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ZBRA Q2 Earnings Beat Estimates on Sales Growth, Outlook Raised
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Key Takeaways
Zebra Technologies beat Q2 earnings and revenue estimates as sales rose 20.4% year over year.
ZBRA raised its 2026 outlook and now expects adjusted EPS of $20.75-$21.25 and at least $1B free cash flow.
ZBRA expects Q3 sales growth of 17-20%, aided by acquisitions and foreign currency impacts.
Zebra Technologies Corporation (ZBRA - Free Report) reported second-quarter 2026 adjusted earnings of $6.35 per share, which beat the Zacks Consensus Estimate of $4.35. The bottom line increased 75.9% from $3.61 per share reported in the year-ago quarter.
Total revenues of $1.56 billion surpassed the consensus estimate of $1.50 billion. The top line increased 20.4% year over year, supported by broad-based growth across segments and regions. Consolidated organic net sales increased 9.2% year over year. Acquisitions contributed 8.7% to reported sales growth, while favorable foreign currency translation contributed 2.5%.
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 25.9% year over year to $903 million. Organic net sales increased 7.5%. The Zacks Consensus Estimate was pegged at $839 million.
The Asset Visibility & Automation segment’s revenues totaled $654 million, up 13.5% year over year. Organic net sales increased 11.4%. The Zacks Consensus Estimate was pegged at $662 million.
Zebra Technologies Corporation Price, Consensus and EPS Surprise
In the second quarter of 2026, Zebra Technologies’ cost of sales totaled $732 million, up 8.1% year over year. Total operating expenses increased 16.4% year over year to $504 million.
The company reported net income of $233 million compared with $112 million in the year-ago quarter. Adjusted net income increased to $305 million from $186 million reported in the prior-year quarter.
Zebra Technologies’ Balance Sheet and Cash Flow
Zebra Technologies had cash and cash equivalents of $157 million at the end of the second quarter of 2026. Total debt amounted to $2.78 billion, while the net debt-to-adjusted EBITDA ratio was 1.9.
In the first six months of 2026, Zebra Technologies generated net cash of $387 million from operating activities compared with $325 million in the year-ago period. The company incurred capital expenditures of $26 million in the same time frame. Free cash flow amounted to $361 million compared with $288 million in the prior-year period.
ZBRA’s Guidance
For the third quarter of 2026, Zebra Technologies expects net sales growth in the band of 17-20% year over year. The guidance includes an approximately 10.5-percentage-point favorable impact from acquisitions and foreign currency.
Adjusted EBITDA margin is anticipated to be approximately 22% in the third quarter. Adjusted earnings per share are expected to be in the band of $4.70-$4.90.
For 2026, ZBRA raised its financial outlook. The company now expects adjusted earnings to be $20.75-$21.25 per share. Adjusted EBITDA margin is anticipated to be in the band of 23.5-24.0% for the year. ZBRA currently expects net sales growth of 14-16% year over year. It expects free cash flow to be at least $1 billion.
ZBRA’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Constellium SE (CSTM - Free Report) came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.
Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.
Generac Holdings Inc. (GNRC - Free Report) came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.
Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.
Graco Inc. (GGG - Free Report) reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.
The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.
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ZBRA Q2 Earnings Beat Estimates on Sales Growth, Outlook Raised
Key Takeaways
Zebra Technologies Corporation (ZBRA - Free Report) reported second-quarter 2026 adjusted earnings of $6.35 per share, which beat the Zacks Consensus Estimate of $4.35. The bottom line increased 75.9% from $3.61 per share reported in the year-ago quarter.
Total revenues of $1.56 billion surpassed the consensus estimate of $1.50 billion. The top line increased 20.4% year over year, supported by broad-based growth across segments and regions. Consolidated organic net sales increased 9.2% year over year. Acquisitions contributed 8.7% to reported sales growth, while favorable foreign currency translation contributed 2.5%.
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 25.9% year over year to $903 million. Organic net sales increased 7.5%. The Zacks Consensus Estimate was pegged at $839 million.
The Asset Visibility & Automation segment’s revenues totaled $654 million, up 13.5% year over year. Organic net sales increased 11.4%. The Zacks Consensus Estimate was pegged at $662 million.
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 second quarter of 2026, Zebra Technologies’ cost of sales totaled $732 million, up 8.1% year over year. Total operating expenses increased 16.4% year over year to $504 million.
The company reported net income of $233 million compared with $112 million in the year-ago quarter. Adjusted net income increased to $305 million from $186 million reported in the prior-year quarter.
Zebra Technologies’ Balance Sheet and Cash Flow
Zebra Technologies had cash and cash equivalents of $157 million at the end of the second quarter of 2026. Total debt amounted to $2.78 billion, while the net debt-to-adjusted EBITDA ratio was 1.9.
In the first six months of 2026, Zebra Technologies generated net cash of $387 million from operating activities compared with $325 million in the year-ago period. The company incurred capital expenditures of $26 million in the same time frame. Free cash flow amounted to $361 million compared with $288 million in the prior-year period.
ZBRA’s Guidance
For the third quarter of 2026, Zebra Technologies expects net sales growth in the band of 17-20% year over year. The guidance includes an approximately 10.5-percentage-point favorable impact from acquisitions and foreign currency.
Adjusted EBITDA margin is anticipated to be approximately 22% in the third quarter. Adjusted earnings per share are expected to be in the band of $4.70-$4.90.
For 2026, ZBRA raised its financial outlook. The company now expects adjusted earnings to be $20.75-$21.25 per share. Adjusted EBITDA margin is anticipated to be in the band of 23.5-24.0% for the year. ZBRA currently expects net sales growth of 14-16% year over year. It expects free cash flow to be at least $1 billion.
ZBRA’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Constellium SE (CSTM - Free Report) came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.
Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.
Generac Holdings Inc. (GNRC - Free Report) came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.
Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.
Graco Inc. (GGG - Free Report) reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.
The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.