10-Q · August 4, 2026
Zebra delivered a strong Q2, with revenue up 20.4% year over year to $1.557 billion, GAAP diluted EPS up to $4.85 from $2.19, and gross margin up 540 basis points to 53.0%. Both segments grew, with AVA producing 11.4%…
Earnings analysis · 10-Q
ZBRA earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Zebra delivered a strong third quarter, with $1.614 billion of revenue and $4.95 of non-GAAP diluted EPS, both above consensus and higher than the prior-year quarter. Growth was broad-based, led by 15.0% Connected…
Read full summary
Zebra delivered a strong third quarter, with $1.614 billion of revenue and $4.95 of non-GAAP diluted EPS, both above consensus and higher than the prior-year quarter. Growth was broad-based, led by 15.0% Connected Frontline organic growth, and nine-month free cash flow reached $661 million. The key offset was a 230-basis-point gross-margin decline to 45.7%, driven in part by memory costs, although management raised its outlook and expects fourth-quarter EPS of $5.00-$5.40.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.95
- Gross margin
- 45.7%
- Segment
- Connected Frontline organic growth: 15.0%; segment revenue breakdown by dollars was not disclosed in the provided filing text
- Segment
- Broad-based segment growth was reported, but individual segment revenue amounts were not disclosed
What stood out
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Revenue beat and continued growth
Third-quarter revenue was $1.614 billion, up from $1.56 billion in 2026 Q2 and $1.32 billion in 2025 Q3. Revenue exceeded the $1.568570464 billion consensus estimate by approximately 2.9%.
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EPS materially exceeded estimates
Non-GAAP diluted EPS was $4.95 versus the $4.77 consensus estimate, a 3.8% beat, and increased from $4.85 in 2026 Q2 and $1.97 in 2025 Q3.
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Connected Frontline led growth
Connected Frontline delivered 15.0% organic growth, supporting management’s characterization of performance as broad-based across segments.
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Cash generation remained strong
Nine-month free cash flow reached $661 million, while management’s outlook called for full-year free cash flow of at least $1 billion.
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Share repurchases continued
The company repurchased 229,206 shares during the quarter at an average price of $325.59, leaving $616 million available under repurchase programs.
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Controls remained effective
Disclosure controls were assessed as effective as of October 3, 2026, and management reported no changes in internal controls during the quarter that materially affected, or were reasonably likely to materially affect, reporting.
What to watch
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Memory costs pressured gross margin
Gross margin declined 230 basis points year over year to 45.7%, with memory costs identified in the earnings materials as a pressure. This reverses the 53.0% gross margin reported in 2026 Q2 and is the clearest operating headwind.
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Capital allocation and liquidity tradeoff
The company repurchased 229,206 shares for $74.6 million based on the disclosed average price of $325.59, while $616 million remained available under the program. Continued repurchases could limit liquidity available for debt reduction or other investments.
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Controls cannot provide absolute assurance
The filing states that internal controls provide reasonable, not absolute, assurance and may be circumvented through error, collusion, or management override. Management nevertheless assessed the controls as effective as of October 3, 2026.
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No material risk-factor updates
No material changes were reported to the risk factors from the December 31, 2025 Form 10-K, and no material changes in market risk were reported for the nine months ended October 3, 2026.
Management's outlook
Earnings materials cited fourth-quarter non-GAAP EPS of $5.00-$5.40, fourth-quarter sales growth of 10%-14%, adjusted EBITDA margin of approximately 22%, and full-year free cash flow of at least $1 billion. Absolute revenue guidance was not provided in the filing text.
Earlier filings 4
10-Q · May 12, 2026
Zebra Technologies reported a strong first quarter in 2026, exceeding revenue and EPS expectations with net sales of $1.495 billion and a diluted EPS of $2.72. This performance marks a 14.3% increase in revenue compared…
10-K · February 12, 2026
Zebra describes a strategy of expanding beyond traditional AIDC into end-to-end frontline solutions, using acquisitions and a re-segmentation (Connected Frontline and Asset Visibility & Automation) to accelerate…
10-Q · October 28, 2025
Zebra reported Q3 2025 net sales of $1,320 million and GAAP diluted EPS of $1.97. Revenue was up year-over-year and both segments expanded, but gross margin compressed slightly versus the prior-year quarter and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.