Zebra Technologies' fourth quarter delivered results that surpassed Wall Street’s revenue expectations, which was met by a strong positive market reaction. Management attributed this performance to solid growth in Asia Pacific and Latin America, a return to growth in Europe, and continued expansion in healthcare, manufacturing, and retail sectors. CEO William Burns credited the company’s ability to “fully mitigate existing tariffs and drive operating expense leverage through productivity initiatives,” as well as the successful integration of recent acquisitions like Elo Touch and Fotoneo. The quarter also benefited from robust demand for Zebra’s Connected Frontline and Asset Visibility and Automation segments, while operating expenses were managed through restructuring and productivity improvements.
Is now the time to buy ZBRA? Find out in our full research report (it’s free for active Edge members).
Zebra (ZBRA) Q4 CY2025 Highlights:
- Revenue: $1.48 billion vs analyst estimates of $1.46 billion (10.6% year-on-year growth, 1.2% beat)
- Adjusted EPS: $4.33 vs analyst estimates of $4.33 (in line)
- Adjusted EBITDA: $326 million vs analyst estimates of $322.6 million (22.1% margin, 1.1% beat)
- Revenue Guidance for Q1 CY2026 is $1.48 billion at the midpoint, above analyst estimates of $1.43 billion
- Adjusted EPS guidance for the upcoming financial year 2026 is $18 at the midpoint, beating analyst estimates by 2.1%
- Operating Margin: 9.4%, down from 16.9% in the same quarter last year
- Organic Revenue rose 2.5% year on year (beat)
- Market Capitalization: $12.42 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Zebra’s Q4 Earnings Call
- Thomas Allen Moll (Stephens): Asked about the timing and magnitude of memory pricing headwinds, CFO Nathan Winters explained mitigation strategies include supplier negotiations, product transitions, and targeted price increases, expecting full offset within the year.
- Guy Drummond Hardwick (Barclays): Inquired about the reasons for above-seasonal Q1 guidance and visibility. CEO William Burns cited momentum from recent acquisitions, demand trends, and a stable pipeline, with CFO Winters noting that Elo’s seasonality and lack of Q4 pull-forward contributed.
- Joseph Craig Giordano (TD Cowen): Questioned the breadth of the organic growth guidance and the structural shift in pricing. Winters said underlying demand, acquisitions, and FX drive growth, while Burns noted customers are accepting necessary price adjustments due to rising input costs.
- Keith Michael Housum (Northcoast Research): Probed availability concerns for memory components. Winters and Burns assured that supplier relationships, early project visibility, and transitions to higher-density memory should ensure supply meets demand.
- Piyush Avasthy (Citi): Sought clarification on service and software margin pressure. Winters attributed it to higher repair costs and software platform investments but expects margins to level out as unification and scaling progress.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will closely monitor (1) the effectiveness of Zebra’s memory cost mitigation measures and their impact on gross margins, (2) the pace of AI and RFID solution adoption—especially as new product pilots shift to scaled deployments, and (3) the ability to sustain growth across EMEA, Asia Pacific, and emerging verticals. Execution on software platform unification and supply chain resilience will also be key factors.
Zebra currently trades at $252.37, in line with $252.50 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
