NASDAQ:ZBRA

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Zebra Technologies Plunges 12% as Margin Compression Overshadows Strong Growth and Raised Outlook

Zebra Technologies (NASDAQ: ZBRA) shares fell about 12% despite reporting strong third-quarter 2026 revenue growth, higher earnings and an increased full-year outlook.

Third-quarter sales rose 22.3% year over year to $1.61 billion, with organic sales growth of 11.3%. Connected Frontline sales increased to $949 million from $705 million, while Asset Visibility & Automation revenue rose to $665 million from $615 million.

Earnings also improved substantially. Net income increased 62% to $164 million, while GAAP EPS rose to $3.43 from $1.97. Non-GAAP EPS increased 27.6% to $4.95, and adjusted EBITDA climbed 22.5% to $349 million.

The main weak point was profitability at the gross-margin level. Reported gross margin declined 230 basis points to 45.7%, while adjusted gross margin fell 220 basis points to 46.0%. Zebra attributed the compression primarily to higher memory-component costs and business mix.

Adjusted EBITDA margin was unchanged at 21.6%, indicating that operating leverage and cost management offset some of the gross-margin pressure. Operating expenses nevertheless increased, partly because of costs associated with acquired businesses.

For the fourth quarter, Zebra expects sales growth of 10%-14%, adjusted EBITDA margin of about 22% and non-GAAP EPS of $5.00-$5.40. Full-year free cash flow is expected to be at least $1 billion.

The 12% selloff appears to reflect concern over margin quality rather than demand. Revenue, organic growth and earnings remained strong, and management raised its outlook, but the sharp decline in gross margin suggests rising component costs and mix pressures could constrain incremental profitability. The market reaction may also indicate that investors were expecting a stronger margin trajectory given Zebra’s double-digit growth and elevated automation demand.
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Author
The Investor 11-03-26
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.
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Author
WS Investor 05-12-26
Zebra Technologies announced it will exit its robotics automation solutions business as part of a resource realignment. The company expects up to $80 million in one-time pre-tax charges in the fourth quarter of fiscal 2025, including around $60 million in non-cash asset impairment charges, while targeting at least $20 million in net annualized pre-tax cost savings.
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Author
European Investor 12-15-25
Zebra Technologies Posts 5% Q3 2025 Sales Growth, Lifts Outlook with Strong Cash Flow and Buybacks

Zebra Technologies (NASDAQ: ZBRA) reported third-quarter 2025 net sales of $1.32 billion, up 5.2% year-over-year, driven by strength in both business segments. Enterprise Visibility & Mobility (EVM) sales rose 2% to $865 million, while Asset Intelligence & Tracking (AIT) jumped 10.6% to $455 million.

Non-GAAP diluted EPS climbed 11% to $3.88, and adjusted EBITDA grew 6% to $285 million, reflecting strong demand, tariff savings, and operating efficiency. GAAP net income was $101 million ($1.97 per share) versus $137 million ($2.64) a year ago.

CEO Bill Burns credited the performance to solid execution and lower-than-expected tariffs, noting that the company’s recent acquisition of Elo Touch Solutions will accelerate its connected frontline strategy.

Zebra ended the quarter with $1.05 billion in cash and $2.18 billion in debt. For the first nine months of 2025, free cash flow reached $504 million, including $284 million in share repurchases. The company plans to repurchase an additional $500 million of stock through Q3 2026.

For Q4 2025, Zebra expects sales growth of 8–11%, adjusted EBITDA margin around 22%, and non-GAAP EPS between $4.20 and $4.40. Full-year free cash flow is forecast to exceed $800 million.
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Author
WS Investor 10-28-25
Zebra Technologies (NASDAQ: ZBRA) announced it has completed the acquisition of Elo Touch Solutions, expanding its customer-facing and self-service technology portfolio across retail, hospitality, healthcare, QSR, and industrial markets, while increasing its addressable market by approximately $8 billion.
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Author
The Investor 10-01-25