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Why Is Zebra (ZBRA) Down 7.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Zebra Technologies (ZBRA - Free Report) . Shares have lost about 7.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Zebra due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Zebra Technologies Q3 Earnings & Revenues Top Estimates, 25' View Up
Zebra Technologies 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.
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.
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.
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, Zebra Technologies 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. It 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates revision.
VGM Scores
At this time, Zebra has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Zebra has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is Zebra (ZBRA) Down 7.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Zebra Technologies (ZBRA - Free Report) . Shares have lost about 7.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Zebra due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Zebra Technologies Q3 Earnings & Revenues Top Estimates, 25' View Up
Zebra Technologies 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.
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.
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.
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, Zebra Technologies 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. It 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates revision.
VGM Scores
At this time, Zebra has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Zebra has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.