Zebra Technologies Q3 sales edge past estimates on lower-than-expected tariff impact

Zebra Technologies

28/10/2025 10:44

Overview

Zebra Q3 net sales rise 5.2% yr/yr, beating analyst expectations

Adjusted EPS for Q3 beats analyst expectations, reflecting strong operational performance

Company plans $500 mln share repurchase over next 12 months

Outlook

Company expects Q4 sales growth between 8% and 11%

Adjusted EBITDA margin for Q4 expected to be around 22%

Non-GAAP EPS for Q4 expected to be $4.20 to $4.40

Result Drivers

DEMAND AND TARIFFS - Co attributes strong Q3 results to solid demand and lower-than-expected tariffs, per CEO Bill Burns

SEGMENT GROWTH - AIT segment sales increased 10.6% yr/yr, contributing significantly to overall sales growth

ACQUISITION IMPACT - Recent acquisition of Elo Touch Solutions expected to accelerate connected frontline vision

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$1.32 bln
$1.31 bln (13 Analysts)
Q3 Adjusted EPS
Beat
$3.88
$3.75 (14 Analysts)
Q3 EPS
$1.97


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electronic equipment & parts peer group is "buy"

Wall Street's median 12-month price target for Zebra Technologies Corp is $375.00, about 17.2% above its October 27 closing price of $310.57

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw9fCLd5a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)