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Zebra (ZBRA) Down 12.2% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Zebra Technologies (ZBRA - Free Report) . Shares have lost about 12.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Zebra due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Zebra Technologies Beats Q1 Earnings Estimates, Raises 2026 Outlook
Zebra Technologies 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.
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%.
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.
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, it 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. It currently expects net sales growth of 10-14% year over year. It expects free cash flow to be at least $900 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Zebra has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Zebra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Zebra (ZBRA) Down 12.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Zebra Technologies (ZBRA - Free Report) . Shares have lost about 12.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Zebra due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Zebra Technologies Beats Q1 Earnings Estimates, Raises 2026 Outlook
Zebra Technologies 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.
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%.
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.
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, it 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. It currently expects net sales growth of 10-14% year over year. It expects free cash flow to be at least $900 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Zebra has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Zebra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.