Navigating Uncertainty: Contradictions in Customer Spending and Growth Outlook from 2025 Earnings Calls

Revenue and Earnings Growth:
- Zebra Technologies reported sales of $1.3 billion for Q2 2025, indicating a 6% increase compared to the prior year.
- The growth was driven by solid demand across the business, notably in North America, Latin America, and Asia Pacific regions, with strong performance in verticals such as transportation & logistics and retail & e-commerce.

Impact of Tariffs:
- Zebra experienced a $12 million impact from U.S. import tariffs on its products in the first half of the year, with an expected $10 million impact in Q3.
- The company mitigated these tariffs by shifting production from China and implementing pricing adjustments, with North America imports from China now representing 20% of the mix by year-end.

Acquisition Strategy and Elo Integration:
- Zebra announced the acquisition of Elo Touch Solutions, a leading provider of point-of-sale solutions with $400 million in annual revenues.
- The acquisition is expected to be immediately accretive, with projected $25 million in annual EBITDA synergies by year three, enhancing Zebra's portfolio and market leadership.

Outlook and Guidance:
- Zebra raised its full-year sales growth guidance to between 5% and 7%, reflecting strong demand and the impact of the recent Photoneo and Elo acquisitions.
- The company's adjusted EBITDA margin is expected to be between 21% and 22% for the full year, with a focus on optimizing working capital levels and minimizing supply chain disruptions.