Question · Q3 2025
Marianne (for Meta Marshall) asked about the impact of pricing actions related to tariffs on customer demand. She also requested a breakdown of how the OBBBA tax bill is expected to affect Zebra's effective tax rate and cash taxes going forward.
Answer
CFO Nathan Winters stated that pricing actions yielded a nice benefit, increasing the expected annual benefit to $60 million (or one point of growth), and had no dramatic impact on demand, as pricing was in line with competitors. For the OBBBA tax bill, he explained an expected $50-$60 million reduction in cash taxes this year due to R&D amortization, with over $200 million in incremental cash benefit over the next two years. The effective tax rate is expected to increase to 18% due to new permanent rate effects and income shifts, but with a larger benefit from lower cash taxes.