Zebra Technologies 2025 Q2 Earnings Mixed Performance with EPS Rise and Net Income Decline
Generated by AI AgentAinvest Earnings Report Digest
Wednesday, Aug 6, 2025 5:05 am ET1min read
ZBRA--
Aime Summary
Aime SummaryZebra Technologies (ZBRA) reported its fiscal 2025 Q2 earnings on August 5, 2025, delivering mixed results. While the company exceeded expectations with revenue growth and raised full-year guidance, net income slightly declined year-over-year. The results reflect strong execution and demand, with a strategic focus on innovation and shareholder value.
Zebra Technologies reported total revenue of $1.29 billion for Q2 2025, a 6.2% increase compared to the same period in 2024. The growth was driven by robust performance across its core business segments, with tangible products accounting for the largest share at $1.05 billion. Meanwhile, services and software generated $238 million, contributing to a total net sales figure of $1.29 billion.
The company’s earnings per share (EPS) rose 0.5% to $2.20 in Q2 2025, up from $2.19 in Q2 2024, signaling continued earnings growth. However, net income dipped to $112 million, a 0.9% decline from $113 million in the prior-year period.
Despite the earnings beat, the stock has faced downward pressure, with a 13.70% drop in the latest trading day, 8.75% in the past week, and 6.52% month-to-date.
A post-earnings trading strategy that involves buying ZBRA after it beats revenue expectations and holding for 30 days generated a 6.07% return. However, this underperformed compared to the benchmark return of 86.40%, resulting in an excess return of -80.33%. The strategy recorded a maximum drawdown of 0.00% and a Sharpe ratio of 0.03, indicating a low-risk yet low-reward approach.
Chief Executive Officer Bill Burns highlighted the company’s strong first-half performance and raised full-year guidance, driven by solid demand, team execution, and lower-than-expected tariffs. He emphasized continued momentum and a focus on driving growth through innovative solutions that digitize and automate customer workflows.
For Q3 2025, Zebra TechnologiesZBRA-- expects sales growth of between 2% and 6%, with an adjusted EBITDA margin of approximately 21%. Non-GAAP diluted EPS is projected to range between $3.60 and $3.80. Full-year 2025 guidance was raised to reflect sales growth of 5% to 7%, with adjusted EBITDA margin expected to be 21% to 22% and non-GAAP diluted EPS between $15.25 and $15.75. Free Cash Flow for the full year is now forecasted to exceed $800 million.
Zebra Technologies has made strategic advancements in recent weeks, including the announcement of a partnership with a leading logistics software provider, which aims to integrate Zebra’s hardware with the platform to enhance supply chain visibility. Additionally, the company has initiated a share repurchase program of up to $250 million, reflecting its confidence in long-term value creation. The CEO also announced a strategic realignment of the North American operations, aimed at streamlining processes and improving regional efficiency.
Zebra Technologies reported total revenue of $1.29 billion for Q2 2025, a 6.2% increase compared to the same period in 2024. The growth was driven by robust performance across its core business segments, with tangible products accounting for the largest share at $1.05 billion. Meanwhile, services and software generated $238 million, contributing to a total net sales figure of $1.29 billion.
The company’s earnings per share (EPS) rose 0.5% to $2.20 in Q2 2025, up from $2.19 in Q2 2024, signaling continued earnings growth. However, net income dipped to $112 million, a 0.9% decline from $113 million in the prior-year period.
Despite the earnings beat, the stock has faced downward pressure, with a 13.70% drop in the latest trading day, 8.75% in the past week, and 6.52% month-to-date.
A post-earnings trading strategy that involves buying ZBRA after it beats revenue expectations and holding for 30 days generated a 6.07% return. However, this underperformed compared to the benchmark return of 86.40%, resulting in an excess return of -80.33%. The strategy recorded a maximum drawdown of 0.00% and a Sharpe ratio of 0.03, indicating a low-risk yet low-reward approach.
Chief Executive Officer Bill Burns highlighted the company’s strong first-half performance and raised full-year guidance, driven by solid demand, team execution, and lower-than-expected tariffs. He emphasized continued momentum and a focus on driving growth through innovative solutions that digitize and automate customer workflows.
For Q3 2025, Zebra TechnologiesZBRA-- expects sales growth of between 2% and 6%, with an adjusted EBITDA margin of approximately 21%. Non-GAAP diluted EPS is projected to range between $3.60 and $3.80. Full-year 2025 guidance was raised to reflect sales growth of 5% to 7%, with adjusted EBITDA margin expected to be 21% to 22% and non-GAAP diluted EPS between $15.25 and $15.75. Free Cash Flow for the full year is now forecasted to exceed $800 million.
Zebra Technologies has made strategic advancements in recent weeks, including the announcement of a partnership with a leading logistics software provider, which aims to integrate Zebra’s hardware with the platform to enhance supply chain visibility. Additionally, the company has initiated a share repurchase program of up to $250 million, reflecting its confidence in long-term value creation. The CEO also announced a strategic realignment of the North American operations, aimed at streamlining processes and improving regional efficiency.
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