Key Takeaways
- Zebra Technologies delivered first-quarter earnings per share of $4.75, marking an 18.2% increase from the previous year and surpassing analyst expectations of $4.26 by $0.49.
- Quarterly revenue reached $1.5 billion, representing a 14.3% year-over-year increase and exceeding the consensus forecast of $1.48 billion.
- The company’s adjusted EBITDA of $347 million topped estimates by 9%, achieving a margin of 23.2%.
- Full-year 2026 EPS projections were upgraded to $18.50 at the midpoint, an increase from the previous forecast of $18.10.
- Shares of ZBRA surged approximately 14% in premarket activity, climbing to roughly $247.80 after the earnings announcement.
Zebra Technologies delivered impressive first-quarter results that propelled ZBRA stock approximately 14% higher in premarket trading to around $247.80 — a significant jump from the previous closing price of $216.96.
The technology company disclosed quarterly earnings of $4.75 per share, representing an 18.2% climb from $4.02 in the year-ago period. This figure exceeded Wall Street’s consensus range of $4.25 to $4.26 by a solid $0.49.
Quarterly sales totaled $1.5 billion, marking a 14.3% year-over-year expansion. This surpassed the analyst projection of $1.48 billion.
Zebra Technologies Corporation, ZBRA
Adjusted EBITDA reached $347 million, surpassing the $318.4 million estimate — representing a 9% outperformance with a margin of 23.2%.
The first-quarter earnings figure also exceeded Zebra’s own projected range of $4.05 to $4.35 per share, landing at the upper end of the company’s expectations.
Company Boosts Full-Year Projections
Zebra elevated its full-year 2026 earnings per share forecast to approximately $18.50 at the midpoint — an increase from the previous projection of $18.10 and above analyst consensus estimates ranging from $17.82 to $17.96.
The company’s full-year 2026 revenue outlook was raised to $6.1 billion, up from the earlier $6 billion projection. Analysts had been modeling $6 billion in sales.
For the second quarter of 2026, Zebra provided EPS guidance of $4.20 to $4.50, with the midpoint approximately aligned with analyst estimates of $4.14 to $4.20.
Chief Executive Officer Bill Burns highlighted strength across major customer segments. “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 referenced e-commerce expansion, automation investments, and Physical AI trends as positive factors supporting growth throughout the remainder of the year.
The recently completed Elo Touch acquisition delivered “solid profitable growth” during the quarter as the company begins realizing integration benefits.
Recovery Continues After Challenging Period
The broader picture is important to consider. ZBRA had faced headwinds prior to this earnings release. Shares were down 11% year to date and had declined roughly 28% over the trailing 12-month period entering Tuesday’s report.
At its 2022 peak, ZBRA traded near $600 per share. The stock has been gradually recovering since then.
Revenue trends also reflect a turnaround narrative. Zebra generated $5.8 billion in revenue during 2022. That number declined through both 2023 and 2024 before rebounding to $5.4 billion in 2025. The raised 2026 full-year projection of $6.1 billion would surpass the 2022 peak.
Two-year annualized earnings per share growth registered at 37.9% — significantly outpacing the 13.2% revenue growth during the same timeframe. A portion of the EPS outperformance stemmed from share repurchases, with the diluted share count decreasing 4.2% over the two-year span.
First-quarter operating margin stood at 14.4%, unchanged from the prior year. Adjusted operating margin reached 18.3%, declining 2.8 percentage points compared to the same quarter last year, as expense growth exceeded revenue expansion.
Free cash flow margin decreased to 10.9% from 12.1% in the first quarter of the previous year.
In the 90 days preceding the earnings report, Zebra received 11 upward EPS estimate revisions and 2 downward adjustments.
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