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Acquisitions contributed approximately 9% to total sales growth in the third quarter of 2026.
ZBRA repurchased $643 million in shares, but rising costs and component shortages remain concerns.
Zebra Technologies Corporation (ZBRA - Free Report) is benefiting from growth across the healthcare, manufacturing, transportation & logistics and retail & e-commerce end markets. Higher sales of mobile computing solutions are driving the company’s Connected Frontline segment. Ongoing device upgrade cycles and growing adoption of software and AI tools are also aiding the segment. Revenues from the segment increased 34.6% year over year in the third quarter of 2026. Solid demand for printing solutions, machine vision, data capture and RFID products is boosting the Asset Visibility & Automation segment’s performance. In the third quarter of 2026, the segment’s sales increased 8.1% on a year-over-year basis.
ZBRA has steadily strengthened its business through acquisitions. In the third quarter of 2026, acquisitions and dispositions contributed approximately 9% to total sales growth. In September 2025, Zebra Technologies completed the acquisition of Elo Touch Solutions, Inc. (Elo). The inclusion of Elo’s expertise in consumer-facing workflow, augmented by its suite of kiosks, edge computing, payment and touchscreen solutions, expanded its addressable market by about $8 billion. The transaction expanded Zebra Technologies' reach across retail, healthcare, industrial and hospitality markets. In the third quarter of 2026, Elo delivered high-single-digit sales growth, while joint selling efforts continued to expand the commercial pipeline and create new growth opportunities.
Zebra Technologies is committed to rewarding its shareholders through share buybacks. The company repurchased shares worth $643 million in the first nine months of 2026, including $75 million in the third quarter. The company also repurchased shares worth $587 million in 2025. In May 2022, its board of directors authorized a share repurchase program for up to $1 billion. In February 2026, the company’s board of directors approved an additional share repurchase authorization of up to $1 billion.
ZBRA’s Zacks Rank
In the past year, this Zacks Rank #3 (Hold) company’s shares surged 35.5% in line with the industry.
Image Source: Zacks Investment Research
However, Zebra Technologies is dealing with escalating costs and expenses, along with higher memory costs and constrained component availability. In the third quarter of 2026, the company witnessed a 27.7% year-over-year increase in the cost of sales. Total operating expenses increased 11.1% year over year, caused by higher selling and marketing expenses, research and development costs, and increased amortization of intangibles.
Zebra Technologies operates across diverse regions (North America, EMEA, the Asia-Pacific and Latin America), exposing it to certain political, environmental and geopolitical issues. The ongoing conflicts involving Russia and Ukraine and tensions in the Middle East, along with changes in China-Taiwan and U.S.-China relations, might harm its business and operational results in the long run.
Stocks to Consider
Some better-ranked companies from the same space are discussed below:
The company delivered a trailing four-quarter average earnings surprise of 20.1%. In the past 60 days, the consensus estimate for GNRC’s 2026 earnings has increased 0.6%.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 10.7%.
The Zacks Consensus Estimate for CR’s 2026 earnings has increased 4.4% in the past 60 days.
Gates Industrial Corporation Ltd. (GTES - Free Report) currently carries a Zacks Rank of 2. GTES delivered a trailing four-quarter average earnings surprise of 6.6%.
In the past 60 days, the Zacks Consensus Estimate for Gates Industrial’s 2026 earnings has increased 1.2%.
View the Zacks #1 Rank List
Image: Bigstock
ZBRA Exhibits Strong Prospects Despite Persisting Headwinds
Key Takeaways
Zebra Technologies Corporation (ZBRA - Free Report) is benefiting from growth across the healthcare, manufacturing, transportation & logistics and retail & e-commerce end markets. Higher sales of mobile computing solutions are driving the company’s Connected Frontline segment. Ongoing device upgrade cycles and growing adoption of software and AI tools are also aiding the segment. Revenues from the segment increased 34.6% year over year in the third quarter of 2026. Solid demand for printing solutions, machine vision, data capture and RFID products is boosting the Asset Visibility & Automation segment’s performance. In the third quarter of 2026, the segment’s sales increased 8.1% on a year-over-year basis.
ZBRA has steadily strengthened its business through acquisitions. In the third quarter of 2026, acquisitions and dispositions contributed approximately 9% to total sales growth. In September 2025, Zebra Technologies completed the acquisition of Elo Touch Solutions, Inc. (Elo). The inclusion of Elo’s expertise in consumer-facing workflow, augmented by its suite of kiosks, edge computing, payment and touchscreen solutions, expanded its addressable market by about $8 billion. The transaction expanded Zebra Technologies' reach across retail, healthcare, industrial and hospitality markets. In the third quarter of 2026, Elo delivered high-single-digit sales growth, while joint selling efforts continued to expand the commercial pipeline and create new growth opportunities.
Zebra Technologies is committed to rewarding its shareholders through share buybacks. The company repurchased shares worth $643 million in the first nine months of 2026, including $75 million in the third quarter. The company also repurchased shares worth $587 million in 2025. In May 2022, its board of directors authorized a share repurchase program for up to $1 billion. In February 2026, the company’s board of directors approved an additional share repurchase authorization of up to $1 billion.
ZBRA’s Zacks Rank
In the past year, this Zacks Rank #3 (Hold) company’s shares surged 35.5% in line with the industry.
Image Source: Zacks Investment Research
However, Zebra Technologies is dealing with escalating costs and expenses, along with higher memory costs and constrained component availability. In the third quarter of 2026, the company witnessed a 27.7% year-over-year increase in the cost of sales. Total operating expenses increased 11.1% year over year, caused by higher selling and marketing expenses, research and development costs, and increased amortization of intangibles.
Zebra Technologies operates across diverse regions (North America, EMEA, the Asia-Pacific and Latin America), exposing it to certain political, environmental and geopolitical issues. The ongoing conflicts involving Russia and Ukraine and tensions in the Middle East, along with changes in China-Taiwan and U.S.-China relations, might harm its business and operational results in the long run.
Stocks to Consider
Some better-ranked companies from the same space are discussed below:
Generac Holdings Inc. (GNRC - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company delivered a trailing four-quarter average earnings surprise of 20.1%. In the past 60 days, the consensus estimate for GNRC’s 2026 earnings has increased 0.6%.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 10.7%.
The Zacks Consensus Estimate for CR’s 2026 earnings has increased 4.4% in the past 60 days.
Gates Industrial Corporation Ltd. (GTES - Free Report) currently carries a Zacks Rank of 2. GTES delivered a trailing four-quarter average earnings surprise of 6.6%.
In the past 60 days, the Zacks Consensus Estimate for Gates Industrial’s 2026 earnings has increased 1.2%.