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Zebra Technologies Beats Q1 Earnings Estimates, Raises 2026 Outlook
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Key Takeaways
ZBRA beat Q1 estimates with adjusted EPS of $4.75 on 14.3% revenue growth to $1.50 billion.
Zebra Technologies raised its 2026 EPS outlook to $18.30-$18.70 and sees 10-14% sales growth.
ZBRA expects Q2 sales growth of 14-17% and adjusted EPS between $4.20 and $4.50.
Zebra Technologies Corporation (ZBRA - Free Report) reported first-quarter 2026 adjusted earnings of $4.75 per share, which beat the Zacks Consensus Estimate of $4.21. The bottom line increased 18.2% from $4.02 per share reported in the year-ago quarter.
Total revenues of $1.50 billion surpassed the consensus estimate of $1.47 billion. The top line increased 14.3% year over year, driven by broad-based growth across segments and regions. Consolidated organic net sales increased 4.3% year over year.
ZBRA’s Segmental Performance
Effective from the fourth quarter of 2025, the company started reporting under two segments, namely Connected Frontline and Asset Visibility & Automation.
Revenues from the Connected Frontline segment rose 20.6% year over year to $825 million. Organic net sales increased 3.8%.
The Asset Visibility & Automation segment’s revenues totaled $670 million, up 7.4% year over year. Organic net sales increased 4.8%.
Zebra Technologies Corporation Price, Consensus and EPS Surprise
In the first quarter of 2026, Zebra Technologies’ cost of sales totaled $753 million, up 13.6% year over year. Total operating expenses increased 17.1% year over year to $527 million.
The company reported net income of $135 million compared with $136 million in the year-ago quarter. Adjusted net income increased to $235 million from $208 million reported in the prior-year quarter.
Zebra Technologies’ Balance Sheet and Cash Flow
Zebra Technologies had cash and cash equivalents of $114 million at the end of the first quarter compared with $125 million at the end of 2025. Long-term debt totaled $2.39 billion compared with $2.36 billion at the end of 2025.
In the first three months of 2026, Zebra Technologies generated net cash of $176 million in operating activities compared with $178 million in the year-ago period. The company incurred capital expenditure of $13 million in the same time frame. Free cash flow amounted to $163 million compared with $158 million in the prior-year period.
ZBRA’s Guidance
For the second quarter of 2026, Zebra Technologies expects net sales growth in the band of 14-17% year over year. The guidance includes an approximately 10.5 point favorable impact from acquisitions and foreign currency.
Adjusted EBITDA margin is anticipated to be a little higher than 21% in the second quarter. Adjusted earnings per share are expected to be in the band of $4.20-$4.50.
For 2026, ZBRA raised its financial outlook. The company now expects adjusted earnings to be $18.30-$18.70 per share compared with $17.70-$18.30 anticipated earlier. Adjusted EBITDA margin is anticipated to be approximately 22% for the year. ZBRA currently expects net sales growth of 10-14% year over year. It expects free cash flow to be at least $900 million.
ZBRA’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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Zebra Technologies Beats Q1 Earnings Estimates, Raises 2026 Outlook
Key Takeaways
Zebra Technologies Corporation (ZBRA - Free Report) reported first-quarter 2026 adjusted earnings of $4.75 per share, which beat the Zacks Consensus Estimate of $4.21. The bottom line increased 18.2% from $4.02 per share reported in the year-ago quarter.
Total revenues of $1.50 billion surpassed the consensus estimate of $1.47 billion. The top line increased 14.3% year over year, driven by broad-based growth across segments and regions. Consolidated organic net sales increased 4.3% year over year.
ZBRA’s Segmental Performance
Effective from the fourth quarter of 2025, the company started reporting under two segments, namely Connected Frontline and Asset Visibility & Automation.
Revenues from the Connected Frontline segment rose 20.6% year over year to $825 million. Organic net sales increased 3.8%.
The Asset Visibility & Automation segment’s revenues totaled $670 million, up 7.4% year over year. Organic net sales increased 4.8%.
Zebra Technologies Corporation Price, Consensus and EPS Surprise
Zebra Technologies Corporation price-consensus-eps-surprise-chart | Zebra Technologies Corporation Quote
ZBRA’s Margin Profile
In the first quarter of 2026, Zebra Technologies’ cost of sales totaled $753 million, up 13.6% year over year. Total operating expenses increased 17.1% year over year to $527 million.
The company reported net income of $135 million compared with $136 million in the year-ago quarter. Adjusted net income increased to $235 million from $208 million reported in the prior-year quarter.
Zebra Technologies’ Balance Sheet and Cash Flow
Zebra Technologies had cash and cash equivalents of $114 million at the end of the first quarter compared with $125 million at the end of 2025. Long-term debt totaled $2.39 billion compared with $2.36 billion at the end of 2025.
In the first three months of 2026, Zebra Technologies generated net cash of $176 million in operating activities compared with $178 million in the year-ago period. The company incurred capital expenditure of $13 million in the same time frame. Free cash flow amounted to $163 million compared with $158 million in the prior-year period.
ZBRA’s Guidance
For the second quarter of 2026, Zebra Technologies expects net sales growth in the band of 14-17% year over year. The guidance includes an approximately 10.5 point favorable impact from acquisitions and foreign currency.
Adjusted EBITDA margin is anticipated to be a little higher than 21% in the second quarter. Adjusted earnings per share are expected to be in the band of $4.20-$4.50.
For 2026, ZBRA raised its financial outlook. The company now expects adjusted earnings to be $18.30-$18.70 per share compared with $17.70-$18.30 anticipated earlier. Adjusted EBITDA margin is anticipated to be approximately 22% for the year. ZBRA currently expects net sales growth of 10-14% year over year. It expects free cash flow to be at least $900 million.
ZBRA’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.