Zebra Q3 Mixed; Margins Fall, Q4 Outlook Strong

Zebra reported Q3 revenue of $1.32 billion, up 5.2% year-over-year and essentially in line with expectations, while adjusted EPS was $3.88, beating estimates. The company gave an upbeat Q4 guide, forecasting net sales around $1.46 billion (roughly 8–11% growth) and adjusted EPS centered near $4.30, both above street forecasts. Management said steady demand for barcode scanners, mobile computers and automation solutions and diversified manufacturing across China, Vietnam, Malaysia and Mexico helped mitigate trade and tariff headwinds. Offsetting positives, operating margin and free-cash-flow margin declined year-over-year. Zebra is expanding its portfolio through acquisitions such as Elo Touch Solutions and Photoneo and plans a $500 million common stock repurchase program; market reaction to the results was mixed, with reports of a premarket dip and early-session gains.