Zebra Technologies dips after mixed Q3 show

[Zebra Technologies headquarters in Silicon Valley]
Sundry Photography/iStock Editorial via Getty Images

Shares of Zebra Technologies (NASDAQ:ZBRA [https://seekingalpha.com/symbol/ZBRA]) fell about 3% premarket on Tuesday after the company's mixed third quarter results.

Revenue for the third quarter ended Sept. 27, rose [https://seekingalpha.com/pr/20281451-zebra-technologies-announces-third-quarter-2025-results#hasComeFromMpArticle] 5.2% year-over-year to $1.32B, which came in line with analysts' expectations. Meanwhile, non-GAAP EPS jumped 11% year-over-year to $3.88, surpassing [https://seekingalpha.com/news/4509162-zebra-technologies-beats-bottom-line-estimates-initiates-q4-outlook] estimates.

“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 Zebra's CEO Bill Burns.

Net sales in the Enterprise Visibility & Mobility, or EVM, segment climbed about 2.4% year-over-year to $865M. Asset Intelligence & Tracking, or AIT, segment net sales rose around 11% year-over-year to $455M.

As of Sept. 27, the company had cash and cash equivalents of $1.053B and total debt of $2.183B.

OUTLOOK

Zebra expects fourth quarter sales growth between 8% and 11% (midpoint at 9.5%) compared to the prior year,versus thes consensus estimate for growth of 6.17% year-over-year. This expectation includes about 850 basis points of favorable impact from acquisitions and foreign currency translation, according to the company.

Zebra said free cash flow for the full year 2025 is expected to be greater than $800M.

The company expects to buy back $500M worth of its common stock, starting in the fourth quarter of 2025 and continuing through the next 12 months.

MORE ON ZEBRA TECHNOLOGIES

* Zebra Technologies: Appeal Is Slightly On The Increase [https://seekingalpha.com/article/4826127-zebra-technologies-appeal-slightly-on-increase]
* Zebra Technologies Corporation 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4808979-zebra-technologies-corporation-2025-q2-results-earnings-call-presentation]
* Zebra Technologies Corporation (ZBRA) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4808977-zebra-technologies-corporation-zbra-q2-2025-earnings-call-transcript]
* Zebra Technologies beats bottom-line estimates; initiates Q4 outlook [https://seekingalpha.com/news/4509162-zebra-technologies-beats-bottom-line-estimates-initiates-q4-outlook]
* Zebra Technologies Q3 2025 Earnings Preview [https://seekingalpha.com/news/4508742-zebra-technologies-q3-2025-earnings-preview]