Zebra Technologies Corporation stock research
FY2025 Q2
Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Jun 28, 2025
Revenue was stable compared to the prior quarter, while gross profit decreased and cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter a year ago, revenue was higher, gross profit improved, and cost of revenue increased, though gross margin weakened slightly.
Gross margin takeaway
Quarter ended Jun 28, 2025 · FY2025 Q2
Revenue was stable compared to the prior quarter, while gross profit decreased and cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter a year ago, revenue was higher, gross profit improved, and cost of revenue increased, though gross margin weakened slightly.
- The strongest observable margin driver was the relative increase in cost of revenue compared to revenue, which compressed gross profit and narrowed the gross margin from the prior quarter.
- Sequentially, gross margin declined from the prior quarter, as cost of revenue grew while revenue remained level. Year-over-year, gross margin was lower than the same quarter last year, despite higher revenue and gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.6%
Gross profit
$616.0M
Revenue
$1.3B
Cost of revenue
$677.0M
Quarter-over-quarter change
-1.7 pts
Year-over-year change
-0.8 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 |
|---|---|---|---|---|
| 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% |
| Jun 28, 2025 | $1.3B | $616.0M | $677.0M | 47.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2025
-1.7 pts
Year-over-year change
Jun 29, 2024
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the relative increase in cost of revenue compared to revenue, which compressed gross profit and narrowed the gross margin from the prior quarter.
Sequentially, gross margin declined from the prior quarter, as cost of revenue grew while revenue remained level. Year-over-year, gross margin was lower than the same quarter last year, despite higher revenue and gross profit.
Monitor the trajectory of cost of revenue relative to revenue, as its increase has outpaced revenue growth and pressured margins.