Zebra Technologies Corporation
Zebra Technologies Corporation 3 Overlook Point Lincolnshire, IL 60069 USA +1 847 634 6700 www.zebra.com
Strong growth across segments and regions reflects customer investment in automation and productivity
Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating workflows to deliver intelligent operations, today announced results for the third quarter ended October 3, 2026.
“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," said Bill Burns, Chief Executive Officer of Zebra Technologies. "These results reinforce our confidence in the durability of demand and the strength of our business model as we execute on our strategy to drive profitable growth."
"We are putting our strong cash generation and balance sheet to work, investing in growth while returning capital to shareholders," said Nathan Winters, Chief Financial Officer of Zebra Technologies. "We repurchased more than $640 million of shares through the first nine months of the year, reflecting our confidence in Zebra's long-term opportunity and our commitment to disciplined capital allocation." -1-
Net sales were $1,614 million compared to $1,320 million in the prior year. Net sales in the Connected Frontline ("CF") segment were $949 million compared to $705 million in the prior year. Asset Visibility & Automation ("AVA") segment net sales were $665 million compared to $615 million in the prior year. Consolidated organic net sales increased 11.3% year-over-year, with a 15.0% increase in the CF segment and a 7.0% increase in the AVA segment.
Gross profit was $738 million compared to $634 million in the prior year. Gross margin decreased to 45.7% compared to 48.0% in the prior year primarily due to increased memory component costs and business mix partially offset by favorable foreign currency. Adjusted gross margin was 46.0% compared to 48.2% in the prior year.
Operating expenses increased to $501 million from $451 million in the prior year primarily due to expenses associated with acquired businesses including amortization of intangible assets. Adjusted operating expenses increased to $413 million from $368 million in the prior year.
Net income was $164 million, or $3.43 per diluted share, compared to net income of $101 million, or $1.97 per diluted share, in the prior year. Non-GAAP net income increased to $237 million or $4.95 per diluted share, compared to $198 million, or $3.88 per diluted share for the prior year.
Adjusted EBITDA increased to $349 million, or 21.6% of adjusted net sales, compared to $285 million, or 21.6% of adjusted net sales in the prior year.
As of October 3, 2026, the Company had cash and cash equivalents of $182 million and total debt of $2,578 million.
For the first nine months of 2026, net cash provided by operating activities was $711 million and the Company invested $50 million in capital expenditures, resulting in free cash flow of $661 million. The Company also made share repurchases of $643 million.
Mr. Burns added, "We remain confident in the growth drivers supporting our business, and our ability to capture the opportunity ahead. We are driving operating productivity as we scale to meet the strong demand we are seeing for -2- our solutions. Together, these efforts support our increased full-year outlook and position us well for sustainable profitable growth as we continue to benefit from trends in automation and Physical AI."
The Company expects fourth quarter sales growth between 10% and 14% compared to the prior year. This expectation includes approximately 150 basis points favorable impact from foreign currency.
Adjusted EBITDA margin for the fourth quarter is expected to be approximately 22%. Non-GAAP diluted earnings per share are expected to be in the range of $5.00 to $5.40. This assumes an adjusted effective tax rate of approximately 19%.
The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of the most directly comparable forward-looking GAAP financial measure as discussed under the "Forward-Looking Statements" caption below. This would include items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Investors are invited to listen to a live webcast of Zebra’s conference call regarding the Company’s financial results. The conference call will be held today at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). To view the webcast, visit the investor relations section of the Company’s website at investors.zebra.com . The earnings presentation is available on the Company's website at the following link: Zebra's 3Q 2026 Earnings Presentation .
Zebra (NASDAQ: ZBRA) provides the foundation for intelligent operations with an award-winning portfolio of connected frontline, asset visibility and automation solutions which empower our customers to deploy AI on the frontline. Organizations globally across retail, manufacturing, transportation, logistics, healthcare, and other industries rely on us to deliver outcomes today while driving innovation for what’s next. Together with our partners, we create new ways of working that improve productivity and empower organizations to be better every day
This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company’s outlook. Actual results may differ from those expressed or implied in the company’s forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.
