Zebra Stock Rises As Strong Retail Demand, Sales Beat Drive Big Quarter, But Tariffs Cloud Full-Year Outlook

Zebra Technologies Corp ZBRA stock gained on Tuesday after it reported financial results for the first quarter. Here's what you need to know.

The mobile computing company reported quarterly sales of $1.31 billion, up by 11.3%, beating analyst estimates of $1.29 billion.

Also Read: Zebra Tech Q4 Earnings: Revenue Surges 32%, CEO Cites Strong Retail Demand

Zebra reported adjusted earnings of $4.02 per share, exceeding analyst estimates of $3.62.

Zebra's two main business segments also saw substantial growth during the period. The Enterprise Visibility & Mobility segment recorded net sales of $846 million, up 8% from the previous year. The Asset Intelligence & Tracking segment recorded net sales of $462 million, up 17.9% from the previous year.

The consolidated adjusted gross margin increased 150 bps to 49.6%, primarily due to volume leverage and business mix. Adjusted EBITDA margin expanded by 240 bps to 22.3%.

The company said it had $879 million in cash and cash equivalents as of March 29.

CEO Bill Burns said demand trends continued to be positive into the second quarter, and the company left its full-year outlook unchanged, except for the direct cost of tariffs. 

Outlook: For the second quarter, Zebra expects sales growth of 4%-7% or $1.25 billion-$1.30 billion versus the $1.28 billion estimate. The company expects adjusted earnings of $3-$3.50 per share versus estimates of $3.52.

The company reiterated fiscal 2025 net sales growth of 3%-7% or $5.13 billion-$5.33 billion versus the $5.37 billion estimate. It expects adjusted earnings of $13.75-$14.75 (prior $14.75-$15.25) per share versus the $15.89 per share estimate.

ZBRA Price Action: Zebra stock is up 6.57% at 259.49 at the last check Tuesday.

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