Preliminary brief— based on press release only. Full analysis including management tone and Q&A will be added when the transcript is available.

ZBRA · Q2 2025 Earnings

Zebra Technologies

Reported August 5, 2025

30-second summary

Revenue grew 6.2% YoY to $1.29B with adjusted EBITDA margin at 20.6% and non-GAAP EPS of $3.61. Management raised both the full-year sales growth range (to 5–7%) and EBITDA margin range (to 21–22%), citing resilient customer capex and a tariff impact now running at ~$30M for FY2025 net of mitigation (annualized run-rate ~$40M) — less than half the prior expectation — thanks to lower China import rates. The bigger story is the ELO acquisition, framed as an $8B TAM expansion into consumer-facing fixed screens, self-service kiosks, and POS — a strategic pivot beyond frontline mobility.

Headline numbers

EPS

Q2 FY2025

$3.61

Revenue

Q2 FY2025

$1.29B

+6.2% YoY

Gross margin

Q2 FY2025

47.6%

Operating margin

Q2 FY2025

14.2%

Key financials

Q2 FY2025

Metric	Q2 FY2025	YoY
Revenue	$1.29B	+6.2%
EPS	$3.61	—
Gross margin	47.6%	—
Operating margin	14.2%	—

Guidance

Prior quarter data unavailable — comparison not possible.

Product revenue

Q2 FY2025

Segment	Q2 FY2025	YoY
Enterprise Visibility & Mobility (EVM)	$0.875B	+6.7%
Asset Intelligence & Tracking (AIT)	$0.418B	+5.3%

Management tone

Tariff drag halved on better China rate clarity. The most material shift this quarter is on tariff economics: FY2025 gross profit impact is now ~$30M net of mitigation, with the annualized run-rate at ~$40M — explicitly characterized as "less than half of our previous expectation, primarily due to a lower rate on China imports." This is the proximate justification for raising both the sales and margin guides, and it reframes the trade-policy overhang from a structural threat to a manageable line item.

ELO repositions the portfolio beyond mobility. Management frames the $1.3B ELO acquisition as an $8B TAM expansion with $25M of run-rate EBITDA synergies by year three, into "self-serve checkout, kiosks and quick-serve restaurants…fixed touchscreens and in payment and point of sale." This is a strategic departure from Zebra's frontline-worker mobility identity into consumer-facing and fixed-installation hardware. The Windows-to-Android convergence pitch is the connective tissue, but investors should read this as a deliberate widening of the swim lane and a signal that organic growth in the core was not deemed sufficient.

Recurring themes management leaned on this quarter:

Tariff mitigation improving faster than expected; rate clarity reducing uncertaintyRegional divergence: North America/APAC strong, EMEA softening with mixed performanceVertical strength in T&L and retail/e-commerce; manufacturing and healthcare facing comps pressurePortfolio expansion via ELO acquisition into consumer-facing and self-service automationAI and Android platform convergence driving new adjacencies across verticalsDevice refresh cycle visibility emerging; multi-year upgrade opportunity building

Risks management surfaced:

Uncertain trade policy environment requiring continuous monitoring and supply chain reconfigurationEMEA softness and geopolitical concerns impacting customer confidence and spendingManufacturing sector weakness, particularly in EV-related applicationsMobile computing price concessions limiting full realization of list price increasesMacro uncertainty and customer capex spending variability in Q4 despite year-end seasonal patterns

What to watch into next quarter

Whether Q3 organic growth lands inside the 2–6% guide range; the wide band signals real Q4 capex visibility risk, and Q3 deceleration from the 6.3% Q2 organic print would matter.

EMEA trajectory — management flagged softening that worsened through Q2; watch for further deterioration that could pressure the FY 5–7% growth floor.

Mobile computing pricing dynamics — whether concessions widen or stabilize as the tariff pass-through cycle matures.

ELO close timing, financing structure, and any updated synergy or accretion disclosure; $1.3B is a sizable check relative to Zebra's balance sheet.

Whether the tariff FY2025 net impact holds at ~$30M (and annualized at ~$40M) or moves again — management explicitly tied the assumption to "current effective rates remain in place."

Q4 customer year-end spending patterns — management said "we don't have visibility yet"; an early read on November/December order pacing will be the FY guide stress test.

Sources

Zebra Technologies Q2 2025 press release (SEC EDGAR): https://www.sec.gov/Archives/edgar/data/877212/000087721225000129/zbraex99120250628.htm
Zebra Technologies Q2 2025 earnings conference call transcript, August 5, 2025 (prepared remarks and Q&A).

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