Zebra Technologies (NASDAQ:ZBRA) Issues Earnings Results, Beats Expectations By $1.99 EPS

Zebra Technologies (NASDAQ:ZBRA) issued its earnings results on Tuesday. The industrial products company reported $6.35 EPS for the quarter, beating the consensus estimate of $4.36 by $1.99, Briefing.com reports. The company had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.50 billion. Zebra Technologies had a net margin of 7.49% and a return on equity of 18.91%. The business’s revenue for the quarter was up 20.4% compared to the same quarter last year. During the same period in the previous year, the company earned $3.61 EPS. Zebra Technologies updated its Q3 2026 guidance to 4.700-4.900 EPS and its FY 2026 guidance to 20.750-21.250 EPS.

Here are the key takeaways from Zebra Technologies’ conference call:

• Record Q2 performance included sales above $1.5 billion, 9.2% organic growth, a 27.7% adjusted EBITDA margin, and non-GAAP EPS of $6.35, up 76% year over year. Results benefited from strong demand, pricing, productivity gains, and $73 million of tariff recovery.
• Zebra raised its full-year outlook to 14%–16% sales growth, 23.5%–24% adjusted EBITDA margin, $20.75–$21.25 in non-GAAP EPS, and at least $1 billion of free cash flow. Management cited broad-based momentum across regions and end markets, particularly manufacturing, healthcare, machine vision, and Elo Touch.
• Demand for Zebra’s AI, RFID, mobile computing, machine vision, and automation solutions remains strong, with management highlighting a robust multi-year transportation and logistics pipeline beginning in 2027 and a long-term organic growth profile of 5%–7% for both operating segments.
• Memory supply remains a key constraint and cost risk. Zebra expects to fully mitigate an approximately $120 million full-year memory cost headwind through price increases, supplier diversification, productivity initiatives, and restructuring savings, but expects higher memory costs to pressure third-quarter margins.
• The company repurchased $568 million of stock in the first half and expects approximately $150 million of additional buybacks in the second half, while maintaining flexibility due to its 1.9x debt leverage ratio and strong expected cash generation.

Zebra Technologies Stock Performance

Shares of NASDAQ ZBRA traded up $77.19 during trading on Tuesday, reaching $368.83. 2,612,311 shares of the stock traded hands, compared to its average volume of 868,440. The company has a debt-to-equity ratio of 0.69, a current ratio of 0.96 and a quick ratio of 0.57. The stock has a market capitalization of $17.57 billion, a P/E ratio of 44.60 and a beta of 1.60. Zebra Technologies has a 52-week low of $199.05 and a 52-week high of $369.79. The company has a 50-day moving average of $255.28 and a 200-day moving average of $240.11.

Wall Street Analysts Forecast Growth

ZBRA has been the subject of a number of recent research reports. Citigroup increased their price objective on Zebra Technologies from $284.00 to $306.00 and gave the company a “neutral” rating in a report on Monday, July 13th. Truist Financial boosted their target price on shares of Zebra Technologies from $267.00 to $296.00 and gave the company a “hold” rating in a report on Thursday, July 2nd. Weiss Ratings upgraded Zebra Technologies from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, July 17th. Barclays boosted their price objective on Zebra Technologies from $345.00 to $346.00 and gave the company an “overweight” rating in a research note on Monday, June 22nd. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $345.00 target price on shares of Zebra Technologies in a research note on Wednesday, May 13th. Eight investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $327.00.

Insider Buying and Selling at Zebra Technologies

In other Zebra Technologies news, Director Janice M. Roberts sold 3,000 shares of Zebra Technologies stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $249.54, for a total transaction of $748,620.00. Following the completion of the sale, the director directly owned 6,183 shares in the company, valued at $1,542,905.82. The trade was a 32.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Loizides Melissa Luff sold 500 shares of the company’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $253.95, for a total value of $126,975.00. Following the completion of the transaction, the insider owned 3,702 shares of the company’s stock, valued at $940,122.90. The trade was a 11.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.91% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Brown Advisory Inc. lifted its holdings in shares of Zebra Technologies by 2.1% in the 2nd quarter. Brown Advisory Inc. now owns 1,787 shares of the industrial products company’s stock worth $551,000 after acquiring an additional 36 shares during the last quarter. Empowered Funds LLC increased its holdings in Zebra Technologies by 1.7% in the 4th quarter. Empowered Funds LLC now owns 2,385 shares of the industrial products company’s stock valued at $579,000 after purchasing an additional 40 shares during the last quarter. Modern Wealth Management LLC raised its position in Zebra Technologies by 1.3% in the second quarter. Modern Wealth Management LLC now owns 5,635 shares of the industrial products company’s stock valued at $1,738,000 after purchasing an additional 71 shares during the period. Certuity LLC raised its position in Zebra Technologies by 9.7% in the third quarter. Certuity LLC now owns 824 shares of the industrial products company’s stock valued at $245,000 after purchasing an additional 73 shares during the period. Finally, UMB Bank n.a. lifted its stake in Zebra Technologies by 33.0% during the fourth quarter. UMB Bank n.a. now owns 306 shares of the industrial products company’s stock worth $74,000 after purchasing an additional 76 shares in the last quarter. Hedge funds and other institutional investors own 91.03% of the company’s stock.

Trending Headlines about Zebra Technologies

Here are the key news stories impacting Zebra Technologies this week:

• Positive Sentiment: Strong quarterly earnings beat expectations: Zebra reported second-quarter sales of $1.557 billion, up 20.4% year over year. GAAP diluted EPS was $4.85, while non-GAAP diluted EPS reached $6.35, well above analyst estimates of roughly $4.35–$4.36 and up from $3.61 a year earlier. Zebra Technologies Announces Second Quarter 2026 Results
• Positive Sentiment: Broad-based growth and acquisitions supported revenue: The company said sales growth was broad-based, with acquisitions also contributing to the record quarterly performance. Improved earnings and revenue momentum strengthened the investment case. ZBRA Q2 Earnings Beat Estimates on Sales Growth, Outlook Raised
• Positive Sentiment: Full-year guidance was raised above consensus: Zebra now expects fiscal 2026 EPS of $20.75–$21.25, compared with consensus of $17.87, and revenue of $6.2–$6.3 billion versus analyst expectations of approximately $6.1 billion.
• Positive Sentiment: Third-quarter outlook also exceeded expectations: Management forecast EPS of $4.70–$4.90 and revenue of $1.5–$1.6 billion, compared with consensus EPS of $4.38 and revenue near $1.5 billion.
• Neutral Sentiment: Valuation and momentum warrant caution: The stock is trading near its 52-week high, with a reported price-to-earnings ratio above 40. While the results support the rally, elevated expectations could increase volatility if future growth or guidance disappoints.

Zebra Technologies Company Profile

Zebra Technologies Corporation is a global technology company specializing in marking, tracking and computer printing solutions. The company produces a wide range of hardware and software products designed to enable real-time visibility of assets, inventory and personnel across diverse industries. Its offerings help businesses automate data capture and streamline operations in environments such as retail, healthcare, manufacturing, transportation and logistics.

The company’s product portfolio includes barcode and RFID printers, mobile computing devices, barcode scanners, RFID readers and related supplies such as labels and tags.