Strong fourth-quarter sales growth, disciplined capital returns, and strategic portfolio refinement position Zebra Technologies for sustained momentum in 2026.
ZEBRA TECHNOLOGIES DELIVERS DOUBLE-DIGIT GROWTH
Zebra Technologies (Zebra) has announced its financial results for Q4 2025, delivering double-digit sales growth and signalling continued strategic momentum heading into 2026.
Headquartered in Lincolnshire, Illinois, the company recorded fourth-quarter net sales of $1.475 billion, representing a year-on-year increase of 10.6 percent.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rose 10.5 percent to $326 million, while non-Generally Accepted Accounting Principles (GAAP) diluted earnings per share increased 8.3 percent — reflecting disciplined execution across the business.
Net income for the quarter, however, was $70 million compared to $163 million in the year prior.
The decline is thought to be primarily influenced by $76 million in exit and restructuring charges related to initiatives aimed at enhancing operational focus and productivity.
Bill Burns, CEO, said the company delivered a strong finish to the year as the team continued advancing strategic priorities aimed at strengthening Zebra’s leadership in digitizing and automating workflows.
He noted how the company entered 2026 with a healthy backlog and pipeline, momentum from its acquisition of Elo Touch Solutions (Elo Touch), and a sharper focus on its highest-growth opportunities.
Burns also highlighted the company’s progress in returning capital to shareholders, including the Board of Directors’ approval of an additional $1 billion share repurchase authorization.
He added that Zebra remains well-positioned to deliver innovative solutions for customers and drive long-term shareholder value.
PROFITS ALL ROUND
Segment performance reflected steady gains across both divisions, underlining the resilience of Zebra’s diversified portfolio.
Net sales in the Connected Frontline segment reached $854 million – up from $726 million in the prior year – while the Asset Visibility and Automation segment generated $621 million compared to $608 million in 2024.
Consolidated organic net sales increased 2.5 percent year-on-year, driven by 3.6 percent growth in Connected Frontline and 1.3 percent growth in Asset Visibility and Automation.
Gross profit for the fourth quarter totalled $698 million, up from $648 million in the previous year, while gross margin stood at 47.3 percent, compared to 48.6 percent in 2024, reflecting a lower services and software margin.
Operating expenses increased to $559 million from $423 million, primarily due to exit and restructuring charges, including previously announced plans to exit the robotics business, as well as costs associated with the acquisition of Elo Touch.
Non-GAAP net income increased to $219 million compared to $208 million in the prior year, while adjusted EBITDA margin remained stable at 22.1 percent of adjusted net sales, supported by improved operating expense leverage.
BALANCE SHEET AND CASH FLOW
As of 31 December 2025, the company held cash and cash equivalents of $125 million and total debt of $2.511 billion.
For the full year, net cash provided by operating activities reached $917 million while capital expenditures totalled $86 million – resulting in free cash flow of $831 million.
During the year, Zebra completed the acquisitions of Elo Touch and Photoneo for $1.365 billion, repurchased $587 million of shares under its existing authorization, and made net debt payments of $328 million.
In addition, the Board of Directors approved a further $1 billion common stock repurchase authorization, augmenting the previous $1 billion programme.
During the fourth quarter alone, the company repurchased $303 million in shares as part of its previously announced 12-month $500 million commitment.
2026 OUTLOOK
For the first quarter of 2026, Zebra expects sales growth of between 11 percent and 15 percent year-on-year, including an approximately 10 percentage point favourable impact from acquisitions and foreign currency translation.
Adjusted EBITDA margin is projected to be between approximately 21 percent and 22 percent, with non-GAAP diluted earnings per share expected in the range of $4.05 to $4.35.
