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LINCOLNSHIRE, Ill. - On Tuesday, Zebra Technologies Corporation (NASDAQ:ZBRA) reported second-quarter earnings that exceeded analyst expectations, and raised its full-year outlook and announced a significant acquisition.
The company's shares were up 8.71% in pre-market trading following the announcement.
The digitizing and workflow automation company posted adjusted earnings per share of $3.61 for the second quarter, significantly beating the analyst consensus of $3.33. Revenue came in at $1.29 billion, matching analyst estimates and representing a 6.2% increase YoY. The company's organic net sales grew 6.3% compared to the same period last year.
"Solid demand, excellent execution by our team and lower-than-expected tariffs enabled us to deliver second quarter results that exceeded our expectations," said Bill Burns, Chief Executive Officer of Zebra Technologies.
The strong performance prompted Zebra to raise its full-year 2025 outlook, now expecting sales growth between 5% and 7%, up from previous guidance. The company also issued third-quarter EPS guidance of $3.60 to $3.80, above the analyst consensus of $3.44.
Zebra's Enterprise Visibility & Mobility segment generated $875 million in sales, up from $820 million a year earlier, while the Asset Intelligence & Tracking segment contributed $418 million, compared to $397 million in the prior year.
Adjusted EBITDA for the quarter increased to $267 million, representing 20.6% of adjusted net sales, slightly up from 20.5% in the prior year. The company generated $288 million in free cash flow during the first half of 2025.
In a separate announcement, Zebra revealed plans to acquire Elo Touch Solutions for $1.3 billion, a move expected to close later in 2025. The acquisition is not included in the company's current outlook.
"We are focused on driving shareholder value and advancing our industry leadership with our innovative solutions that digitize and automate our customers' workflows," Burns added.