Zebra Technologies Corporation stock research
FY2025 Q3
Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Sep 27, 2025
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved slightly from the prior quarter, while cost of revenue increased year over year, resulting in a gross margin that was higher than the prior quarter but lower than the same quarter last year.
Gross margin takeaway
Quarter ended Sep 27, 2025 · FY2025 Q3
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved slightly from the prior quarter, while cost of revenue increased year over year, resulting in a gross margin that was higher than the prior quarter but lower than the same quarter last year.
- The gross margin improved sequentially as gross profit grew faster than cost of revenue relative to revenue. The year-over-year decline in gross margin was driven by a larger increase in cost of revenue compared to gross profit.
- Compared to the prior quarter, gross margin strengthened. Compared to the same quarter last year, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.0%
Gross profit
$634.0M
Revenue
$1.3B
Cost of revenue
$686.0M
Quarter-over-quarter change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Sep 27, 2025 | $1.3B | $634.0M | $686.0M | 48.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2025
+0.4 pts
Year-over-year change
Sep 28, 2024
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially as gross profit grew faster than cost of revenue relative to revenue. The year-over-year decline in gross margin was driven by a larger increase in cost of revenue compared to gross profit.
Compared to the prior quarter, gross margin strengthened. Compared to the same quarter last year, gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as its year-over-year increase outpaced gross profit growth.