These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra’s industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra’s offerings and competitors' offerings, and the potential effects of emerging technologies and changes in customer requirements. The effect of global market conditions, and the availability of credit and capital markets volatility may have adverse effects on Zebra, its suppliers and its customers. In addition, natural disasters, man-made disasters, public health issues (including pandemics), and cybersecurity incidents may have negative effects on Zebra's business and results of operations. Zebra's ability to purchase sufficient materials, parts, and components, and ability to provide services, software and products to meet customer demand could negatively impact Zebra's results of operations and customer relationships. Profits and profitability will be affected by Zebra’s ability to control manufacturing and operating costs. Because of its debt, interest rates and financial market conditions may also have an adverse impact on results. -3- Foreign exchange rates, customs duties and trade policies may have an adverse effect on financial results because of the global nature of Zebra's business. The impacts of changes in foreign and domestic governmental policies, regulations, or laws, as well as the outcome of litigation or tax matters in which Zebra may be involved are other factors that could adversely affect Zebra's business and results of operations. The success of integrating acquisitions could also adversely affect profitability, reported results and the company’s competitive position in its industry. These and other factors could have an adverse effect on Zebra’s sales, gross profit margins and results of operations and increase the volatility of Zebra's financial results. When used in this release and documents referenced, the words “anticipate,” “believe,” “outlook,” and “expect” and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of certain risks, uncertainties and other factors that could adversely affect the Company’s future operations and results can be found in Zebra’s filings with the Securities and Exchange Commission, including the Company’s most recent Form 10-K and Form 10-Q.
This press release contains certain Non-GAAP financial measures, consisting of “Adjusted EBITDA,” “Adjusted EBITDA margin,” “adjusted gross margin,” “adjusted gross profit,” “adjusted net sales,” “adjusted operating expenses,” “adjusted operating income,” “EBITDA,” “free cash flow,” “non-GAAP diluted earnings per share,” “non-GAAP earnings per share,” “non-GAAP net income,” “organic net sales,” and “organic net sales growth.” Management presents these measures to focus on the on-going operations and believes it is useful to investors because they enable them to perform meaningful comparisons of past and present operating results. The company believes it is useful to present non-GAAP financial measures, which exclude certain significant items, as a means to understand the performance of its ongoing operations and how management views the business. Please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables and accompanying disclosures at the end of this press release for more detailed information regarding non-GAAP financial measures herein, including the items reflected in adjusted net earnings calculations. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.
The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis (including the information under “Outlook” above) where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred, are out of the company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share, the most directly comparable forward-looking GAAP financial measure. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
As a global company, Zebra's operating results reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which the company transacts change in value over time compared to the U.S. dollar; accordingly, the company presents certain organic growth financial information, which includes impacts of foreign currency translation, to provide a framework to assess how the company’s businesses performed excluding the impact of foreign currency exchange rate fluctuations. Foreign currency impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. dollar. This impact is calculated by translating current period results at the currency exchange rates used in the comparable prior year period as well as removing realized cash flow hedge gains and losses from both the current and prior year periods. The company believes these measures should be considered a supplement to and not in lieu of the company’s performance measures calculated in accordance with GAAP.
Contacts Investors Media Michael Steele, CFA, IRC Therese Van Ryne Vice President, Investor Relations Senior Director, External Communications Phone: + 1 847 518 6432 Phone: + 1 847 370 2317 InvestorRelations@zebra.com therese.vanryne@zebra.com
-4- The Zebra wordmark and logo are trademarks of Zebra Technologies Corp., registered in many jurisdictions worldwide. ©2026 Zebra Technologies Corp. and/or its affiliates. You may quote this release with attribution. -5-
October 3, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── -Unaudited Assets Current assets: Cash and cash equivalents $ 182 $ 125 Accounts receivable, net of allowances for doubtful accounts of $1 million each 1,025 801 as of October 3, 2026 and December 31, 2025 Inventories, net 851 729 Income tax receivable 76 31 Prepaid expenses and other current 141 110 assets Total Current assets 2,275 1,796 Property, plant and 348 353 equipment, net Right-of-use lease assets 180 166 Goodwill 4,698 4,727 Other intangibles, net 687 809 Deferred income taxes 393 414 Other long-term assets 239 237 Total Assets $ 8,820 $ 8,502 Liabilities and Stockholders’ Equity Current liabilities: Current portion of $ 2,077 $ 141 long-term debt Accounts payable 896 695 Accrued liabilities 553 558 Deferred revenue 438 446 Income taxes payable 47 12 Total Current liabilities 4,011 1,852 Long-term debt 494 2,361 Long-term lease 167 157 liabilities Deferred income taxes 27 32 Long-term deferred 414 396 revenue Other long-term 139 116 liabilities Total Liabilities 5,252 4,914 Stockholders’ Equity: Preferred stock, $.01 par value; authorized 10,000,000 — — shares; none issued Class A common stock, $.01 par value; authorized 150,000,000 1 1 shares; issued 72,151,857 shares Additional paid-in 926 814 capital Treasury stock at cost, 24,975,690 and 22,558,911 shares as of -3,131 -2,488 October 3, 2026 and December 31, 2025, respectively Retained earnings 5,811 5,279 Accumulated other -39 -18 comprehensive loss Total Stockholders’ 3,568 3,588 Equity Total Liabilities and Stockholders’ $ 8,820 $ 8,502 Equity
