Description

Zebra Technologies & The Automation Thesis: RFID Expansion, Machine Vision Wins & Margin Inflection Signals!

Zebra Technologies reported its fourth quarter and full year 2025 financial results with several developments that capture both the positive strides and challenging aspects of its operational landscape. For the fourth quarter, Zebra recorded sales of nearly $1.5 billion, marking a 10.6% year-over-year increase, or 2.5% on an organic basis. The adjusted EBITDA margin came in at 22.1%, and the non-GAAP diluted earnings per share stood at $4.33, an 8% improvement over the previous year. Regionally, the company saw strong performance in Asia Pacific and Latin America, while EMEA also returned to growth. In contrast, North America experienced a slight decline due to cycling of strong prior-year comparables. Among business segments, the Connected Frontline grew by 3.6%, with Asset Visibility & Automation up by 1.3%. On the downside, adjusted gross margins decreased by 50 basis points to 48.2%, primarily due to diminished margins in services and software.