Zebra Technologies Cuts 2025 Outlook Amid Tariffs

Zebra Technologies reported strong first-quarter 2025 results, with adjusted earnings per share of $4.02—up 41.5% from the prior year—and revenue rising 11.3% to $1.31 billion, led by growth in its Enterprise Visibility & Mobility and Asset Intelligence & Tracking segments. Despite this performance, the company projects a $25–$30 million profit impact from increased U.S. tariffs in the second quarter and has raised its annual tariff cost estimate to $70 million. Consequently, Zebra lowered its full-year adjusted EPS guidance to a midpoint of $14.25, representing a 5% decrease from previous forecasts. The company forecasts second-quarter revenue in line with analyst expectations but anticipates a lower profit margin due to ongoing tariff pressures. Zebra's stock initially rose on the results but remains down 37% year-to-date amid trade and cost headwinds. Management remains cautious about near-term growth given these external challenges.