Key Highlights
- Zebra Technologies delivered Q1 earnings per share of $4.75, marking an 18.2% increase from the prior year and surpassing analyst expectations of $4.26 by $0.49.
- Quarterly revenue reached $1.5 billion, reflecting 14.3% year-over-year growth and exceeding the Street consensus of $1.48 billion.
- The company’s adjusted EBITDA totaled $347 million, outperforming projections by 9% with a margin of 23.2%.
- Full-year 2026 EPS guidance was elevated to $18.50 at the midpoint, an increase from the previous $18.10 target.
- Shares of ZBRA surged approximately 14% during premarket hours, climbing to roughly $247.80 after the earnings announcement.
Zebra Technologies delivered impressive first-quarter results that propelled ZBRA shares up approximately 14% in premarket activity to around $247.80 — a significant leap from the prior session’s close of $216.96.
The technology company posted quarterly earnings of $4.75 per share, representing an 18.2% climb from $4.02 in the year-ago period. This figure topped analyst projections ranging from $4.25 to $4.26 by a solid $0.49.
Quarterly sales totaled $1.5 billion, marking a 14.3% year-over-year increase. The Street had anticipated $1.48 billion.
Zebra Technologies Corporation, ZBRA
Adjusted EBITDA reached $347 million, surpassing the $318.4 million consensus forecast — representing a 9% outperformance with a 23.2% margin.
The quarterly EPS figure also exceeded Zebra’s internal projection range of $4.05 to $4.35 per share, landing comfortably above the upper bound of the company’s expectations.
Full-Year Outlook Gets an Upgrade
Zebra elevated its full-year 2026 EPS forecast to approximately $18.50 at the midpoint — representing an increase from the previous $18.10 guidance and surpassing analyst consensus ranging from $17.82 to $17.96.
The company also raised its full-year 2026 revenue projection to $6.1 billion, up from the earlier $6 billion target. Analysts had been forecasting $6 billion.
For the second quarter of 2026, Zebra issued EPS guidance of $4.20 to $4.50, with the midpoint approximately aligned with analyst estimates of $4.14 to $4.20.
CEO Bill Burns highlighted momentum across critical sectors. “Our strong first quarter results demonstrate the durability of demand for our innovative technology, with organic growth across our segments and regions, led by strength in our manufacturing end market,” he stated.
Burns also pointed to e-commerce expansion, automation adoption, and Physical AI trends as favorable conditions supporting the remainder of the year.
The recently completed Elo Touch acquisition delivered “solid profitable growth” during the quarter as management begins realizing operational efficiencies.
Rebound in Progress After Challenging Period
The backdrop is important. ZBRA had faced headwinds leading into this earnings release. The stock was down 11% year to date and had declined roughly 28% over the trailing 12-month period entering Tuesday.
At its high point in early 2022, ZBRA traded near $600. The shares have been gradually recovering ground since then.
Revenue trends also illustrate a turnaround narrative. Zebra generated $5.8 billion in revenue during 2022. That figure contracted in both 2023 and 2024 before rebounding to $5.4 billion in 2025. The projected 2026 full-year revenue of $6.1 billion would surpass the 2022 peak.
Two-year annualized EPS expansion reached 37.9% — significantly outpacing the 13.2% revenue growth over the identical timeframe. A portion of that EPS outperformance stemmed from share repurchases, with the diluted share count declining 4.2% over two years.
Operating margin for the first quarter registered at 14.4%, unchanged year over year. Adjusted operating margin came in at 18.3%, down 2.8 percentage points from the comparable quarter last year, as expense growth outpaced revenue gains.
Free cash flow margin declined to 10.9% from 12.1% in the first quarter of the previous year.
Zebra garnered 11 upward EPS revisions and 2 downward adjustments in the 90-day window preceding this earnings report.
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