October 3, September 27, Nine Months Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net income $ 532 $ 349 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and 170 126 amortization Losses on long-term 15 11 investments Share-based 136 130 compensation Deferred income taxes 6 61 Gain on sale of -5 — business Other, net 1 2 Changes in operating assets and liabilities: Accounts receivable, -229 57 net Inventories, net -125 30 Other assets -21 16 Accounts payable 194 -115 Accrued liabilities 17 -49 Deferred revenue 9 16 Income taxes 8 -71 Other operating 3 -3 activities Net cash provided by operating 711 560 activities Cash flows from investing activities: Acquisition of business — -62 Proceeds from the sale 9 — of business Purchases of property, plant and -50 -56 equipment Proceeds from sale of long-term 1 1 investments Purchases of long-term — -4 investments Other investing 1 — activities Net cash used in -39 -121 investing activities Cash flows from financing activities: Payments of debt -138 — Proceeds from issuance 205 — of debt Payments for repurchases of common -643 -284 stock Net payments related to share-based -20 -15 compensation plans Change in unremitted cash collections -21 9 from servicing factored receivables Other financing — 4 activities Net cash used in -617 -286 financing activities Effect of exchange rate changes on cash 2 -1 and cash equivalents Net increase in cash and cash 57 152 equivalents Cash and cash equivalents at 125 901 beginning of period Cash and cash equivalents at end of $ 182 $ 1,053 period Supplemental disclosures of cash flow information: Income taxes paid $ 118 $ 124 Interest paid $ 99 $ 79
Certain prior period amounts included in Net cash provided by operating activities have been reclassified to conform with the current period presentation. -8-
Three Months Ended October 3, 2026 ────────────────────────────────────────────────────────────────────────────── CF AVA Consolidat… Consolida… Reported GAAP Net 34.6 % 8.1 % 22.3 % sales growth Adjustmen… Impact of foreign -2.4 % -1.3 % -2.1 % currency translati… Impact of acquisiti… -17.2 % 0.2 % -8.9 % and dispositi… Consolida… Organic 15.0 % 7.0 % 11.3 % Net sales growth Nine Months Ended October 3, 2026 CF AVA Consolidat… Reported GAAP Consolida… 27.1 % 9.6 % 19.0 % Net sales growth Adjustmen… Impact of foreign -2.3 % -1.9 % -2.2 % currency translati… Impact of acquisiti… -15.9 % — % -8.5 % and dispositi… Consolida… Organic 8.9 % 7.7 % 8.3 % Net sales growth
(1) Operating results reported in U.S. Dollars are affected by foreign currency exchange rate fluctuations. Foreign currency translation impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. Dollar. This impact is calculated by translating the current period results at the currency exchange rates used in the comparable prior year period as well as removing realized cash flow hedge gains and losses from both the current and prior year periods.
(2) For purposes of computing Organic Net sales growth, amounts attributable to business acquisitions or dispositions are excluded for twelve months following or preceding the respective acquisition or disposition, respectively. -9-
(1) Segment and Adjusted Gross profit excludes share-based compensation expense and business acquisition purchase accounting adjustments.
(2) Segment and Non-GAAP Operating income excludes share-based compensation expense, business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, exit and restructuring costs, as well as certain other non-recurring costs (impairment of goodwill and other intangible assets). -10-
(2) Represents adjustments to GAAP income tax expense commensurate with pre-tax non-GAAP adjustments (including the resulting impacts to U.S. BEAT/GILTI provisions), as well as adjustments to exclude the impacts of certain discrete income tax items and incorporate the anticipated annualized effects of current year tax planning. -11-
(1) Free cash flow, a non-GAAP measure, is defined as Net cash provided by (used in) operating activities in a period minus purchases of property, plant and equipment (capital expenditures) made in that period. -12-
Full text with the tables
Exhibit 99.1
Zebra Technologies Corporation
3 Overlook Point
Lincolnshire, IL 60069 USA
+1 847 634 6700
www.zebra.com
Zebra Technologies Announces Third Quarter 2026 Results
Strong growth across segments and regions reflects customer investment in
automation and productivity
Raises full year outlook
Lincolnshire, Ill., November 3, 2026 —
Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and
automating workflows to deliver intelligent operations, today announced results
for the third quarter ended October 3, 2026.
Third-Quarter Financial Highlights
• Net sales of $1,614 million; year-over-year increase of 22.3%
• Net income of $164 million and net income per diluted share of $3.43
• Non-GAAP diluted EPS increased year-over-year to $4.95
• Adjusted EBITDA increased year-over-year to $349 million
• Share repurchases of $75 million
“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," said Bill Burns, Chief Executive Officer of Zebra
Technologies. "These results reinforce our confidence in the durability of
demand and the strength of our business model as we execute on our strategy to
drive profitable growth."
