Zebra Technologies Q3 Earnings & Revenues Top Estimates, 25' View Up

Zebra Technologies Corporation ZBRA reported third-quarter 2025 adjusted earnings of $3.88 per share, which surpassed the Zacks Consensus Estimate of $3.75. The bottom line increased 11.2% from $3.49 per share reported in the year-ago quarter.

Total revenues of $1.32 billion surpassed the consensus estimate of $1.31 billion. The top line increased 5.2% year over year, driven by strength in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking units. Consolidated organic net sales increased 4.8% year over year. Both acquisitions and foreign-currency translation had a positive impact of 0.2% on total revenues.

ZBRA’s Segmental Performance

Revenues from the Asset Intelligence & Tracking segment rose 11% year over year to $455 million. The Zacks Consensus Estimate for segmental revenues was pegged at $426 million. Organic net sales increased 10.6%. Foreign-currency translation had a positive impact of 0.4% on total revenues.

The Enterprise Visibility & Mobility segment’s revenues totaled $865 million, up 2.4% year over year. The consensus estimate for segmental revenues was pegged at $887 million. Organic net sales increased 2%. Acquisitions contributed 0.3% to revenues while foreign-currency translation had a positive impact of 0.1% on total revenues.

Zebra Technologies Corporation Price, Consensus and EPS Surprise

Zebra Technologies Corporation price-consensus-eps-surprise-chart | Zebra Technologies Corporation Quote

ZBRA’s Margin Profile

In the third quarter, Zebra Technologies’ cost of sales totaled $686 million, up 6.9% year over year. Total operating expenses increased 6.9% year over year to $451 million.

The company reported a net income of $101 million compared with $137 million in the year-ago period.

Zebra Technologies’ Balance Sheet and Cash Flow

Zebra Technologies had cash and cash equivalents of $1,053 million at the end of the third quarter compared with $901 million at the end of December 2024. Long-term debt totaled $2.11 billion compared with $2.09 billion at the end of December 2024.

In the first nine months of 2025, Zebra Technologies generated net cash of $560 million in operating activities compared with $707 million in the year-ago period. The company incurred a capital expenditure of $56 million in the same time frame. Free cash flow amounted to $504 million compared with $666 million in the year-ago period.

ZBRA’s Guidance

For the fourth quarter of 2025, Zebra Technologies expects net sales to increase in the band of 8-11% year over year.

Adjusted EBITDA margin is anticipated to be approximately 22% in the fourth quarter. Adjusted earnings per share are expected to be in the band of $4.20-$4.40. 

For 2025, ZBRA has increased its financial outlook. The company now expects adjusted earnings to be $15.80 per share compared with $15.25-$15.75 anticipated earlier. Adjusted EBITDA margin is anticipated to be approximately 21.5% in the year. ZBRA currently expects net sales to increase 8% year over year, higher than 5-7% projected earlier. It expects free cash flow to be at least $800 million and capital expenditure of $70-$80 million.

ZBRA’s Zacks Rank & Key Picks

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks are discussed below:

Nordson Corporation NDSN presently carries a Zacks Rank #2 (Buy). NDSN’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 3.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s 2025 earnings has increased 0.4%.

RBC Bearings Incorporated RBC currently carries a Zacks Rank of 2. RBC has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 3.8%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ 2025 earnings has increased 0.4%.

Helios Technologies HLIO currently carries a Zacks Rank of 2. HLIO has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 15.5%.  In the past 60 days, the Zacks Consensus Estimate for Helios’ 2025 earnings has inched up 0.4%.

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This article originally published on Zacks Investment Research (zacks.com).

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