Zebra Technologies' Q3 revenue rose 22% to $1.61 billion, beating the $1.56 billion consensus, while adjusted EPS of $4.95 beat estimates of $4.90. The company expects Q4 sales growth of 10% to 14% and adjusted EPS of $5.00 to $5.40.
Q3 revenue increased 22% to $1.61 billion, above the $1.56 billion analyst consensus. Adjusted EPS rose to $4.95, beating the $4.90 consensus; reported EPS was $3.43. Zebra Technologies repurchased $75 million of shares during the quarter.
The company said strong demand across segments and regions drove double-digit sales growth, with Elo Touch cited as a key contributor. Gross margin declined due to higher memory component costs and business mix, partially offset by favorable foreign currency. Operating expenses rose mainly because of costs from acquired businesses, including amortization of intangible assets.
Zebra expects Q4 sales growth of 10% to 14% year over year, adjusted EBITDA margin of approximately 22%, and non-GAAP diluted EPS of $5.00 to $5.40. It expects full-year free cash flow of at least $1 billion.
