Zebra Technologies Corp - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.48%.
Did ZBRA Beat Earnings? Q1 2026 Results
Zebra Technologies posted a notably strong first quarter of fiscal 2026, with non-GAAP diluted EPS of $4.75 beating the $4.25 consensus estimate by 11.88% and revenue of $1.50 billion edging ahead of the $1.48 billion Wall Street forecast by 1.10%, reflecting 14.3% year-over-year sales growth. The standout driver behind those results was the Elo Touch acquisition, which contributed meaningfully to the Connected Frontline segment and helped lift adjusted EBITDA margin 90 basis points to 23.2%, while CEO Bill Burns pointed to accelerating e-commerce, automation, and Physical AI trends as the secular forces underpinning demand. Organic growth came in at a more modest 4.3% once acquisition and foreign currency effects were stripped out, though manufacturing end-market strength provided an additional tailwind. With confidence in its trajectory, Zebra raised its full-year 2026 outlook, now targeting sales growth of 10% to 14%, adjusted EBITDA margin of roughly 22%, non-GAAP diluted EPS of $18.30 to $18.70, and free cash flow exceeding $900 million, with Q2 guidance calling for non-GAAP EPS of $4.20 to $4.50.
- Strength in manufacturing end market
- Broad-based organic growth across segments and regions (4.3% organic net sales growth)
- Elo Touch acquisition contributing solid profitable growth with early synergies
- Favorable foreign currency exchange and business mix
- Productivity initiatives driving gross margin expansion
- Adjusted EBITDA margin expanded 90 basis points to 23.2%
“Our strong first quarter results demonstrate the durability of demand for our innovative technology, with organic growth across our segments and regions, led by strength in our manufacturing end market. Elo Touch also contributed solid profitable growth as we begin to drive synergies. These results underscore the value Zebra delivers as the foundation for intelligent operations across the frontline, helping customers operate more efficiently and effectively.”
Zebra Technologies CEO, on the earnings call
Forward Guidance & Outlook
Zebra raised its full-year 2026 outlook. For Q2 2026, the company expects sales growth of 14% to 17% year-over-year (including approximately 10.5 points from acquisitions and FX), adjusted EBITDA margin slightly above 21%, and non-GAAP diluted EPS of $4.20 to $4.50 assuming a ~19% adjusted tax rate. For the full year 2026, Zebra expects sales growth of 10% to 14% (including approximately 7 points from acquisitions and FX), adjusted EBITDA margin of approximately 22%, non-GAAP diluted EPS of $18.30 to $18.70, and free cash flow greater than $900 million.
ZBRA YoY Financials
ZBRA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.