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Zebra Technologies Q2 Earnings & Revenues Top Estimates, Rise Y/Y

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Key Takeaways

  • {\"0\":\"ZBRA\'s Q2 EPS rose 13.5% to $3.61, beating estimates; revenues grew 6.2% to $1.29B.\",\"1\":\"Enterprise Visibility & Mobility revenues climbed 6.7%, driven by strong organic sales.\",\"2\":\"ZBRA raised 2025 EPS guidance to $15.25-$15.75 and expects at least $800M in free cash flow.\"}

Zebra Technologies Corporation (ZBRA - Free Report) reported second-quarter 2025 adjusted earnings of $3.61 per share, which surpassed the Zacks Consensus Estimate of $3.31. The bottom line increased 13.5% from $3.18 per share reported in the year-ago quarter.

Total revenues of $1.29 billion surpassed the consensus estimate of $1.28 billion. The top line increased 6.2% year over year, driven by strength in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking units. Consolidated organic net sales increased 6.3% year over year. Acquisitions contributed 0.2% to revenues while foreign-currency translation had a negative impact of 0.3% on total revenues.

ZBRA’s Segmental Performance

Revenues from the Asset Intelligence & Tracking segment rose 5.3% year over year to $418 million. The Zacks Consensus Estimate for segmental revenues was pegged at $430 million. Organic net sales increased 5.8%. Foreign-currency translation had a negative impact of 0.5% on total revenues.

The Enterprise Visibility & Mobility segment’s revenues totaled $875 million, up 6.7% year over year. The consensus estimate for segmental revenues was pegged at $853 million. Organic net sales increased 6.5%. Acquisitions contributed 0.3% to revenues while foreign-currency translation had a negative impact of 0.1% on total revenues.

ZBRA’s Margin Profile

In the second quarter, Zebra Technologies’ cost of sales totaled $677 million, up 7.8% year over year. Total operating expenses increased 2.6% year over year to $433 million.

The company reported a net income of $112 million compared with $113 million in the year-ago period.

Zebra Technologies’ Balance Sheet and Cash Flow

Zebra Technologies had cash and cash equivalents of $872 million at the end of the second quarter compared with $901 million at the end of December 2024. Long-term debt totaled $2.13 billion compared with $2.09 billion at the end of December 2024.

In the first six months of 2025, Zebra Technologies generated net cash of $325 million in operating activities compared with $413 million in the year-ago period. The company incurred a capital expenditure of $37 million in the same time frame. Free cash flow amounted to $288 million compared with $389 million in the year-ago period.

ZBRA’s Guidance

For the third quarter of 2025, Zebra Technologies expects net sales to increase in the band of 2-6% year over year.

Adjusted EBITDA margin is anticipated to be approximately 21% in the third quarter. Adjusted earnings per share are expected to be in the band of $3.60-$3.80. 

For 2025, ZBRA has increased its adjusted earnings outlook. The company now expects adjusted earnings to be in the range of $15.25-$15.75 per share compared with $13.75-$14.75 anticipated earlier. ZBRA expects net sales to increase in the band of 5-7% year over year. It expects free cash flow to be at least $800 million.

ZBRA’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Dover Corporation (DOV - Free Report) reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago.

Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion.

Teck Resources Limited (TECK - Free Report) came out with earnings of $0.27 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $0.2. This compares with earnings of $0.58 per share a year ago.

Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion. 

Packaging Corporation of America (PKG - Free Report) reported earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.44. This compares with earnings of $2.2 per share a year ago.

Packaging Corp. posted revenues of $2.17 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.5%. This compares with year-ago revenues of $2.08 billion.

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