Zebra Technologies Announces 1Q 2025 Results

Zebra Technologies announced results for the first quarter ended March 29, 2025.

Net sales were $1,308 million in the first quarter of 2025 compared to $1,175 million in the prior year. Net sales in the Enterprise Visibility & Mobility (EVM) segment were $846 million in the first quarter of 2025 compared to $783 million in the prior year. Asset Intelligence & Tracking (AIT) segment net sales were $462 million in the first quarter of 2025 compared to $392 million in the prior year. Consolidated organic net sales for the first quarter of 2025 increased 11.9% year-over-year, with a 8.6% increase in the EVM segment and a 18.4% increase in the AIT segment.

“We delivered first quarter sales and earnings results above the high end of our outlook, reflecting strong demand, supported by our team’s excellent execution,” said Bill Burns, CEO of Zebra Technologies. “Demand trends have continued to be positive into the second quarter, and we are leaving our full-year outlook unchanged, with the exception of the direct cost of tariffs.

“As we navigate the uncertain global trade environment, we have a strong balance sheet, capital-light business model, and trusted relationships with customers and partners,” added Burns. “Moving forward, we remain confident in delivering sustainable long-term growth and advancing our industry leadership with our innovative solutions that digitize and automate our customers’ workflows.”

First quarter 2025 gross profit was $645 million compared to $563 million in the prior year. Gross margin increased to 49.3% for the first quarter of 2025 compared to 47.9% in the prior year primarily due to volume leverage and business mix. Adjusted gross margin was 49.6% in the first quarter of 2025 compared to 48.1% in the prior year.

Net income for the first quarter of 2025 was $136 million, or $2.62 per diluted share, compared to net income of $115 million, or $2.23 per diluted share, in the prior year. Non-GAAP net income increased to $208 million for the first quarter of 2025, or $4.02 per diluted share, compared to $147 million, or $2.84 per diluted share, for the prior year.

Adjusted EBITDA for the first quarter of 2025 was $292 million, or 22.3% of adjusted net sales, compared to $234 million, or 19.9% of adjusted net sales in the prior year due to higher gross margins and lower operating expense as a percentage of adjusted net sales.

As of March 29, 2025, the company had cash and cash equivalents of $879 million and total debt of $2,183 million.