Zebra Technologies (NASDAQ:ZBRA) Releases Earnings Results, Beats Expectations By $0.06 EPS

Zebra Technologies (NASDAQ:ZBRA) issued its earnings results 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. Zebra Technologies had a net margin of 9.80% and a return on equity of 23.94%. The business had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.57 billion. During the same period in the previous year, the company earned $3.88 earnings per share. The business’s revenue for the quarter was up 22.3% compared to the same quarter last year.

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 Trading Up 0.9%

Zebra Technologies stock opened at $332.44 on Thursday. Zebra Technologies has a 1 year low of $199.05 and a 1 year high of $392.78. The firm’s 50 day moving average price is $366.15 and its 200-day moving average price is $281.61. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.57 and a quick ratio of 0.33. The stock has a market cap of $15.83 billion, a P/E ratio of 26.83 and a beta of 1.61.

Zebra Technologies News Summary

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

• Positive Sentiment: Third-quarter adjusted EPS of $4.95 topped estimates of about $4.89, while revenue rose 22.3% year over year to $1.61 billion, ahead of forecasts. Management cited demand for mobile computing and automation and raised its 2026 outlook. Zacks earnings call coverage
• Positive Sentiment: Barclays raised its price target to $432 from $416 and kept an Overweight rating; CFRA also upgraded the stock to Buy from Hold. Barclays analyst update
• Neutral Sentiment: Analyst views were mixed: Morgan Stanley lifted its target to $380 but maintained Equal Weight, while BNP Paribas Exane trimmed its target to $455 and retained Outperform. Morgan Stanley analyst update
• Negative Sentiment: Despite the Q3 beat, investors focused on a disappointing fourth-quarter outlook and rising memory costs, with concerns that margin pressure could continue into 2027. These concerns triggered a sharp selloff after the results. Outlook and share reaction
• Negative Sentiment: Citigroup lowered its target to $398 from $400 with a Neutral rating, and Truist cut its target to $375 from $378 while maintaining Hold. Truist analyst update

Wall Street Analyst Weigh In

A number of analysts have commented on ZBRA shares. Morgan Stanley lifted their target price on Zebra Technologies from $360.00 to $380.00 and gave the stock an “equal weight” rating in a report on Wednesday. Wolfe Research reaffirmed an “outperform” rating and set a $317.00 price target on shares of Zebra Technologies in a report on Thursday, July 9th. Citigroup reduced their price objective on Zebra Technologies from $400.00 to $398.00 and set a “neutral” rating for the company in a research report on Wednesday. UBS Group reissued a “buy” rating on shares of Zebra Technologies in a research report on Wednesday, August 5th. Finally, Needham & Company LLC boosted their price target on Zebra Technologies from $410.00 to $435.00 and gave the company a “buy” rating in a research note on Tuesday, September 15th. Ten research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Zebra Technologies currently has an average rating of “Moderate Buy” and a consensus target price of $388.67.

Insiders Place Their Bets

In related news, Director Linda Connly sold 500 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $377.68, for a total transaction of $188,840.00. Following the sale, the director owned 3,708 shares of the company’s stock, valued at $1,400,437.44. This represents a 11.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Michael Cho sold 3,500 shares of Zebra Technologies stock in a transaction on Friday, August 7th. The stock was 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 directly owned 5,170 shares of the company’s stock, valued at $1,939,784. The trade was a 40.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.91% of the company’s stock.

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.