"We are putting our strong cash generation and balance sheet to work, investing
in growth while returning capital to shareholders," said Nathan Winters, Chief
Financial Officer of Zebra Technologies. "We repurchased more than $640 million
of shares through the first nine months of the year, reflecting our confidence
in Zebra's long-term opportunity and our commitment to disciplined capital
allocation."
-1-
$ in millions,
except per share
amounts
Select reported
measures: 3Q26 3Q25 Change
──────────────────────────────────────────────────────────────────────────────
Net sales $ 1,614 $ 1,320 22.3 %
Gross profit 738 634 16.4 %
Gross margin 45.7 % 48.0 % (230) bps
Net income 164 101 62.4 %
Net income margin 10.2 % 7.7 % 250 bps
Net income per $ 3.43 $ 1.97 74.1 %
diluted share
Select Non-GAAP
measures:
Adjusted net $ 1,614 $ 1,320 22.3 %
sales
Organic net sales 11.3 %
growth
Adjusted gross 742 636 16.7 %
profit
Adjusted gross 46.0 % 48.2 % (220) bps
margin
Adjusted EBITDA 349 285 22.5 %
Adjusted EBITDA 21.6 % 21.6 % 0 bps
margin
Non-GAAP net $ 237 $ 198 19.7 %
income
Non-GAAP earnings $ 4.95 $ 3.88 27.6 %
per diluted share
Third Quarter 2026 Performance
Net sales were $1,614 million compared to $1,320 million in the prior year. Net
sales in the Connected Frontline ("CF") segment were $949 million compared to
$705 million in the prior year. Asset Visibility & Automation ("AVA") segment
net sales were $665 million compared to $615 million in the prior year.
Consolidated organic net sales increased 11.3% year-over-year, with a 15.0%
increase in the CF segment and a 7.0% increase in the AVA segment.
Gross profit was $738 million compared to $634 million in the prior year. Gross
margin decreased to 45.7% compared to 48.0% in the prior year primarily due to
increased memory component costs and business mix partially offset by favorable
foreign currency. Adjusted gross margin was 46.0% compared to 48.2% in the prior
year.
Operating expenses increased to $501 million from $451 million in the prior year
primarily due to expenses associated with acquired businesses including
amortization of intangible assets. Adjusted operating expenses increased to $413
million from $368 million in the prior year.
Net income was $164 million, or $3.43 per diluted share, compared to net income
of $101 million, or $1.97 per diluted share, in the prior year. Non-GAAP net
income increased to $237 million or $4.95 per diluted share, compared to $198
million, or $3.88 per diluted share for the prior year.
Adjusted EBITDA increased to $349 million, or 21.6% of adjusted net sales,
compared to $285 million, or 21.6% of adjusted net sales in the prior year.
Balance Sheet and Cash Flow
As of October 3, 2026, the Company had cash and cash equivalents of $182 million
and total debt of $2,578 million.
For the first nine months of 2026, net cash provided by operating activities was
$711 million and the Company invested $50 million in capital expenditures,
resulting in free cash flow of $661 million. The Company also made share
repurchases of $643 million.
Outlook
Mr. Burns added, "We remain confident in the growth drivers supporting our
business, and our ability to capture the opportunity ahead. We are driving
operating productivity as we scale to meet the strong demand we are seeing for
-2-
our solutions. Together, these efforts support our increased full-year outlook
and position us well for sustainable profitable growth as we continue to benefit
from trends in automation and Physical AI."
The Company expects fourth quarter sales growth between 10% and 14% compared to
the prior year. This expectation includes approximately 150 basis points
favorable impact from foreign currency.
Adjusted EBITDA margin for the fourth quarter is expected to be approximately
22%. Non-GAAP diluted earnings per share are expected to be in the range of
$5.00 to $5.40. This assumes an adjusted effective tax rate of approximately
19%.
Free Cash Flow for the full year is expected to be at least $1 billion.
The Company does not provide a reconciliation for non-GAAP estimates on a
forward-looking basis where it is unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information is not
available without unreasonable effort. This is due to the inherent difficulty of
forecasting the timing or amount of the most directly comparable forward-looking
GAAP financial measure as discussed under the "Forward-Looking Statements"
caption below. This would include items that have not yet occurred, are out of
the Company’s control and/or cannot be reasonably predicted, and that would
impact diluted net earnings per share. For the same reasons, the Company is
unable to address the probable significance of the unavailable information.
Forward-looking non-GAAP financial measures provided without the most directly
comparable GAAP financial measures may vary materially from the corresponding
GAAP financial measures.
Conference Call Notification
Investors are invited to listen to a live webcast of Zebra’s conference call
regarding the Company’s financial results. The conference call will be held
today at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). To view the webcast,
visit the investor relations section of the Company’s website at
investors.zebra.com . The earnings presentation is available on the Company's
website at the following link: Zebra's 3Q 2026 Earnings Presentation .
