Brad Hewitt

Burns said growth is truly broad-based across regions, verticals, and segments. Manufacturing turning from laggard to contributor with double-digit machine vision growth. Elo demand strong. Trade show conversations positive across NRF, logistics, and healthcare. Would be at top end of outlook except for memory constraints. Customer investments continuing across all verticals.

Winters confirmed channel inventories in good shape, similar to year-ago levels measured by days on hand. Some quarter-to-quarter variability expected but no material full-year changes embedded in guide.

Burns said tariffs have fully flowed through customer supply chains and are no longer a topic in conversations. Customers have raised prices where needed. Memory is now the bigger supply-side challenge. No one holding back projects due to tariffs.

Winters said $500M is the commitment spread over next 4 quarters. Will be dynamic, taking advantage of stock volatility. Open market preferred over ASR for better timing control. Committed now given strong balance sheet profile exiting the year at current leverage levels.

Winters attributed lower incrementals to typical Q4 large deal mix, which carries lower margins. Nothing unusual in the timing or margin profile to call out.

Burns said near-term focus is integrating Elo. Capital allocation priorities unchanged: organic growth first, then strategic M&A, then shareholder returns. Already returned $250M via buybacks YTD. Will continue looking for strategic M&A but Elo integration is the priority.

Winters said Elo's historical growth profile overlaps Zebra's long-term trajectory. $25M synergy target has cost levers (real estate, consulting, supply base) and go-to-market levers (international expansion, cross-selling). Revenue synergies could push toward top end of 5-7% framework.

Winters confirmed buyback pace is higher than normal YTD at $200M to capitalize on volatility. Expects to remain active for the balance of the year.

Winters detailed: 140% China tariff, 10% other Asia, but electronics exemption covers most mobile computing (~2/3 of China imports). USMCA exemption for Mexico production. Guide assumes current rates with no changes.

Winters attributed the Q4 dip to timing of repair volumes. Expects continued margin expansion in services/software but at a slower pace than the last four years.

Winters explained the $20M tariff headwind depresses first-half margins, with substantial sequential improvement expected Q2-to-Q3 and full mitigation by Q4.

CEO attributed IPS strength to packaging and precision ag growth plus the removal of polymer processing and automotive drag. CFO framed the 3% organic growth as the underlying run rate that was previously masked by the drag from weaker end markets.

CEO emphasized through-cycle thinking, higher than mid-single-digit in up-cycle years like now, but the business will inevitably have down periods. Current strong performance is embedded in the guidance.

CFO explained sequential backlog decline as normal seasonality driven by holiday schedules, emphasizing the year-over-year comparison (up 5%) as the more meaningful metric.

CFO confirmed normal seasonal pattern expected with Q1 as lowest quarter building sequentially through the year. CEO added minor Chinese New Year timing impact shifting from Q1 to Q2.

CFO explained Q4 guidance implies modest sequential uptick from Q3 but tougher year-over-year comps in systems businesses (plastics), not a true deceleration in underlying momentum.

CEO confirmed 24-25% ATS EBITDA margin is reasonable at current revenue levels with incrementals slightly better than company average, but cautioned against extrapolating higher given 14-15% of revenue invested in R&D.

Declined specific margin guidance due to tariff dynamics. Directionally: New Fortive low-single+ to mid-single core growth unchanged; PT now down low-single for full year.

FAL led by ServiceChannel with strong NDR and enterprise wins. Gordian mostly on track with some government hesitancy. Procurement was double-digits at Gordian in Q1.

CFO confirmed sequential revenue build consistent with historical averages at 24% in Q1. 3-day shipping math creates H1 comp headwinds and H2 tailwinds. Underlying demand patterns unchanged throughout the year.

CFO confirmed 2026 pricing expected near 200 basis points, at high end of historical 100-200bps range. Mix of carryover from 2025 pricing actions plus regular incremental price increases.