Zebra Technologies to Report Q3 Earnings: What's in the Offing?

Zebra Technologies (ZBRA) is scheduled to release its third-quarter 2025 results on October 29, with consensus estimates forecasting revenues of $1.31 billion, a 4.4% year-over-year increase, and adjusted earnings per share of $3.75, up 7.5%. Expected growth is attributed to robust demand in its Enterprise Visibility & Mobility and Asset Intelligence & Tracking segments, alongside benefits from strategic acquisitions like Photoneo. However, the company faces potential margin pressure from higher raw material costs and adverse foreign exchange impacts due to a strong U.S. dollar, leading Zacks' model not to conclusively predict an earnings beat despite ZBRA's historical outperformance.

Analysis

Zebra Technologies (ZBRA) is scheduled to release its Q3 2025 results on October 29, with consensus estimates forecasting revenues of $1.31 billion, a 4.4% year-over-year increase, and adjusted earnings per share of $3.75, representing 7.5% growth. The company has a strong historical earnings surprise record, outperforming consensus estimates in the past four quarters by an average of 7.4%, including a 9.1% beat in the last reported quarter.

Expected top-line growth is primarily driven by anticipated strong performance in key segments; the Enterprise Visibility & Mobility segment is projected to grow 5% to $887 million, fueled by demand for mobile computing and data capture solutions, alongside retail software wins. The Asset Intelligence and Tracking segment is also expected to contribute with 3.9% growth to $426 million, supported by printing and RFID product demand, further bolstered by strategic acquisitions such as Photoneo in March 2025.

However, ZBRA faces potential bottom-line pressures from increased raw material costs, which are expected to hurt profitability in the upcoming quarter. Additionally, a stronger U.S. dollar is likely to create foreign exchange headwinds, negatively impacting its extensive overseas business operations. These factors suggest a cautious outlook on margin performance.

Notably, despite ZBRA's impressive earnings surprise history, Zacks' proprietary model does not conclusively predict an earnings beat for this quarter, citing a 0.00% Earnings ESP and a Zacks Rank #3 (Hold). This indicates that while growth is expected, the magnitude of outperformance seen previously might be challenged by the identified cost and FX pressures, leading to a mixed sentiment surrounding the upcoming report.

Key Decisions for Investors

• Monitor ZBRA's Q3 2025 earnings report closely for actual revenue and EPS figures, paying particular attention to segment-level performance and the impact of raw material costs and foreign exchange on margins.
• Evaluate the company's forward guidance for Q4 and full-year 2025, specifically for insights into how management plans to mitigate cost pressures and currency headwinds.
• Consider the implications of Zacks' neutral earnings beat prediction against ZBRA's strong historical outperformance, as this divergence could lead to increased stock volatility post-earnings.