Who is Zebra Technologies?
Zebra (NASDAQ: ZBRA) provides the foundation for intelligent operations with an
award-winning portfolio of connected frontline, asset visibility and automation
solutions which empower our customers to deploy AI on the frontline.
Organizations globally across retail, manufacturing, transportation, logistics,
healthcare, and other industries rely on us to deliver outcomes today while
driving innovation for what’s next. Together with our partners, we create new
ways of working that improve productivity and empower organizations to be better
every day
.
Learn more at www.zebra.com.
Follow Zebra on our Blog, LinkedIn, Facebook, X, Instagram and YouTube .
Forward-Looking Statements
This press release contains forward-looking statements, as defined by the
Private Securities Litigation Reform Act of 1995, including, without limitation,
the statements regarding the company’s outlook. Actual results may differ from
those expressed or implied in the company’s forward-looking statements. These
statements represent estimates only as of the date they were made. Zebra
undertakes no obligation, other than as may be required by law, to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events, changed circumstances or any other reason after the
date of this release.
These forward-looking statements are based on current expectations, forecasts
and assumptions and are subject to the risks and uncertainties inherent in
Zebra’s industry, market conditions, general domestic and international economic
conditions, and other factors. These factors include customer acceptance of
Zebra’s offerings and competitors' offerings, and the potential effects of
emerging technologies and changes in customer requirements. The effect of global
market conditions, and the availability of credit and capital markets volatility
may have adverse effects on Zebra, its suppliers and its customers. In addition,
natural disasters, man-made disasters, public health issues (including
pandemics), and cybersecurity incidents may have negative effects on Zebra's
business and results of operations. Zebra's ability to purchase sufficient
materials, parts, and components, and ability to provide services, software and
products to meet customer demand could negatively impact Zebra's results of
operations and customer relationships. Profits and profitability will be
affected by Zebra’s ability to control manufacturing and operating costs.
Because of its debt, interest rates and financial market conditions may also
have an adverse impact on results.
-3-
Foreign exchange rates, customs duties and trade policies may have an adverse
effect on financial results because of the global nature of Zebra's business.
The impacts of changes in foreign and domestic governmental policies,
regulations, or laws, as well as the outcome of litigation or tax matters in
which Zebra may be involved are other factors that could adversely affect
Zebra's business and results of operations. The success of integrating
acquisitions could also adversely affect profitability, reported results and the
company’s competitive position in its industry. These and other factors could
have an adverse effect on Zebra’s sales, gross profit margins and results of
operations and increase the volatility of Zebra's financial results. When used
in this release and documents referenced, the words “anticipate,” “believe,”
“outlook,” and “expect” and similar expressions, as they relate to the Company
or its management, are intended to identify such forward-looking statements, but
are not the exclusive means of identifying these statements. Descriptions of
certain risks, uncertainties and other factors that could adversely affect the
Company’s future operations and results can be found in Zebra’s filings with the
Securities and Exchange Commission, including the Company’s most recent Form
10-K and Form 10-Q.
Use of Non-GAAP Financial Information
This press release contains certain Non-GAAP financial measures, consisting of
“Adjusted EBITDA,” “Adjusted EBITDA margin,” “adjusted gross margin,” “adjusted
gross profit,” “adjusted net sales,” “adjusted operating expenses,” “adjusted
operating income,” “EBITDA,” “free cash flow,” “non-GAAP diluted earnings per
share,” “non-GAAP earnings per share,” “non-GAAP net income,” “organic net
sales,” and “organic net sales growth.” Management presents these measures to
focus on the on-going operations and believes it is useful to investors because
they enable them to perform meaningful comparisons of past and present operating
results. The company believes it is useful to present non-GAAP financial
measures, which exclude certain significant items, as a means to understand the
performance of its ongoing operations and how management views the business.
Please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables
and accompanying disclosures at the end of this press release for more detailed
information regarding non-GAAP financial measures herein, including the items
reflected in adjusted net earnings calculations. These measures, however, should
not be construed as an alternative to any other measure of performance
determined in accordance with GAAP.
The company does not provide a reconciliation for non-GAAP estimates on a
forward-looking basis (including the information under “Outlook” above) where it
is unable to provide a meaningful or accurate calculation or estimation of
reconciling items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the timing or
amount of various items that have not yet occurred, are out of the company’s
control and/or cannot be reasonably predicted, and that would impact diluted net
earnings per share, the most directly comparable forward-looking GAAP financial
measure. For the same reasons, the company is unable to address the probable
significance of the unavailable information. Forward-looking non-GAAP financial
measures provided without the most directly comparable GAAP financial measures
may vary materially from the corresponding GAAP financial measures.
