Zebra Technologies Corp. reported fourth‑quarter 2025 results on February 12, 2026, showing net sales of $1.475 billion, up 10.6% from $1.395 billion in Q4 2024. Net income fell to $70 million from $163 million a year earlier, while GAAP diluted earnings per share dropped to $1.39 from $3.14. Non‑GAAP diluted EPS was $4.33, just $0.01 below the consensus estimate of $4.34.
Revenue beat the consensus estimate of $1.460 billion, driven by a 10.6% year‑over‑year increase in core hardware and software segments and a 3.6% organic growth in the newly formed Connected Frontline segment. The company also reported a 1.3% organic rise in its Asset Visibility & Automation segment, offsetting a 1% decline in North America sales.
The decline in GAAP net income was largely attributable to $76 million in exit and restructuring charges related to the divestiture of the robotics business and productivity initiatives, as well as lower service and software margins. Operating margin contracted to 9.4% from 16.9% in Q4 2024, reflecting pricing pressure and the impact of the restructuring.
Non‑GAAP diluted EPS of $4.33 was essentially in line with the consensus estimate of $4.34, a narrow miss of $0.01. The company’s adjusted EBITDA of $326 million represented a 22.1% margin, unchanged from the prior year, indicating that cost controls and pricing power offset the impact of the restructuring charges.
For the first quarter of 2026, Zebra guided sales growth of 11% to 15% and an adjusted EBITDA margin of 21% to 22%. Full‑year 2026 guidance includes revenue growth of 9% to 13% and an adjusted EBITDA margin of approximately 22%, with non‑GAAP diluted EPS projected at $17.70 to $18.30, beating analyst estimates of $17.53. The guidance signals management confidence in continued demand for its AI‑driven solutions and the benefits of recent acquisitions such as Elo Touch.
The company also announced a $1 billion share‑repurchase authorization, increasing its existing program and bringing total remaining authorization to over $1.1 billion. CEO Bill Burns said, 'We delivered a strong finish to the year as our team continued to advance the strategic priorities that strengthen Zebra's leadership in digitizing and automating workflows.' He added, 'We entered 2026 with a healthy backlog and pipeline, momentum from the Elo Touch acquisition, and a sharper focus on our highest‑growth opportunities.' Burns also noted, 'We are currently facing industry‑wide price increases for memory components beginning in Q2.'
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.