Zebra Technologies Corporation stock research
FY2025 Q1
Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Mar 29, 2025
Revenue was stable sequentially, with gross margin improving due to lower cost of revenue, and year over year, revenue and gross profit grew, with gross margin also improving as cost of revenue increased less than proportionally. The filing provides standard risk factor and management discussion sections but does not specify margin drivers.
Gross margin takeaway
Quarter ended Mar 29, 2025 · FY2025 Q1
Revenue was stable sequentially, with gross margin improving due to lower cost of revenue, and year over year, revenue and gross profit grew, with gross margin also improving as cost of revenue increased less than proportionally. The filing provides standard risk factor and management discussion sections but does not specify margin drivers.
- The strongest observable driver was the change in cost of revenue relative to revenue, which decreased sequentially while revenue was stable, and increased less than revenue year over year.
- Compared to the prior quarter, revenue was stable, gross profit was slightly lower, cost of revenue was lower, and gross margin improved. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.3%
Gross profit
$645.0M
Revenue
$1.3B
Cost of revenue
$663.0M
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+1.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 29, 2025 | $1.3B | $645.0M | $663.0M | 49.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.7 pts
Year-over-year change
Mar 30, 2024
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the change in cost of revenue relative to revenue, which decreased sequentially while revenue was stable, and increased less than revenue year over year.
Compared to the prior quarter, revenue was stable, gross profit was slightly lower, cost of revenue was lower, and gross margin improved. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue to assess the sustainability of the margin improvement.