Zebra Technologies (ZBRA) Q3 2026 Earnings
How Did ZBRA Stock React to Q3 2026 Earnings?
Did ZBRA Beat Earnings? Q3 2026 Results
Yes. Zebra Technologies reported Q3 2026 earnings of $4.95 a share on Nov 3, 2026, beating the $4.91 consensus estimate by 0.9%. Revenue was $1.6B against a $1.6B estimate.
Zebra Technologies delivered a strong third-quarter 2026 performance, beating Wall Street expectations on both the top and bottom lines as broad-based demand for frontline automation drove results well ahead of forecasts. The company posted adjusted non-GAAP diluted EPS of $4.95, edging past the $4.91 consensus estimate by 0.89%, while revenue of $1.61 billion cleared the $1.57 billion forecast by 2.76% and rose 22.3% year over year. The single biggest driver of that growth was the Connected Frontline segment, where net sales surged 34.6% to $949 million, bolstered in part by the Elo Touch acquisition. Gross margin contracted 230 basis points to 45.7% due to higher memory component costs and business mix, though management held adjusted EBITDA margin steady at 21.6%. With analysts already debating Zebra's standing relative to industrial automation peers, the company reinforced its case by raising its full-year free cash flow outlook to at least $1 billion and guiding fourth-quarter non-GAAP diluted EPS to a range of $5.00 to $5.40.
- Broad-based demand as customers prioritize automating frontline operations
- Elo Touch acquisition contributed to double-digit growth (acquisitions added 8.9 points to consolidated growth)
- Organic net sales growth of 11.3%: Connected Frontline +15.0%, Asset Visibility & Automation +7.0%
- Pricing actions and operating leverage held adjusted EBITDA margin flat at 21.6%
- Gross margin pressured by higher memory component costs and business mix, partly offset by favorable foreign currency
- Lower income tax expense ($34M vs $58M) and reduced share count boosted EPS
“We delivered another record quarter underpinned by strong execution and broad-based demand trends with Elo Touch contributing to our double-digit growth as customers prioritize automating their frontline operations. Our efforts to strengthen memory supply, implement pricing actions and capture operating leverage enabled us to support our growth while maintaining adjusted EBITDA margin year-over-year.”
Zebra Technologies CEO, on the earnings call
What Is Zebra Technologies's Outlook?
Zebra raised its full-year outlook. Fourth-quarter guidance: - Sales growth of 10% to 14% year over year, including approximately 150 basis points of favorable foreign currency impact. - Adjusted EBITDA margin of approximately 22%. - Non-GAAP diluted EPS of $5.00 to $5.40, assuming an adjusted effective tax rate of approximately 19%. Full-year 2026 free cash flow is expected to be at least $1 billion.
ZBRA YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.6B | $1.3B | +22.3% |
| Gross Profit | $738.0M | $634.0M | +16.4% |
| Operating Income | $237.0M | $183.0M | +29.5% |
| Net Income | $164.0M | $101.0M | +62.4% |
ZBRA Revenue by Segment
When Does Zebra Technologies Report Next?
Figures from SEC filings and company reports. Not investment advice.