Why Are Zebra (ZBRA) Shares Soaring Today

What Happened?

Shares of enterprise data capture company Zebra Technologies (NASDAQ:ZBRA) jumped 8.8% in the pre-market session after the company reported strong first-quarter 2025 results, which exceeded expectations for both organic revenue and earnings per share. The key highlight was the 12% jump in organic sales, led by 18% growth in the Asset Intelligence & Tracking segment and a solid 9% increase in Enterprise Visibility & Mobility. Despite the upbeat results, the company's full-year and next-quarter EPS outlooks fell below Wall Street's expectations, with management citing a $70 million headwind from U.S. import tariffs as a key drag on profitability. Overall, this was a mixed quarter, but the market seems to be rewarding the strong quarter and overlooking the tepid guidance.

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What The Market Is Telling Us

Zebra’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Zebra is down 32.7% since the beginning of the year, and at $258.25 per share, it is trading 38.7% below its 52-week high of $421.11 from January 2025. Investors who bought $1,000 worth of Zebra’s shares 5 years ago would now be looking at an investment worth $1,054.

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