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- **Revenue Growth**: Q3 up 5% to $1.3B, driven by double-digit RFID growth and regional strength in APAC (+23%), LACMA (+8%).
- **Profitability**: Non-GAAP EPS $3.88 (+11%), EBITDA margin 21.6% (20bps improvement).
- **Strategic Moves**: $500M share buyback announced; Elo acquisition to expand connected frontline solutions.
- **AI Momentum**: Early AI pilots showing 10-20% productivity gains; first revenues in 2026.
- **Tariff Mitigation**: 2025 impact $24M; 2026 U.S. imports from China <20%.
- **2025 Outlook**: Full-year EPS $15.80 (+17%), sales +8%, EBITDA margin 21.5%.

**【CEO Summary Section】**
- Q3 revenue of $1.3 billion, up 5% YoY, driven by strong demand in Asia Pacific (+23%), Latin America (+8%), and North America (+6%).
- Adjusted EBITDA margin improved 20bps to 21.6%, with non-GAAP EPS of $3.88 (+11% YoY).
- Key growth areas: RFID (+double digits), mobile computing, and printing. Retail/e-commerce and healthcare outperformed, while manufacturing remained soft.
- $500 million share buyback program announced, with $300 million executed YTD.
- Acquired Elo Touch Solutions to expand connected frontline capabilities.

**【CFO Financial Commentary】**
- Q3 GAAP net income: $123 million; Non-GAAP EPS: $3.88 (vs. $3.50 prior year).
- Adjusted gross margin: 48.2% (-90bps due to tariffs), with operating expenses down 110bps as % of sales.
- Free cash flow: $504 million YTD; cash balance: $1.0 billion.
- Q4 outlook: 8-11% sales growth (including $850bps from Elo), EBITDA margin ~22%, EPS $4.20-$4.40.
- 2025 full-year guidance: sales +8%, EBITDA margin 21.5%, EPS $15.80 (+17% YoY).
- Tariffs expected to impact Q4 by $6 million, fully mitigated by end of 2026.

**【Q&A Highlights】**
- **Demand Trends**: Q3 strength driven by early orders for peak season; Q4 outlook balanced with similar year-end project spending as 2024.
- **AI Strategy**: Early AI pilots showing 10-20% productivity gains; first revenues expected in 2026, scaling thereafter.
- **Tariff Mitigation**: 2025 tariff impact $24 million; 2026 U.S. imports from China <20%.
- **Machine Vision**: Softness in manufacturing, but diversifying into EV and semiconductor markets.
- **Share Buyback**: $500 million over 12 months; dynamic execution based on market conditions.
- **Segment Growth**: Connected Frontline (+5-7% CAGR) and Asset Visibility & Automation (+5-7% CAGR) driven by AI, IoT, and on-demand economy trends.

Zebra Technologies Corporation (ZBRA) Q3 2025 Earnings Call Transcript

Revenue

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ZBRA

ZBRA fundamentals

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