WS Investor
12 May 2026, 17:16
Zebra Technologies Jumps 15% as Broad-Based Growth and Raised Guidance Impress
May 12, 2026 | NASDAQ: ZBRA
Zebra Technologies is the standout performer among today's earnings reporters, surging 15% after delivering a clean beat on all key metrics and raising its full-year outlook — a combination that the market is clearly rewarding generously on an otherwise difficult day.
Net sales for the first quarter reached $1,495 million, up 14.3% year-on-year. Organic growth of 4.3% underpins the headline figure, with both segments contributing — Connected Frontline up 3.8% organically and Asset Visibility & Automation up 4.8%. Adjusted EBITDA grew 18.8% to $347 million, with margin expanding 90 basis points to 23.2%. Non-GAAP EPS jumped 18.2% to $4.75. Manufacturing was called out as the strongest end market, with growth broad-based across geographies.
GAAP net income was essentially flat at $135 million as higher operating expenses from acquired businesses and intangible amortization offset the revenue gains — but on an adjusted basis the business is clearly accelerating. The Elo Touch acquisition is already contributing profitable growth with early synergies emerging.
Cash generation was solid, with free cash flow of $163 million in the quarter. The company also repurchased $300 million of stock — the second consecutive quarter at that level — signaling strong balance sheet confidence.
The guidance raise is what likely drove the outsized move. Full-year non-GAAP EPS is now expected in the range of $18.30 to $18.70, with sales growth of 10% to 14% and free cash flow exceeding $900 million. CEO Bill Burns pointed to e-commerce, automation, and Physical AI as accelerating tailwinds that position Zebra well for continued growth.
In a session where macro fears dominate, Zebra offered exactly what investors wanted — execution, momentum, and a higher bar for the year ahead.
May 12, 2026 | NASDAQ: ZBRA
Zebra Technologies is the standout performer among today's earnings reporters, surging 15% after delivering a clean beat on all key metrics and raising its full-year outlook — a combination that the market is clearly rewarding generously on an otherwise difficult day.
Net sales for the first quarter reached $1,495 million, up 14.3% year-on-year. Organic growth of 4.3% underpins the headline figure, with both segments contributing — Connected Frontline up 3.8% organically and Asset Visibility & Automation up 4.8%. Adjusted EBITDA grew 18.8% to $347 million, with margin expanding 90 basis points to 23.2%. Non-GAAP EPS jumped 18.2% to $4.75. Manufacturing was called out as the strongest end market, with growth broad-based across geographies.
GAAP net income was essentially flat at $135 million as higher operating expenses from acquired businesses and intangible amortization offset the revenue gains — but on an adjusted basis the business is clearly accelerating. The Elo Touch acquisition is already contributing profitable growth with early synergies emerging.
Cash generation was solid, with free cash flow of $163 million in the quarter. The company also repurchased $300 million of stock — the second consecutive quarter at that level — signaling strong balance sheet confidence.
The guidance raise is what likely drove the outsized move. Full-year non-GAAP EPS is now expected in the range of $18.30 to $18.70, with sales growth of 10% to 14% and free cash flow exceeding $900 million. CEO Bill Burns pointed to e-commerce, automation, and Physical AI as accelerating tailwinds that position Zebra well for continued growth.
In a session where macro fears dominate, Zebra offered exactly what investors wanted — execution, momentum, and a higher bar for the year ahead.
