscal year, analysts project an EPS of $12.81, reflecting an 8.2% increase from $11.84 in fiscal 2024, with further growth anticipated to $14.33 in fiscal 2026, marking an approximate 11.9% year-over-year increase [3]. Stock Performance - Zebra Technologies' shares have declined by 35.3% over the past 52 weeks, significantly underperforming the S&P 500 Index, which rose by 16.7%, and the State Street Technology Select Sector SPDR ETF, which returned 25.2% during the same period [4]. - On October 28, 2025, despite reporting better-than-expected Q3 2025 earnings, the stock dropped by 11.7% due to a less favorable Q4 sales outlook, even though organic sales increased by 5.2% year-over-year to $1.3 billion and adjusted EPS for the quarter was $3.88 [5]. Analyst Ratings - Analysts maintain a "Moderate Buy" rating for Zebra Technologies, with 10 out of 17 analysts recommending a "Strong Buy," one a "Moderate Buy," and six suggesting a "Hold" [6]. - The average analyst price target for the stock is $358.21, indicating a potential upside of 38.4% from current levels [6].

Core Insights - Zebra Technologies Corporation has significantly underperformed the broader market, with a stock decline of 40.6% over the past 52 weeks and 40.9% year-to-date, contrasting with the S&P 500 Index's gains of 10.5% and 11.2% respectively [2][3] Financial Performance - Zebra Technologies reported a 5.2% year-over-year growth in net sales for Q3, reaching $1.3 billion, which exceeded market expectations by 71 basis points [4] - The adjusted EPS for the quarter increased by 11.2% year-over-year to $3.88, surpassing consensus estimates by 3.5% [4] - For the full fiscal year 2025, analysts project an adjusted EPS of $15.83, reflecting a 17.1% year-over-year increase [6] Market Outlook - The company's Q4 sales outlook is projected to grow by 8% to 11% year-over-year, which includes an 8.5% favorable impact from acquisitions and foreign currency translation [5] - Despite the positive financial results, Zebra's stock price dropped by 11.7% following the Q3 results announcement, indicating a dampened investor confidence [4] Analyst Sentiment - Among the 17 analysts covering Zebra Technologies, the consensus rating is a "Moderate Buy," consisting of 10 "Strong Buys," one "Moderate Buy," five "Holds," and one "Strong Sell" [6] - The current analyst sentiment is slightly less optimistic compared to the previous month, where no analysts issued "Strong Sell" recommendations [7]

Core Insights - Zebra Technologies Corporation (NASDAQ:ZBRA) is identified as an overlooked AI stock with a price target increase from $319 to $350, indicating a potential upside of approximately 14% [1] - The third quarter results are described as a "mixed bag," with margin risks anticipated in the Machinery business due to tariff headwinds, although these pressures may be limited to 2025 [2] - Multi-Industry earnings are expected to align broadly with conservative growth assumptions, and the Engineering and Construction group is projected to perform well due to a solid backlog [3] Company Overview - Zebra Technologies Corporation, based in Lincolnshire, Illinois, specializes in enterprise asset intelligence solutions, operating primarily in two segments: Asset Intelligence and Tracking, and Enterprise Visibility and Mobility [4]