Zebra Technologies Reports Strong Q4 & FY25 Non-GAAP Results, Raises Guidance, and Boosts Share Buyback by $1B

summarizeSummary

Zebra Technologies announced its Q4 and full-year 2025 results, showing strong non-GAAP growth and a positive 2026 outlook, alongside a significant $1.0 billion increase in its share repurchase authorization.

check_boxKey Events

• Q4 and Full-Year 2025 Financial Results

  The company reported Q4 2025 net sales of $1,475 million, up 10.6% year-over-year, and full-year net sales of $5,396 million, up 8.3%. Non-GAAP diluted EPS increased 8.3% to $4.33 for Q4 and 17.2% to $15.84 for the full year. GAAP net income and diluted EPS declined significantly due to $76 million in exit and restructuring charges and acquisition costs.

• Positive 2026 Financial Outlook

  Zebra Technologies provided an optimistic outlook for 2026, expecting Q1 sales growth between 11% and 15% and full-year sales growth between 9% and 13%. Non-GAAP diluted EPS is projected to be in the range of $4.05 to $4.35 for Q1 and $17.70 to $18.30 for the full year, with free cash flow expected to be at least $900 million.

• Significant Share Repurchase Authorization Increase

  The Board of Directors approved a $1.0 billion increase to the existing share repurchase authorization, bringing the total remaining authorization to more than $1.1 billion. This substantial increase underscores management's confidence in the company's valuation and commitment to shareholder returns.

auto_awesomeAnalysis

Zebra Technologies reported a mixed fourth quarter and full-year 2025, with GAAP net income and diluted EPS declining significantly due to $76 million in exit and restructuring charges and acquisition-related costs. However, the company demonstrated strong operational performance with non-GAAP diluted EPS increasing 8.3% year-over-year for Q4 and 17.2% for the full year. Adjusted EBITDA also saw healthy growth. Management provided a positive outlook for both Q1 and full-year 2026, projecting continued sales growth and non-GAAP EPS increases. Concurrently, the Board of Directors approved a substantial $1.0 billion increase to its existing share repurchase authorization, signaling strong confidence in the company's financial health and commitment to returning capital to shareholders. This significant capital allocation decision, alongside the positive non-GAAP performance and forward guidance, is likely to be viewed favorably by investors, despite the GAAP declines.