Zebra Technologies (NASDAQ:ZBRA) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Zebra Technologies (NASDAQ:ZBRA) issued its quarterly earnings data on Tuesday. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.89 by $0.06, Briefing.com reports. The firm had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.57 billion. Zebra Technologies had a return on equity of 22.29% and a net margin of 9.22%. Zebra Technologies’s revenue was up 22.3% on a year-over-year basis. During the same period in the previous year, the firm posted $3.88 earnings per share.

Here are the key takeaways from Zebra Technologies’ conference call:

• Record Q3 performance: Sales exceeded $1.6 billion, up 22.3% year over year (11.3% organically), while non-GAAP EPS rose 28% to $4.95, surpassing company expectations on broad-based demand.
• Zebra raised its full-year outlook to approximately 17% sales growth and $21.20 in non-GAAP EPS, with fourth-quarter EPS guided to $5.00–$5.40 and free cash flow expected to reach at least $1 billion.
• Demand is particularly strong for mobile computing, transportation and logistics, healthcare, machine vision, and Elo Touch; management cited a robust multi-year pipeline of global transportation and logistics refresh projects beginning in 2027.
• The company reported progress securing memory supply, including five newly qualified suppliers and additional inventory, supporting its ability to meet mobile-computing demand into 2027; management expects 2027 growth at the high end of its 5%–7% long-term range.
• Memory costs increased by more than $50 million year over year in Q3 and are expected to create a $145 million full-year headwind, contributing to a 220-basis-point decline in adjusted gross margin; pricing actions and productivity savings are intended to fully offset the impact.

Zebra Technologies Price Performance

Shares of NASDAQ ZBRA traded down $36.09 during trading on Tuesday, reaching $325.04. The company had a trading volume of 809,517 shares, compared to its average volume of 781,714. The company has a current ratio of 0.52, a quick ratio of 0.33 and a debt-to-equity ratio of 0.14. Zebra Technologies has a twelve month low of $199.05 and a twelve month high of $392.78. The stock has a 50-day moving average price of $367.39 and a two-hundred day moving average price of $280.91. The stock has a market capitalization of $15.48 billion, a PE ratio of 29.66 and a beta of 1.61.

Insiders Place Their Bets

In other Zebra Technologies news, Director Linda Connly sold 500 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $377.68, for a total value of $188,840.00. Following the transaction, the director directly owned 3,708 shares in the company, valued at approximately $1,400,437.44. This represents a 11.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Michael Cho sold 3,500 shares of the company’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $375.20, for a total transaction of $1,313,200.00. Following the completion of the transaction, the insider owned 5,170 shares in the company, valued at approximately $1,939,784. This trade represents a 40.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.91% of the stock is owned by company insiders.

More Zebra Technologies News

Here are the key news stories impacting Zebra Technologies this week:

• Positive Sentiment: Quarterly earnings and revenue topped expectations. Zebra reported non-GAAP diluted EPS of $4.95, above the $4.89–$4.90 analyst consensus, and revenue of $1.614 billion versus the $1.57 billion estimate. Zebra Technologies Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Growth accelerated year over year. Revenue increased 22.3% from the prior-year quarter, while adjusted EPS rose from $3.88 to $4.95. Net income was $164 million, and the company reported a 22.29% return on equity and a 9.22% net margin. Zebra Technologies Announces Third Quarter 2026 Results
• Neutral Sentiment: The earnings release and conference-call materials provide additional details on adjusted EBITDA, operating performance and management commentary that investors may use to assess the durability of the growth. Zebra Technologies Earnings Conference Call
• Negative Sentiment: The positive results did not prevent a selloff. Coverage specifically characterized the stock as falling despite the Q3 sales surprise, suggesting investors may have been expecting an even stronger outlook, additional guidance, or more favorable forward commentary. The supplied reports do not identify a specific guidance reduction. Zebra Surprises With Q3 Sales but Stock Drops
• Negative Sentiment: After the decline, ZBRA traded below its 50-day moving average of $367.39, indicating weakened short-term momentum. However, it remained above its 200-day moving average of $280.91, so the longer-term trend was less damaged.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on ZBRA. UBS Group reaffirmed a “buy” rating on shares of Zebra Technologies in a research note on Wednesday, August 5th. Citigroup reissued a “buy” rating on shares of Zebra Technologies in a research note on Monday, October 12th. TD Cowen raised their target price on shares of Zebra Technologies from $400.00 to $450.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Weiss Ratings upgraded shares of Zebra Technologies from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, October 13th. Finally, Wall Street Zen raised shares of Zebra Technologies from a “buy” rating to a “strong-buy” rating in a report on Monday. Nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Zebra Technologies presently has an average rating of “Moderate Buy” and a consensus price target of $385.83.

About Zebra Technologies

Zebra Technologies Corp. (NASDAQ: ZBRA) develops technologies that help businesses identify, track and manage assets, inventory and operational processes. Its solutions are used by organizations in retail, manufacturing, transportation and logistics, healthcare, government and other industries to improve visibility and productivity across their operations.

The company’s portfolio includes barcode and label printers, barcode scanners, mobile computers, radio-frequency identification (RFID) readers and tags, machine-vision systems, fixed industrial scanners and related software.