Zebra Technologies (NASDAQ:ZBRA) Releases Quarterly Earnings Results, Beats Estimates By $1.99 EPS

Zebra Technologies (NASDAQ:ZBRA) issued its quarterly earnings data on Tuesday. The industrial products company reported $6.35 earnings per share for the quarter, beating the consensus estimate of $4.36 by $1.99, Briefing.com reports. The company had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.50 billion. Zebra Technologies had a net margin of 7.49% and a return on equity of 18.91%. The company’s revenue was up 20.4% on a year-over-year basis. During the same period in the prior year, the firm earned $3.61 earnings per share. 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

NASDAQ ZBRA opened at $368.83 on Wednesday. The company has a quick ratio of 0.57, a current ratio of 0.96 and a debt-to-equity ratio of 0.69. The company has a market capitalization of $17.57 billion, a P/E ratio of 44.60 and a beta of 1.59. Zebra Technologies has a 12-month low of $199.05 and a 12-month high of $369.79. The firm has a 50-day moving average price of $257.61 and a two-hundred day moving average price of $240.86.

Insider Activity at Zebra Technologies

In other news, Director Janice M. Roberts sold 3,000 shares of the firm’s 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 transaction, the director directly owned 6,183 shares of the company’s stock, valued at approximately $1,542,905.82. This trade represents a 32.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Loizides Melissa Luff sold 500 shares of Zebra Technologies stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $253.95, for a total transaction of $126,975.00. Following the completion of the sale, the insider owned 3,702 shares of the company’s stock, valued at approximately $940,122.90. The trade was a 11.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.91% of the stock is currently owned by company insiders.

Institutional Trading of Zebra Technologies

A number of institutional investors have recently modified their holdings of ZBRA. NewEdge Advisors LLC raised its holdings in shares of Zebra Technologies by 39.9% during the 1st quarter. NewEdge Advisors LLC now owns 1,318 shares of the industrial products company’s stock worth $372,000 after buying an additional 376 shares in the last quarter. Integrated Wealth Concepts LLC lifted its position in shares of Zebra Technologies by 28.7% during the 3rd quarter. Integrated Wealth Concepts LLC now owns 1,131 shares of the industrial products company’s stock worth $336,000 after buying an additional 252 shares during the last quarter. Elevation Point Wealth Partners LLC acquired a new stake in Zebra Technologies in the fourth quarter valued at about $316,000. Evolve Private Wealth LLC acquired a new stake in Zebra Technologies in the fourth quarter valued at about $292,000. Finally, Snowden Capital Advisors LLC bought a new position in Zebra Technologies in the second quarter valued at about $208,000. 91.03% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research analysts recently commented on ZBRA shares. KeyCorp upgraded shares of Zebra Technologies from a “sector weight” rating to an “overweight” rating and set a $305.00 price target on the stock in a research note on Wednesday, May 13th. Needham & Company LLC restated a “buy” rating and set a $345.00 price objective on shares of Zebra Technologies in a research report on Wednesday, May 13th. Zacks Research downgraded Zebra Technologies from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 20th. BNP Paribas Exane lifted their price target on Zebra Technologies from $365.00 to $370.00 and gave the stock an “outperform” rating in a report on Wednesday, May 13th. Finally, Robert W. Baird boosted their price target on Zebra Technologies from $300.00 to $310.00 and gave the company an “outperform” rating 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 stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $327.00.

Key Stories Impacting Zebra Technologies

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

• Positive Sentiment: Second-quarter revenue rose 20.4% year over year to $1.557 billion, exceeding the $1.50 billion consensus estimate. Non-GAAP EPS of $6.35 substantially surpassed expectations of roughly $4.35-$4.36 and increased from $3.61 a year ago. Zebra Technologies Announces Second Quarter 2026 Results
• Positive Sentiment: Management raised fiscal 2026 guidance to $20.75-$21.25 in EPS and $6.2-$6.3 billion in revenue, above analyst expectations of $17.87 EPS and $6.1 billion in sales. Third-quarter EPS guidance of $4.70-$4.90 also exceeds the $4.38 consensus. ZBRA Q2 Earnings Beat Estimates on Sales Growth, Outlook Raised
• Positive Sentiment: Beyond the headline beat, organic sales grew 9.2%, while broad-based demand and acquisitions supported growth. Reports indicate demand is running ahead of available supply, potentially supporting pricing power, margins and free cash flow. Zebra Changed Its Stripes: The $460 Stampede Is Just Beginning
• Neutral Sentiment: The earnings call and improved outlook have strengthened the company’s growth narrative, particularly around frontline automation, AI-enabled products and machine vision. Investors will likely watch whether supply can keep pace with demand and whether the raised targets are sustained.
• Negative Sentiment: After the rally, ZBRA trades near its 52-week high with a reported P/E ratio of approximately 44.6, leaving the stock more sensitive to any earnings, demand or guidance disappointment.

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.