Zebra Technologies Reports 5.2% Revenue Growth to $1.32 Billion in Q3 2025

Zebra Technologies Corporation reported its financial results for the third quarter of 2025, revealing a total net sales of $1.32 billion, a 5.2% increase from $1.26 billion in the same quarter of the previous year. The company's net income for the quarter was $101 million, or $1.97 per diluted share, down from $137 million, or $2.64 per diluted share, in the prior year. The decline in net income was attributed to higher operating expenses and an increased effective tax rate of 36.5%, compared to 8.1% in the same quarter last year.

In terms of operational performance, Zebra's two segments, Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM), both experienced growth. AIT net sales rose by 11% to $455 million, driven by increased demand for printing products, while EVM sales increased by 2.4% to $865 million, primarily due to higher mobile computing product sales. However, EVM's gross margin decreased to 46.7% from 49.0% due to unfavorable tariff impacts and lower service margins. Overall, the company reported a gross profit of $634 million, with a gross margin of 48.0%, slightly down from 48.8% in the previous year.

Zebra Technologies also made strategic moves during the quarter, including the acquisition of Photoneo, a developer of 3D machine vision technology, for $62 million, which is expected to enhance its product offerings. Additionally, the company announced the acquisition of Elo Touch Solutions for approximately $1.3 billion, aimed at expanding its self-service and consumer-facing workflow solutions. These acquisitions are part of Zebra's strategy to diversify its product portfolio and enhance its market position.

The company reported a total of 50,660,242 shares of Class A common stock outstanding as of October 21, 2025. Zebra's cash and cash equivalents increased to $1.05 billion from $901 million at the end of the previous fiscal year. The company also repurchased $284 million of its common stock year-to-date, reflecting its commitment to returning value to shareholders. Looking ahead, Zebra Technologies anticipates continued growth driven by demand across its primary end markets, although it remains cautious about potential impacts from tariffs and market conditions.

In summary, Zebra Technologies' third-quarter results reflect a solid performance with increased sales and strategic acquisitions, despite a decline in net income and gross margin. The company is focused on leveraging its acquisitions to enhance its product offerings and maintain its competitive edge in the automatic identification and data capture industry.