Zebra Technologies 2025 Q1 Earnings Strong Performance as Net Income Surges 18.3%
Wednesday, Apr 30, 2025 5:04 am ET
54min read Zebra Technologies (ZBRA) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. zebra technologies surpassed analyst expectations with quarterly sales of $1.31 billion, an 11.3% increase year-over-year, beating estimates of $1.29 billion. The company maintained its full-year sales growth guidance at 3%-7%, despite adjusting estimates for non-GAAP diluted earnings. zebra expects Q2 sales growth between 4%-7% and adjusted earnings per share of $3.00 to $3.50, slightly below analyst estimates.
Revenue
Zebra Technologies experienced a notable revenue increase in Q1 2025, reaching $1.31 billion, up from $1.18 billion in the same period last year. The tangible products segment was the largest contributor, generating $1.06 billion, while the services and software segment added $246 million to the total revenue. This growth reflects a robust demand in various sectors, fueling the company's overall success during the quarter.
Earnings/Net Income
Zebra Technologies's EPS rose 17.9% to $2.64 in 2025 Q1 from $2.24 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $136 million in 2025 Q1, marking 18.3% growth from $115 million in 2024 Q1.
Post Earnings Price Action Review
Following the disclosure of Zebra Technologies' earnings report, the stock has historically demonstrated favorable short-to-medium-term performance. The 3-day win rate stands at 51.52%, while the 10-day win rate slightly improves to 52.95%, and the 30-day win rate reaches 55.74%. This pattern suggests a tendency for the stock to gain value immediately after earnings announcements. The maximum observed return was 3.54% over a 30-day period, indicating potential for price appreciation post-report. These statistics reflect a consistent ability to capitalize on positive earnings news, showcasing a promising outlook for investors in the aftermath of such disclosures.
CEO Commentary
Bill Burns, Chief Executive Officer, highlighted that Zebra Technologies delivered strong results in Q1 2025, achieving over $1.3 billion in sales, a 12% year-over-year increase. He noted broad-based growth across all major product categories and regions, driven by continued demand in the retail and e-commerce sectors. Burns emphasized the importance of navigating macroeconomic uncertainties while preserving profitability and investing in long-term growth. He expressed confidence in Zebra's ability to benefit from secular trends in digitization and automation, stating, "Our solutions are critical in any economic environment," and underscored the company's agility in adapting to the dynamic landscape.
Guidance
Zebra Technologies expects Q2 growth between 4% and 7%, with non-GAAP diluted earnings per share projected in the range of $3.00 to $3.50. For the full year 2025, the company maintains sales guidance of 3% to 7% growth, with total gross profit impact from tariffs anticipated at approximately $70 million. Adjusted EBITDA margin is now expected to be between 20% and 21%. Free cash flow for the year is projected to exceed $700 million, reflecting robust operational performance and continued focus on capital allocation.
Additional News
Zebra Technologies recently announced several strategic initiatives focused on expanding its market presence. The company is exploring potential mergers and acquisitions, aiming to enhance its portfolio and strengthen its position in key industries. Additionally, Zebra Technologies introduced changes in its executive team, appointing a new Chief Operating Officer to drive operational efficiency and growth. The company has also unveiled plans for a stock buyback program, demonstrating its commitment to returning value to shareholders. These developments align with Zebra's long-term strategic goals, emphasizing innovation and leadership in the technology sector.
Revenue
Zebra Technologies experienced a notable revenue increase in Q1 2025, reaching $1.31 billion, up from $1.18 billion in the same period last year. The tangible products segment was the largest contributor, generating $1.06 billion, while the services and software segment added $246 million to the total revenue. This growth reflects a robust demand in various sectors, fueling the company's overall success during the quarter.
Earnings/Net Income
Zebra Technologies's EPS rose 17.9% to $2.64 in 2025 Q1 from $2.24 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $136 million in 2025 Q1, marking 18.3% growth from $115 million in 2024 Q1.
Post Earnings Price Action Review
Following the disclosure of Zebra Technologies' earnings report, the stock has historically demonstrated favorable short-to-medium-term performance. The 3-day win rate stands at 51.52%, while the 10-day win rate slightly improves to 52.95%, and the 30-day win rate reaches 55.74%. This pattern suggests a tendency for the stock to gain value immediately after earnings announcements. The maximum observed return was 3.54% over a 30-day period, indicating potential for price appreciation post-report. These statistics reflect a consistent ability to capitalize on positive earnings news, showcasing a promising outlook for investors in the aftermath of such disclosures.
CEO Commentary
Bill Burns, Chief Executive Officer, highlighted that Zebra Technologies delivered strong results in Q1 2025, achieving over $1.3 billion in sales, a 12% year-over-year increase. He noted broad-based growth across all major product categories and regions, driven by continued demand in the retail and e-commerce sectors. Burns emphasized the importance of navigating macroeconomic uncertainties while preserving profitability and investing in long-term growth. He expressed confidence in Zebra's ability to benefit from secular trends in digitization and automation, stating, "Our solutions are critical in any economic environment," and underscored the company's agility in adapting to the dynamic landscape.
Guidance
Zebra Technologies expects Q2 growth between 4% and 7%, with non-GAAP diluted earnings per share projected in the range of $3.00 to $3.50. For the full year 2025, the company maintains sales guidance of 3% to 7% growth, with total gross profit impact from tariffs anticipated at approximately $70 million. Adjusted EBITDA margin is now expected to be between 20% and 21%. Free cash flow for the year is projected to exceed $700 million, reflecting robust operational performance and continued focus on capital allocation.
Additional News
Zebra Technologies recently announced several strategic initiatives focused on expanding its market presence. The company is exploring potential mergers and acquisitions, aiming to enhance its portfolio and strengthen its position in key industries. Additionally, Zebra Technologies introduced changes in its executive team, appointing a new Chief Operating Officer to drive operational efficiency and growth. The company has also unveiled plans for a stock buyback program, demonstrating its commitment to returning value to shareholders. These developments align with Zebra's long-term strategic goals, emphasizing innovation and leadership in the technology sector.
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