As a global company, Zebra's operating results reported in U.S. dollars are
affected by foreign currency exchange rate fluctuations because the underlying
foreign currencies in which the company transacts change in value over time
compared to the U.S. dollar; accordingly, the company presents certain organic
growth financial information, which includes impacts of foreign currency
translation, to provide a framework to assess how the company’s businesses
performed excluding the impact of foreign currency exchange rate fluctuations.
Foreign currency impact represents the difference in results that are
attributable to fluctuations in the currency exchange rates used to convert the
results for businesses where the functional currency is not the U.S. dollar.
This impact is calculated by translating current period results at the currency
exchange rates used in the comparable prior year period as well as removing
realized cash flow hedge gains and losses from both the current and prior year
periods. The company believes these measures should be considered a supplement
to and not in lieu of the company’s performance measures calculated in
accordance with GAAP.
Contacts
Investors Media
Michael Steele, CFA, IRC Therese Van Ryne
Vice President, Investor Relations Senior Director, External
Communications
Phone: + 1 847 518 6432 Phone: + 1 847 370 2317
InvestorRelations@zebra.com therese.vanryne@zebra.com
-4-
The Zebra wordmark and logo are trademarks of Zebra Technologies Corp.,
registered in many jurisdictions worldwide. ©2026 Zebra Technologies Corp.
and/or its affiliates. You may quote this release with attribution.
-5-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
October 3,
2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
-Unaudited
Assets
Current assets:
Cash and cash equivalents $ 182 $ 125
Accounts receivable, net
of allowances
for doubtful accounts of
$1 million each 1,025 801
as of October 3, 2026 and
December 31,
2025
Inventories, net 851 729
Income tax receivable 76 31
Prepaid expenses and
other current 141 110
assets
Total Current assets 2,275 1,796
Property, plant and 348 353
equipment, net
Right-of-use lease assets 180 166
Goodwill 4,698 4,727
Other intangibles, net 687 809
Deferred income taxes 393 414
Other long-term assets 239 237
Total Assets $ 8,820 $ 8,502
Liabilities and
Stockholders’ Equity
Current liabilities:
Current portion of $ 2,077 $ 141
long-term debt
Accounts payable 896 695
Accrued liabilities 553 558
Deferred revenue 438 446
Income taxes payable 47 12
Total Current liabilities 4,011 1,852
Long-term debt 494 2,361
Long-term lease 167 157
liabilities
Deferred income taxes 27 32
Long-term deferred 414 396
revenue
Other long-term 139 116
liabilities
Total Liabilities 5,252 4,914
Stockholders’ Equity:
Preferred stock, $.01 par
value;
authorized 10,000,000 — —
shares; none
issued
Class A common stock,
$.01 par value;
authorized 150,000,000 1 1
shares; issued
72,151,857 shares
Additional paid-in 926 814
capital
Treasury stock at cost,
24,975,690 and
22,558,911 shares as of -3,131 -2,488
October 3, 2026
and December 31, 2025,
respectively
Retained earnings 5,811 5,279
Accumulated other -39 -18
comprehensive loss
Total Stockholders’ 3,568 3,588
Equity
Total Liabilities and
Stockholders’ $ 8,820 $ 8,502
Equity
-6-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share data)
(Unaudited)
Three October Septemb… Nine October Septem…
Months 3, 27, Months 3, 27,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
sales:
Tangi… $ 1,370 $ 1,081 $ 3,917 $ 3,198
produ…
Servi…
and 244 239 749 723
softw…
Total
Net 1,614 1,320 4,666 3,921
sales
Cost
of
sales:
Tangi… 745 557 1,983 1,652
produ…
Servi…
and 131 129 378 374
softw…
Total
Cost 876 686 2,361 2,026
of
sales
Gross 738 634 2,305 1,895
profit
Opera…
expen…
Selli…
and 183 159 556 478
marke…
Resea…
and 158 146 482 441
devel…
Gener…
and 122 111 363 324
admin…
Amort…
of 37 25 111 74
intan…
assets
Acqui…
and 1 10 4 17
integ…
costs
Exit
and — — 16 —
restr…
costs
Total
Opera… 501 451 1,532 1,334
expen…
Opera… 237 183 773 561
income
Other
(loss)
incom…
net:
Forei…
excha… -3 1 -5 -15
(loss)
gain
Inter…
expen… -35 -23 -107 -71
net
Other
expen… -1 -2 -11 -13
net
Total
Other -39 -24 -123 -99
expen…
net
Income
before 198 159 650 462
income
tax
Income
tax 34 58 118 113
expen…
Net $ 164 $ 101 $ 532 $ 349
income
Basic
earni… $ 3.47 $ 1.98 $ 11.08 $ 6.83
per
share
Dilut…
earni… $ 3.43 $ 1.97 $ 10.97 $ 6.78
per
