Zebra Technologies Corporation stock research
FY2025 Q4
Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose. However, gross margin weakened as cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose. However, gross margin weakened as cost of revenue grew at a faster pace than revenue.
- The strongest observable driver of the margin change was the increase in cost of revenue, which outpaced the growth in revenue. This resulted in a lower gross margin despite higher absolute gross profit.
- Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin also declined. Revenue was higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.3%
Gross profit
$698.0M
Revenue
$1.5B
Cost of revenue
$777.0M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-1.3 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 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% |
| Dec 31, 2025 | $1.5B | $698.0M | $777.0M | 47.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2025
-0.7 pts
Year-over-year change
Dec 31, 2024
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin change was the increase in cost of revenue, which outpaced the growth in revenue. This resulted in a lower gross margin despite higher absolute gross profit.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin also declined. Revenue was higher in both comparisons.
Monitor the trend in cost of revenue relative to revenue, as the filing includes a Management Discussion and Analysis section that may provide additional context on results of operations.