Zebra Technologies Reports 6.2% Sales Growth to $1.293 Billion in Q2 2025

Zebra Technologies Corporation reported its financial results for the second quarter of 2025, revealing a net sales increase to $1.293 billion, up 6.2% from $1.217 billion in the same quarter of the previous year. The company's operating income rose to $183 million, compared to $167 million in the prior year, while net income slightly decreased to $112 million, or $2.19 per diluted share, from $113 million, or $2.17 per diluted share, in the second quarter of 2024. The growth in sales was attributed to improved demand trends across both of its segments, Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM).

In terms of segment performance, AIT reported net sales of $418 million, a 5.3% increase from $397 million in the prior year, driven by higher sales of printing and RFID products. EVM saw a 6.7% increase in net sales to $875 million, up from $820 million, primarily due to increased sales of mobile computing products. The overall gross margin for the company decreased to 47.6% from 48.4% year-over-year, largely due to unfavorable impacts from tariffs, despite a favorable business mix in the AIT segment.

Zebra Technologies also made strategic moves during the quarter, including the acquisition of Photoneo, a developer of 3D machine vision technology, for $62 million. This acquisition is expected to enhance Zebra's offerings in the EVM segment. The company has also been active in share repurchases, having repurchased approximately $250 million of its common stock year-to-date, including $125 million in the second quarter alone.

Operationally, Zebra reported a total employee headcount of 8,500 as of June 28, 2025, reflecting a slight increase from the previous year. The company continues to expand its geographic footprint, with North America contributing $647 million in sales, up 8% year-over-year, while the Asia-Pacific region saw a significant 19.5% increase in sales. The company’s effective tax rate for the quarter was 18.8%, up from 16.9% in the prior year, primarily due to reduced benefits from share-based compensation deductions.

Looking ahead, Zebra Technologies anticipates continued challenges from evolving trade policies and tariffs, which may impact operating results in the latter half of 2025. However, the company remains focused on mitigating these impacts through diversifying its product sourcing and optimizing its product portfolio. The outlook for the remainder of the year remains cautiously optimistic, with expectations for ongoing demand growth across its segments.