AI Earnings Predictions for Zebra Technologies Corporation (ZBRA)

EX-99.1

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EX-99.1

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Exhibit 99.1

Zebra Technologies Corporation

3 Overlook Point

Lincolnshire, IL 60069 USA

+1 847 634 6700

www.zebra.com

Zebra Technologies Announces Third Quarter 2026 Results

Strong growth across segments and regions reflects customer investment in automation and productivity

Raises full year outlook

Lincolnshire, Ill., November 3, 2026 — Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating workflows to deliver intelligent operations, today announced results for the third quarter ended October 3, 2026.

Third-Quarter Financial Highlights

•Net sales of $1,614 million; year-over-year increase of 22.3%

•Net income of $164 million and net income per diluted share of $3.43

•Non-GAAP diluted EPS increased year-over-year to $4.95

•Adjusted EBITDA increased year-over-year to $349 million

•Share repurchases of $75 million

“We delivered another record quarter underpinned by strong execution and broad-based demand trends with Elo Touch contributing to our double-digit growth as customers prioritize automating their frontline operations. Our efforts to strengthen memory supply, implement pricing actions and capture operating leverage enabled us to support our growth while maintaining adjusted EBITDA margin year-over-year," said Bill Burns, Chief Executive Officer of Zebra Technologies. "These results reinforce our confidence in the durability of demand and the strength of our business model as we execute on our strategy to drive profitable growth."

"We are putting our strong cash generation and balance sheet to work, investing in growth while returning capital to shareholders," said Nathan Winters, Chief Financial Officer of Zebra Technologies. "We repurchased more than $640 million of shares through the first nine months of the year, reflecting our confidence in Zebra's long-term opportunity and our commitment to disciplined capital allocation."

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$ in millions, except per share amounts3Q263Q25Change

Select reported measures:

Net sales$1,614 $1,320 22.3%

Gross profit738 634 16.4%

Gross margin 45.7 %48.0 %(230) bps

Net income164 101 62.4%

Net income margin10.2 %7.7 %250 bps

Net income per diluted share$3.43 $1.97 74.1%

Select Non-GAAP measures:

Adjusted net sales$1,614 $1,320 22.3%

Organic net sales growth11.3%

Adjusted gross profit742 636 16.7%

Adjusted gross margin46.0 %48.2 %(220) bps

Adjusted EBITDA349 285 22.5%

Adjusted EBITDA margin21.6 %21.6 %0 bps

Non-GAAP net income$237 $198 19.7%

Non-GAAP earnings per diluted share$4.95 $3.88 27.6%

Third Quarter 2026 Performance

Net sales were $1,614 million compared to $1,320 million in the prior year. Net sales in the Connected Frontline ("CF") segment were $949 million compared to $705 million in the prior year. Asset Visibility & Automation ("AVA") segment net sales were $665 million compared to $615 million in the prior year. Consolidated organic net sales increased 11.3% year-over-year, with a 15.0% increase in the CF segment and a 7.0% increase in the AVA segment.

Gross profit was $738 million compared to $634 million in the prior year. Gross margin decreased to 45.7% compared to 48.0% in the prior year primarily due to increased memory component costs and business mix partially offset by favorable foreign currency. Adjusted gross margin was 46.0% compared to 48.2% in the prior year.

Operating expenses increased to $501 million from $451 million in the prior year primarily due to expenses associated with acquired businesses including amortization of intangible assets. Adjusted operating expenses increased to $413 million from $368 million in the prior year.

Net income was $164 million, or $3.43 per diluted share, compared to net income of $101 million, or $1.97 per diluted share, in the prior year. Non-GAAP net income increased to $237 million or $4.95 per diluted share, compared to $198 million, or $3.88 per diluted share for the prior year.

Adjusted EBITDA increased to $349 million, or 21.6% of adjusted net sales, compared to $285 million, or 21.6% of adjusted net sales in the prior year.

Balance Sheet and Cash Flow

As of October 3, 2026, the Company had cash and cash equivalents of $182 million and total debt of $2,578 million.

For the first nine months of 2026, net cash provided by operating activities was $711 million and the Company invested $50 million in capital expenditures, resulting in free cash flow of $661 million. The Company also made share repurchases of $643 million.

Outlook

Mr. Burns added, "We remain confident in the growth drivers supporting our business, and our ability to capture the opportunity ahead. We are driving operating productivity as we scale to meet the strong demand we are seeing for

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our solutions. Together, these efforts support our increased full-year outlook and position us well for sustainable profitable growth as we continue to benefit from trends in automation and Physical AI."

