Zebra Technologies Corp Reports 5.2% Sales Increase

By Philip Seaworth • Tuesday, October 28 15:41 • Permanent Link

Zebra Technologies Corporation has announced its third-quarter 2025 results, revealing a 5.2% year-over-year increase in net sales, totaling $1,320 million. The company reported a net income of $101 million and net income per diluted share of $1.97. Non-GAAP diluted EPS increased to $3.88, and adjusted EBITDA also increased to $285 million.

Looking at specific metrics, the company's gross profit for the third quarter of 2025 was $634 million, representing a 3.4% increase from the prior year. However, the gross margin decreased to 48.0% from 48.8% in the prior year. The adjusted gross margin was 48.2% in the third quarter of 2025 compared to 49.1% in the prior year.

Operating expenses increased to $451 million in the third quarter of 2025 from $422 million in the prior year. Adjusted operating expenses also increased to $368 million from $364 million in the prior year.

Net income for the third quarter of 2025 decreased to $101 million from $137 million in the prior year, with non-GAAP net income increasing to $198 million from $181 million for the same period. This resulted in non-GAAP diluted earnings per share of $3.88 compared to $3.49 in the prior year.

The company's balance sheet as of September 27, 2025, reflected cash and cash equivalents of $1,053 million and total debt of $2,183 million. For the first nine months of 2025, the company generated free cash flow of $504 million after investing $56 million in capital expenditures and making share repurchases of $284 million while acquiring Photoneo for $62 million.

Looking ahead, Zebra Technologies expects fourth quarter sales growth between 8% and 11% compared to the prior year. The company also anticipates an adjusted EBITDA margin of approximately 22% and non-GAAP diluted earnings per share in the range of $4.20 to $4.40 for the fourth quarter.

Additionally, the company plans to repurchase $500 million of its common stock over the next 12 months, supported by its strong balance sheet and cash flow.

Following these announcements, the company's shares moved 0.57%, and are now trading at a price of $310.57. For more information, read the company's full 8-K submission here.

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