Earnings Releases·Nov 3, 2026, 9:24 AM ET

Zebra Technologies — Third Quarter 2026 Earnings Summary

Net sales rose 22.3% year-over-year to $1,614 million, with consolidated organic growth of 11.3%, while net income surged 62.4% to $164 million ($3.43 per share) and non-GAAP net income increased 19.7% to $237 million ($4.95 per share).
The company raised its full-year outlook, projecting Q4 2026 sales growth of 10% to 14% and non-GAAP EPS of $5.00 to $5.40, alongside a full-year free cash flow target of at least $1 billion.
Gross margin contracted 230 basis points to 45.7% due to higher memory component costs and business mix, though adjusted EBITDA margin remained flat at 21.6% with a 22.5% year-over-year increase to $349 million.
Share repurchases totaled $75 million in the quarter, bringing nine-month cumulative buybacks to $643 million, while the company maintains a strong balance sheet with $182 million in cash and $2,578 million in total debt.