share
-7-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
October 3, September 27,
Nine Months Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows from
operating activities:
Net income $ 532 $ 349
Adjustments to
reconcile net income to
net cash provided by
operating
activities:
Depreciation and 170 126
amortization
Losses on long-term 15 11
investments
Share-based 136 130
compensation
Deferred income taxes 6 61
Gain on sale of -5 —
business
Other, net 1 2
Changes in operating
assets and
liabilities:
Accounts receivable, -229 57
net
Inventories, net -125 30
Other assets -21 16
Accounts payable 194 -115
Accrued liabilities 17 -49
Deferred revenue 9 16
Income taxes 8 -71
Other operating 3 -3
activities
Net cash provided by
operating 711 560
activities
Cash flows from
investing activities:
Acquisition of business — -62
Proceeds from the sale 9 —
of business
Purchases of property,
plant and -50 -56
equipment
Proceeds from sale of
long-term 1 1
investments
Purchases of long-term — -4
investments
Other investing 1 —
activities
Net cash used in -39 -121
investing activities
Cash flows from
financing activities:
Payments of debt -138 —
Proceeds from issuance 205 —
of debt
Payments for
repurchases of common -643 -284
stock
Net payments related to
share-based -20 -15
compensation plans
Change in unremitted
cash collections -21 9
from servicing factored
receivables
Other financing — 4
activities
Net cash used in -617 -286
financing activities
Effect of exchange rate
changes on cash 2 -1
and cash equivalents
Net increase in cash
and cash 57 152
equivalents
Cash and cash
equivalents at 125 901
beginning
of period
Cash and cash
equivalents at end of $ 182 $ 1,053
period
Supplemental
disclosures of cash
flow
information:
Income taxes paid $ 118 $ 124
Interest paid $ 99 $ 79
Certain prior period amounts included in Net cash provided by operating
activities have been reclassified to conform with the current period
presentation.
-8-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
RECONCILIATION OF ORGANIC NET SALES GROWTH
(Unaudited)
Three Months
Ended
October 3,
2026
──────────────────────────────────────────────────────────────────────────────
CF AVA Consolidat…
Consolida…
Reported
GAAP Net 34.6 % 8.1 % 22.3 %
sales
growth
Adjustmen…
Impact of
foreign -2.4 % -1.3 % -2.1 %
currency
translati…
Impact of
acquisiti… -17.2 % 0.2 % -8.9 %
and
dispositi…
Consolida…
Organic 15.0 % 7.0 % 11.3 %
Net sales
growth
Nine Months
Ended
October 3,
2026
CF AVA Consolidat…
Reported
GAAP
Consolida… 27.1 % 9.6 % 19.0 %
Net sales
growth
Adjustmen…
Impact of
foreign -2.3 % -1.9 % -2.2 %
currency
translati…
Impact of
acquisiti… -15.9 % — % -8.5 %
and
dispositi…
Consolida…
Organic 8.9 % 7.7 % 8.3 %
Net sales
growth
(1) Operating results reported in U.S. Dollars are affected by foreign currency
exchange rate fluctuations. Foreign currency translation impact represents the
difference in results that are attributable to fluctuations in the currency
exchange rates used to convert the results for businesses where the functional
currency is not the U.S. Dollar. This impact is calculated by translating the
current period results at the currency exchange rates used in the comparable
prior year period as well as removing realized cash flow hedge gains and losses
from both the current and prior year periods.
(2) For purposes of computing Organic Net sales growth, amounts attributable to
business acquisitions or dispositions are excluded for twelve months following
or preceding the respective acquisition or disposition, respectively.
-9-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN AND OPERATING INCOME
($ In millions)
(Unaudited)
T… O… S…
M… 3, 2…
E… 2… 2…
──────────────────────────────────────────────────────────────────────────────
CF A… C… … … …
…
…
… $ 9… $ 6… $ 1… $ 7… $ 6… $ 1…
…
…
… 4… 3… 7… 3… 3… 6…
…
… 4… % 4… % 4… % 4… % 5… % 4… %
…
… 1… 1… 2… 1… 1… 1…
…
…
…
… $ 9… $ 6… $ 1… $ 7… $ 6… $ 1…
…
…
… 4… 3… 7… 3… 3… 6…
…
…
… 4… % 4… % 4… % 4… % 5… % 4… %
…
…
… 1… 1… 3… 1… 1… 2…
…
N…
M…
E…
O… …
3, …
2… …
CF A… C… … … …
…
…
… $ 2… $ 1… $ 4… $ 2… $ 1… $ 3…
…
…
… 1… 1… 2… 9… 9… 1…
…
… 4… % 5… % 4… % 4… % 5… % 4… %
…
… 5… 5… 7… 4… 3… 5…
…
…
…
… $ 2… $ 1… $ 4… $ 2… $ 1… $ 3…
…
…
… 1… 1… 2… 9… 9… 1…
…
…
… 4… % 5… % 4… % 4… % 5… % 4… %
…
…
… 5… 5… 1… 4… 3… 7…
…
(1) Segment and Adjusted Gross profit excludes share-based compensation expense
and business acquisition purchase accounting adjustments.
