Zebra Technologies Q4 Earnings Miss Estimates, Increase Y/Y

Zebra Technologies Corporation ZBRA reported fourth-quarter 2025 adjusted earnings of $4.33 per share, which missed the Zacks Consensus Estimate of $4.34. The bottom line increased 8.3% from $4.00 per share reported in the year-ago quarter.

Total revenues of $1.48 billion surpassed the consensus estimate of $1.46 billion. The top line increased 10.6% year over year, driven by strength across its segments. Consolidated organic net sales increased 2.5% year over year.

In 2025, ZBRA reported revenues of $5.40 billion, which increased 8.3% year over year. The company’s adjusted earnings were $15.84 per share, up 17.2% year over year.

ZBRA’s Segmental Performance

Effective from the fourth quarter of 2025, the company started reporting under two segments, namely Connected Frontline and Asset Visibility & Automation.

Revenues from the Connected Frontline segment rose 17.6% year over year to $854 million. Organic net sales increased 3.6%.

The Asset Visibility & Automation segment’s revenues totaled $621 million, up 2.1% year over year. Organic net sales increased 1.3%.

ZBRA’s Margin Profile

In the fourth quarter, Zebra Technologies’ cost of sales totaled $777 million, up 13.3% year over year. Total operating expenses increased 32.2% year over year to $ $559 million.

The company reported a net income of $70 million compared with $163 million in the year-ago period.

Zebra Technologies’ Balance Sheet and Cash Flow

Zebra Technologies had cash and cash equivalents of $125 million at the end of the fourth quarter compared with $901 million at the end of December 2024. Long-term debt totaled $2.36 billion compared with $2.09 billion at the end of December 2024.

In 2025, Zebra Technologies generated net cash of $917 million in operating activities compared with $1.01 billion in the year-ago period. The company incurred a capital expenditure of $86 million in the same time frame. Free cash flow amounted to $831 million compared with $954 million in the year-ago period.

ZBRA’s Guidance

For the first quarter of 2026, Zebra Technologies expects net sales to increase in the band of 11-15% year over year.

Adjusted EBITDA margin is anticipated to be 21-22% in the first quarter. Adjusted earnings per share are expected to be in the band of $4.05-$4.35. 

For 2026, ZBRA has issued its financial outlook. The company now expects adjusted earnings to be $17.70-$18.30 per share. Adjusted EBITDA margin is anticipated to be approximately 22% in the year. ZBRA currently expects net sales to increase 9-13% year over year. It expects free cash flow to be at least $900 million.

ZBRA Zacks Rank

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.

Performance of Other Companies

Graco Inc. GGG posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.

Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares with year-ago revenues of $548.67 million.

Baker Hughes Company BKR reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.

Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.

3M Company MMM delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.

MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.

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

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