Zebra Technologies announces results for the third quarter ended Sept. 27, 2025.

“Our strong third quarter results were driven by solid demand, lower-than-expected tariffs, operating expense leverage and continued excellent execution by our teams,” said Bill Burns, CEO of Zebra Technologies. “We continue to advance our industry leadership with solutions that digitize and automate our customers’ workflows, and are excited about the opportunity to accelerate our connected frontline vision through our recent acquisition of Elo Touch Solutions. We are also building on our track record of value creation for shareholders, committing to $500 million of share repurchases over the next twelve months, supported by our strong balance sheet and cash flow.”

3Q 2025 Results

Net sales were $1,320 million in the third quarter of 2025 compared to $1,255 million in the prior year. Net sales in the Enterprise Visibility & Mobility (EVM) segment were $865 million in the third quarter of 2025 compared to $845 million in the prior year. Asset Intelligence & Tracking (AIT) segment net sales were $455 million in the third quarter of 2025 compared to $410 million in the prior year.

Consolidated organic net sales for the third quarter of 2025 increased 4.8% year-over-year, with a 2.0% increase in the EVM segment and a 10.6% increase in the AIT segment.

Third quarter 2025 gross profit was $634 million compared to $613 million in the prior year. Gross margin decreased to 48.0% for the third quarter of 2025 compared to 48.8% in the prior year primarily due to approximately $6 million of U.S. import tariff expense net of mitigating actions.

Net income for the third quarter of 2025 was $101 million, or $1.97 per diluted share, compared to net income of $137 million, or $2.64 per diluted share, in the prior year.

Adjusted EBITDA for the third quarter of 2025 increased to $285 million, or 21.6% of adjusted net sales, compared to $268 million, or 21.4% of adjusted net sales in the prior year.

Effective with the fourth quarter of 2025, the company’s reportable segments will be changed to Connected Frontline and Asset Visibility & Automation.

Balance Sheet and Cash Flow

As of Sept. 27, 2025, the company had cash and cash equivalents of $1,053 million and total debt of $2,183 million.

For the first nine months of 2025, net cash provided by operating activities was $560 million and the company invested $56 million in capital expenditures, resulting in free cash flow of $504 million. The company also made share repurchases of $284 million and acquired Photoneo for $62 million.

The company expects fourth quarter sales growth between 8% and 11% compared to the prior year. This expectation includes approximately 850 basis points of favorable impact from acquisitions and foreign currency translation. Free cash flow for the full year 2025 is expected to be greater than $800 million.