Financial Data and Key Metrics Changes - In Q2 2025, Zebra Technologies reported sales of $1.3 billion, representing a greater than 6% increase compared to the prior year [6] - Adjusted EBITDA margin was 20.6%, reflecting a 10 basis point improvement year over year [6] - Non-GAAP diluted earnings per share were $3.61, a 14% increase from the previous year [6][11] Business Line Data and Key Metrics Changes - Strong growth was observed in mobile computing, scanning, and RFID, with double-digit growth in mobile computing and RFID in North America [6][10] - The services and software recurring revenue business grew slightly during the quarter [8] - Transportation logistics, retail, and e-commerce were the highest growth verticals, while healthcare and manufacturing continued to lag [6][10] Market Data and Key Metrics Changes - North America sales grew by 8%, while Asia Pacific sales increased by 20%, led by Australia, New Zealand, and India [10] - Latin America saw an 11% sales growth, while EMEA experienced a slight decline of 1% due to strong prior year comparisons [10] Company Strategy and Development Direction - The acquisition of Elo Touch Solutions is aimed at enhancing Zebra's market leadership and expanding its portfolio of customer-facing solutions [5][21] - The company is focused on digitizing and automating workflows across various industries, leveraging its innovative solutions [18][22] - Zebra plans to pursue attractive market and geographic expansion opportunities while delivering a comprehensive software-differentiated portfolio [22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand resilience despite uncertainties in trade policy and macroeconomic conditions [7][34] - The recently passed U.S. tax legislation is expected to be beneficial for some customers, although its impact on demand is still uncertain [7][34] - The company raised its full-year sales growth guidance to between 5% and 7%, reflecting strong second-quarter results and a solid backlog [16][34] Other Important Information - Zebra generated $288 million of free cash flow year to date and repurchased $250 million of stock [12] - The company expects a $30 million gross profit impact from tariffs for the full year, which is favorable compared to previous expectations [16][14] Q&A Session Summary Question: How does the Elo acquisition technology tie in with Zebra's? - The acquisition expands Zebra's addressable market by approximately $8 billion, enhancing customer-facing solutions like point of sale and self-service kiosks [28][30] Question: How is customer budget release expected in the second half? - Demand has remained resilient, with customers generally maintaining capital spending levels despite some caution [32][34] Question: What is Elo's business cyclicality compared to Zebra's? - Elo's demand cycle is more balanced throughout the year, unlike Zebra's which sees significant year-end spending [39] Question: How are tariffs being monitored and managed? - Zebra is actively working with trade partners to understand tariff impacts and has a playbook for managing supply chain resilience [63][64] Question: What is the competitive landscape post-Elo acquisition? - The acquisition is expected to enhance Zebra's competitive position, leveraging strong customer relationships and expanding into new markets [66][68] Question: What are the trends in various verticals? - Retail and e-commerce continue to show strength, while manufacturing is slower compared to other sectors [71][94]