(2) Segment and Non-GAAP Operating income excludes share-based compensation
expense, business acquisition purchase accounting adjustments, amortization of
intangible assets, acquisition and integration costs, exit and restructuring
costs, as well as certain other non-recurring costs (impairment of goodwill and
other intangible assets).
-10-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME
($ In millions, except share data)
(Unaudited)
Thr… Oct… Sep… Nine Oct… Sep…
Mon… 3, 27, Mon… 3, 27,
End… 2026 2025 End… 2026 2025
──────────────────────────────────────────────────────────────────────────────
GA…
Net $ 164 $ 101 $ 532 $ 349
in…
Ad…
to
Co…
of
sa…
Pu…
ac… — — 5 —
ad…
Sh… 4 2 15 9
co…
To…
ad…
to 4 2 20 9
Co…
of
sa…
Ad…
to
Op…
ex…
Am…
of 37 25 111 74
in…
as…
Ac…
and 1 10 4 17
in…
co…
Sh… 50 48 144 131
co…
Ex…
and — — 16 —
re…
co…
To…
ad…
to 88 83 275 222
Op…
ex…
Ad…
to
Ot…
ex…
ne…
Am…
of
de…
is… 1 1 3 2
co…
and
di…
Lo…
on — 1 15 11
lo…
in…
Fo…
ex… 3 -1 5 15
lo…
Ga…
on
sa… — — -5 —
of
bu…
Ot…
ad…
to — — -3 —
Ot…
ex…
net
To…
ad…
to 4 1 15 28
Ot…
ex…
net
In…
tax
ef…
of
ad…
Re…
in… 34 58 118 113
tax
ex…
Ad…
in… -57 -47 -183 -129
tax
To…
ad…
to -23 11 -65 -16
in…
tax
To… 73 97 245 243
ad…
No…
Net $ 237 $ 198 $ 777 $ 592
in…
GA…
ea…
per
sh…
Ba… $ 3.47 $ 1.98 $ 11.… $ 6.83
Di… $ 3.43 $ 1.97 $ 10.… $ 6.78
No…
ea…
per
sh…
Ba… $ 5.01 $ 3.90 $ 16.… $ 11.…
Di… $ 4.95 $ 3.88 $ 16.… $ 11.…
Ba…
we…
av… 47,… 50,… 48,… 51…
sh…
ou…
Di…
we…
av…
and 47,… 51,… 48,… 51…
eq…
sh…
ou…
(1) Presented on a pre-tax basis.
(2) Represents adjustments to GAAP income tax expense commensurate with pre-tax
non-GAAP adjustments (including the resulting impacts to U.S. BEAT/GILTI
provisions), as well as adjustments to exclude the impacts of certain discrete
income tax items and incorporate the anticipated annualized effects of current
year tax planning.
-11-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATION TO EBITDA
($ In millions)
(Unaudited)
Three Octo… Septe… Nine Octob… Sept…
Months 3, 27, Mont… 3, 27,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
Net $ 164 $ 101 $ 532 $ 349
inco…
Add
back:
Depr…
(exc…
exit 20 17 59 52
and
rest…
Amor…
of 37 25 111 74
inta…
asse…
Total
Other 39 24 123 99
expe…
net
Inco…
tax 34 58 118 113
expe…
EBIT… 294 225 943 687
(Non…
Adju…
to
Cost
of
sales
Purc…
acco… — — 5 —
adju…
Shar… 4 2 15 9
comp…
Total
adju…
to 4 2 20 9
Cost
of
sales
Adju…
to
Oper…
expe…
Acqu…
and 1 10 4 17
inte…
costs
Shar… 50 48 144 131
comp…
Exit
and — — 16 —
rest…
costs
Total
adju…
to 51 58 164 148
Oper…
expe…
Total
adju… 55 60 184 157
to
EBIT…
Adju…
EBIT… $ 349 $ 285 $ 1,127 $ 844
(Non…
Adju…
EBIT… 21.6 % 21.6 % 24.2 % 21.5 %
marg…
(Non…
FREE CASH FLOW
October 3, September 27,
Nine Months Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash provided by
operating $ 711 $ 560
activities
Less:
Purchases of property, -50 -56
plant and
equipment
Free cash flow $ 661 $ 504
(Non-GAAP)(1)
(1) Free cash flow, a non-GAAP measure, is defined as Net cash provided by (used
in) operating activities in a period minus purchases of property, plant and
equipment (capital expenditures) made in that period.
-12-