Zebra Technologies Corporation stock research
FY2024 Q4
Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Dec 31, 2024
Revenue was stable sequentially, while gross profit rose and cost of revenue increased. Gross margin edged lower quarter over quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue was stable sequentially, while gross profit rose and cost of revenue increased. Gross margin edged lower quarter over quarter but improved compared to the same quarter last year.
- The primary observable margin driver is gross profit growing faster than revenue on a year-over-year basis, which lifted gross margin. The sequential weakening, however, suggests cost of revenue rose slightly more than revenue.
- Compared to the prior quarter, gross margin weakened slightly as revenue was flat and cost of revenue increased. Versus the same quarter last year, gross margin improved notably, with gross profit and revenue both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.6%
Gross profit
$648.0M
Revenue
$1.3B
Cost of revenue
$686.0M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+4.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 30, 2024 | $1.2B | $563.0M | $612.0M | 47.9% |
| Jun 29, 2024 | $1.2B | $589.0M | $628.0M | 48.4% |
| Sep 28, 2024 | $1.3B | $613.0M | $642.0M | 48.8% |
| Dec 31, 2024 | $1.3B | $648.0M | $686.0M | 48.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2024
-0.3 pts
Year-over-year change
Dec 31, 2023
+4.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable margin driver is gross profit growing faster than revenue on a year-over-year basis, which lifted gross margin. The sequential weakening, however, suggests cost of revenue rose slightly more than revenue.
Compared to the prior quarter, gross margin weakened slightly as revenue was flat and cost of revenue increased. Versus the same quarter last year, gross margin improved notably, with gross profit and revenue both higher.
Monitor whether cost of revenue growth outpaces revenue growth in upcoming quarters, as this pressured gross margin sequentially.