The Company

EX-99.1

2 zbraex99120260704.htm

EX-99.1

Document

Exhibit 99.1

Zebra Technologies Corporation

3 Overlook Point

Lincolnshire, IL 60069 USA

+1 847 634 6700

www.zebra.com

Zebra Technologies Announces Second Quarter 2026 Results

Delivers record performance with broad-based growth across segments and regions

Raises full year outlook

Lincolnshire, Ill., August 4, 2026 — Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating workflows to deliver intelligent operations, today announced results for the second quarter ended July 4, 2026.

Second-Quarter Financial Highlights

•Net sales of $1,557 million; year-over-year increase of 20.4%

•Net income of $233 million and net income per diluted share of $4.85

•Non-GAAP diluted EPS increased year-over-year to $6.35

•Adjusted EBITDA increased year-over-year to $431 million

•Recorded IEEPA tariff recoveries of $73 million, of which $14 million received in the quarter

•Share repurchases of $268 million

“Our record results reflect broad-based demand for our innovative solutions and excellent execution on our growth and profitability priorities. We delivered for our customers by leveraging our long-standing supplier relationships to support our growth," said Bill Burns, Chief Executive Officer of Zebra Technologies. "The momentum we see across our business underscores Zebra's position as the foundation for intelligent operations and frontline AI as customers digitize and automate environments."

"Our strong balance sheet and cash flow continue to provide significant financial flexibility, enabling us to invest for growth while returning more than $560 million to shareholders in the first half of the year through disciplined share repurchases," said Nathan Winters, Chief Financial Officer of Zebra Technologies. "We believe this balanced approach positions Zebra to create long-term shareholder value."

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$ in millions, except per share amounts2Q262Q25Change

Select reported measures:

Net sales$1,557 $1,293 20.4%

Gross profit825 616 33.9%

Gross margin 53.0 %47.6 %540 bps

Net income233 112 108.0%

Net income margin15.0 %8.7 %630 bps

Net income per diluted share$4.85 $2.19 121.5%

Select Non-GAAP measures:

Adjusted net sales$1,557 $1,293 20.4%

Organic net sales growth9.2%

Adjusted gross profit830 619 34.1%

Adjusted gross margin53.3 %47.9 %540 bps

Adjusted EBITDA431 267 61.4%

Adjusted EBITDA margin27.7 %20.6 %710 bps

Non-GAAP net income$305 $186 64.0%

Non-GAAP earnings per diluted share$6.35 $3.61 75.9%

Second Quarter 2026 Compared to the Second Quarter 2025

Net sales were $1,557 million compared to $1,293 million in the prior year. Net sales in the Connected Frontline ("CF") segment were $903 million compared to $717 million in the prior year. Asset Visibility & Automation ("AVA") segment net sales were $654 million compared to $576 million in the prior year. Consolidated organic net sales increased 9.2% year-over-year, with a 7.5% increase in the CF segment and an 11.4% increase in the AVA segment.

Gross profit was $825 million compared to $616 million in the prior year. Gross margin increased to 53.0% compared to 47.6% in the prior year primarily due to IEEPA tariff recoveries and favorable foreign currency exchange. Adjusted gross margin was 53.3% compared to 47.9% in the prior year.

Operating expenses increased to $504 million from $433 million in the prior year primarily due to expenses associated with acquired businesses including amortization of intangible assets. Adjusted operating expenses increased to $419 million from $370 million in the prior year.

Net income was $233 million, or $4.85 per diluted share, compared to net income of $112 million, or $2.19 per diluted share, in the prior year. Non-GAAP net income increased to $305 million or $6.35 per diluted share, compared to $186 million, or $3.61 per diluted share for the prior year.

Adjusted EBITDA increased to $431 million, or 27.7% of adjusted net sales, compared to $267 million, or 20.6% of adjusted net sales in the prior year.

Balance Sheet and Cash Flow

As of July 4, 2026, the Company had cash and cash equivalents of $157 million and total debt of $2,776 million.

For the first six months of 2026, net cash provided by operating activities was $387 million and the Company invested $26 million in capital expenditures, resulting in free cash flow of $361 million. The Company also made share repurchases of $568 million.

Outlook

Mr. Burns added, "Strong demand momentum and progress on productivity and memory supply supports our significantly increased outlook for the full year. We are focused on driving sustainable growth across our business with our innovative portfolio of solutions, as we continue to benefit from trends in automation and Physical AI."

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Third Quarter 2026

The Company expects third quarter sales growth between 17% and 20% compared to the prior year. This expectation includes approximately 10.5 points of favorable impac

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