$ZBRA · ZEBRA TECHNOLOGIES CORP
Zebra Technologies reported Q3 2026 results with net sales of $1.614B (+22.3% YoY), GAAP diluted EPS of $3.43, and non-GAAP diluted EPS of $4.95. Organic net sales grew 11.3%, with the Connected Frontline segment up 15.0% and Asset Visibility & Automation up 7.0%. The company raised its full-year outlook, guided Q4 sales growth of 10%-14%, non-GAAP EPS of $5.00-$5.40, and expects full-year free cash flow of at least $1B.
- Net sales of $1.614B, up 22.3% YoY; organic net sales growth of 11.3%
- Non-GAAP diluted EPS of $4.95 vs. $3.88 in prior year, a 27.6% increase
- Adjusted EBITDA of $349M with margin flat YoY at 21.6%
- Q4 guidance: sales growth 10%-14%, non-GAAP EPS $5.00-$5.40, adjusted EBITDA margin ~22%
- Full-year free cash flow expected to be at least $1B; $643M in share repurchases through nine months
Stock essentially flat at $361.13 (-0.04%) in regular trading despite strong results and raised guidance, suggesting the beat was largely priced in or offset by gross margin compression concerns (45.7% vs. 48.0% prior year).
Zebra posted its strongest revenue growth in years at 22.3%, raised guidance across the board, and deployed $643M in buybacks — signaling management conviction in a durable automation demand cycle.
Zebra's 22.3% top-line growth and raised outlook signal robust enterprise spending on automation and frontline digitization, outpacing broader industrial tech peers and reinforcing the Physical AI investment cycle.
Gross margin declined 230 bps YoY to 45.7%, driven by increased memory component costs and business mix. The company carries $2.578B in total debt against $182M cash, creating sensitivity to interest rate and credit market conditions.