AI
← Earnings Calls
01
02
03
04 05 06
Tone
AI
Capex
A1 A2
ZBRA
FY2025 Q4
Improving
Zebra Technologies Corporation earnings call
Buzzberg read
AI suite drives pay pilots and expected scale deployments this year
Zebra reported strong Q4 results, beating guidance, and provided an upbeat 2026 outlook driven by a robust pipeline and growth in RFID, machine vision, and manufacturing, despite headwinds from memory price increases and tariffs. Management highlighted the successful integration of Elo Touch and PhotoNeo, and emphasized its strategic pivot towards AI and automation. Q4 2025 revenue was $1.5 billion (+10.6% y/y), and non-GAAP EPS of $4.33 (+8% y/y), both beating outlook.
Buzzberg read AI suite drives pay pilots and expected scale deployments this year Zebra reported strong Q4 results, beating guidance, and provided an upbeat 2026 outlook driven by a robust pipeline and growth in RFID, machine vision, and manufacturing, despite headwinds from memory price increases and tariffs. Management highlighted the successful integration of Elo Touch and PhotoNeo, and emphasized its strategic pivot towards AI and automation. Q4 2025 revenue was $1.5 billion (+10.6% y/y), and non-GAAP EPS of $4.33 (+8% y/y), both beating outlook. Read full analysisCollapse analysis
Zebra reported strong Q4 results, beating guidance, and provided an upbeat 2026 outlook driven by a robust pipeline and growth in RFID, machine vision, and manufacturing, despite headwinds from memory price increases and tariffs. Management highlighted the successful integration of Elo Touch and PhotoNeo, and emphasized its strategic pivot towards AI and automation. Q4 2025 revenue was $1.5 billion (+10.6% y/y), and non-GAAP EPS of $4.33 (+8% y/y), both beating outlook.
- Full-year sales growth guidance for 2026 is 9-13%, with Q1 2026 sales growth guided to 11-15%.
- Management confirmed a ~2-point gross margin headwind from memory price increases starting in Q2 2026, which they plan to fully offset with price hikes.
- The company reported strong growth in Asia-Pac and Latin America, with EMEA returning to growth, while North America faced tough comparisons.
Revenue$1.475BReported
EPS$4.33Reported
Gross margin44.61%Reported
Operating margin15.05%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Margins
Memory price increases are fully mitigated within 2026 guidance
Demand
Machine vision expected to return to growth in 2026
Show 3 more callouts
Demand
RFID adoption momentum broad-based across verticals
Guidance
Q1 sales growth guidance of 11-15% includes 10 points from acquisitions and FX
Buybacks
Share repurchases to continue aggressively, targeting 50% of FCF
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $1.475B | Reported |
| EPS | $4.33 | Reported |
| Gross margin | 44.61% | Reported |
| Operating margin | 15.05% | Reported |
| Free cash flow | $0.327B | Reported |
| Capex | $0.03B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $17.70–$18.30 | $18.00 | Guided |
| EPS | FY2026 Q1 | $4.05–$4.35 | $4.20 | Guided |
| Free cash flow | FY2026 | $0.9B | $0.9B | Guided |
AI, capex & demand read
Management read
Confident
Management expressed confidence in growth momentum, citing strong pipeline, successful mitigation of tariffs and memory headwinds, and progress in strategic areas like AI and RFID.
Management AI read
Management is positioning Zebra as a leading AI solutions provider for the frontline, with a portfolio including AI enablers, blueprints, and a Zebra Companion agent. They note pay pilots are underway with scale deployments expected in 2026, and customers are adopting AI-capable devices, potentially driving upgrade cycles and higher ASPs.
Investment and capacity
Capex not explicitly discussed in the call, but management highlighted investments in AI, RFID, and machine vision, along with productivity initiatives. Free cash flow guidance of at least $900 million supports continued investment and capital returns.
all 4 named companies below
Companiesreturns since call
Customers
Customers
Bill Burns
Zebra won a machine vision contract with a major parcel delivery company, likely a competitor to Amazon Logistics, indicating continued demand in this segment.
Evidence
“A large European parcel delivery company has selected Zebra's machine vision platform”
Partners
Partners
Bill Burns
Zebra is collaborating with Google on its operating system to ensure AI model support, a sign of an ongoing partnership.
Evidence
“working with our partners in Qualcomm and certainly Google on the OS to make sure that they can support AI models on the device”
Supply chain
Supply chain
Nathan Winters
Zebra is facing a ~2-point gross margin headwind from memory price increases starting Q2, which it plans to fully offset through price increases and supply chain actions. — Indicates significant memory supply constraint and pricing power in the industry, impacting companies like Micron, and shows Zebra's confidence in passing costs to customers.
Evidence
“We are currently facing industry-wide price increases for memory components beginning in Q2. Our full year guide reflects us fully mitigating this approximately two-point headwind”
External signals
Supply-chain alpha · 2returns since call
Zebra is facing a ~2-point gross margin headwind from memory price increases starting Q2, which it plans to fully offset through price increases and supply chain actions.
Zebra management notes that discussions with large T&L customers for multi-year refresh cycles are progressing, with deals likely beginning in 2027, signaling a potential upgrade cycle ahead.
Evidence
“we would see, you know, about the same level as we saw in 25, but this is clearly an opportunity out there for us.”
Methodology & coverage
Management-only analysis. All 4 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.