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Zebra Technologies Announces First-Quarter 2026 Results

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Delivers strong first-quarter 2026 performance with broad-based growth across segments and regions

Increases outlook for the full year 2026

LINCOLNSHIRE, Ill.--(BUSINESS WIRE)-- Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating workflows to deliver intelligent operations, today announced results for the first quarter ended April 4, 2026.

First-Quarter Financial Highlights

  • Net sales of $1,495 million; year-over-year increase of 14.3%
  • Net income of $135 million and net income per diluted share of $2.72
  • Non-GAAP diluted EPS increased year-over-year to $4.75
  • Adjusted EBITDA increased year-over-year to $347 million
  • Share repurchases of $300 million

“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. Elo Touch also contributed solid profitable growth as we begin to drive synergies," said Bill Burns, Chief Executive Officer of Zebra Technologies. "These results underscore the value Zebra delivers as the foundation for intelligent operations across the frontline, helping customers operate more efficiently and effectively."

"We are building on our track record of value creation for shareholders with $300 million of share repurchases in each of the past two quarters, supported by our strong balance sheet and cash flow," said Nathan Winters, Chief Financial Officer of Zebra Technologies. "Our results reflect our focus on profitable growth, operating discipline and margin expansion, and we remain confident in our ability to support customer demand while delivering consistent performance in a dynamic environment."

$ in millions, except per share amounts

 

1Q26

 

 

1Q25

 

Change

Select reported measures:

 

 

 

Net sales

$

1,495

 

$

1,308

 

14.3

%

Gross profit

 

742

 

 

645

 

15.0

%

Gross margin

 

49.6

%

 

49.3

%

30 bps

Net income

 

135

 

 

136

 

(0.7

%)

Net income margin

 

9.0

%

 

10.4

%

(140) bps

Net income per diluted share

$

2.72

 

$

2.62

 

3.8

%

 

 

 

 

Select Non-GAAP measures:

 

 

 

Adjusted net sales

$

1,495

 

$

1,308

 

14.3

%

Organic net sales growth

 

 

4.3

%

Adjusted gross profit

 

753

 

 

649

 

16.0

%

Adjusted gross margin

 

50.4

%

 

49.6

%

80 bps

Adjusted EBITDA

 

347

 

 

292

 

18.8

%

Adjusted EBITDA margin

 

23.2

%

 

22.3

%

90 bps

Non-GAAP net income

$

235

 

$

208

 

13.0

%

Non-GAAP earnings per diluted share

$

4.75

 

$

4.02

 

18.2

%

Net sales were $1,495 million in the first quarter of 2026 compared to $1,308 million in the prior year. Net sales in the Connected Frontline ("CF") segment were $825 million in the first quarter of 2026 compared to $684 million in the prior year. Asset Visibility & Automation ("AVA") segment net sales were $670 million in the first quarter of 2026 compared to $624 million in the prior year. Consolidated organic net sales for the first quarter of 2026 increased 4.3% year-over-year, with a 3.8% increase in the CF segment and a 4.8% increase in the AVA segment.

First quarter 2026 gross profit was $742 million compared to $645 million in the prior year. Gross margin increased to 49.6% for the first quarter of 2026 compared to 49.3% in the prior year primarily due to favorable foreign currency exchange and business mix, and productivity initiatives. Adjusted gross margin was 50.4% in the first quarter of 2026 compared to 49.6% in the prior year.

Operating expenses increased to $527 million in the first quarter of 2026 from $450 million in the prior year primarily due to expenses associated with acquired businesses including amortization of intangible assets. Adjusted operating expenses increased to $425 million in the first quarter of 2026 from $374 million in the prior year.

Net income for the first quarter of 2026 was $135 million, or $2.72 per diluted share, compared to net income of $136 million, or $2.62 per diluted share, in the prior year. Non-GAAP net income increased to $235 million for the first quarter of 2026, or $4.75 per diluted share, compared to $208 million, or $4.02 per diluted share, for the prior year.

Adjusted EBITDA for the first quarter of 2026 increased to $347 million, or 23.2% of adjusted net sales, compared to $292 million, or 22.3% of adjusted net sales in the prior year due to higher gross margin and lower adjusted operating expense as a percentage of sales.

Balance Sheet and Cash Flow

As of April 4, 2026, the Company had cash and cash equivalents of $114 million and total debt of $2,660 million.

For the first three months of 2026, net cash provided by operating activities was $176 million and the Company invested $13 million in capital expenditures, resulting in free cash flow of $163 million. The Company also made share repurchases of $300 million.

Outlook

Mr. Burns added, "We are seeing continued momentum into the second quarter, supporting our increased outlook for the full year. Zebra's integrated portfolio of solutions is a key differentiator, enabling customers to connect data, assets and workflows to drive visibility and productivity. As e-commerce, automation and Physical AI trends accelerate, we are well positioned to drive profitable growth, build on our market leadership and innovation, and strengthen our financial position to deliver long-term shareholder value."

Second Quarter 2026

The Company expects second quarter sales growth between 14% and 17% compared to the prior year. This expectation includes approximately 10.5 points of favorable net impact from business acquisitions and foreign currency.

Adjusted EBITDA margin for the second quarter is expected to be slightly higher than 21%. Non-GAAP diluted earnings per share are expected to be in the range of $4.20 to $4.50. This assumes an adjusted effective tax rate of approximately 19%.

Full Year 2026

The Company expects full year sales growth between 10% and 14% compared to the prior year. This expectation includes approximately 7 points of favorable net impact from business acquisitions and foreign currency.

Adjusted EBITDA margin for the full year is expected to be approximately 22%. Non-GAAP diluted earnings per share are expected to be in the range of $18.30 to $18.70. This assumes an adjusted effective tax rate of approximately 19%.

Free Cash Flow for the full year is expected to be greater than $900 million.

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.

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. 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.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)

 

 

April 4,
2026

 

December 31,
2025

 

(Unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

114

 

 

$

125

 

Accounts receivable, net of allowances for doubtful accounts of $1 million each as of April 4, 2026 and December 31, 2025

 

733

 

 

 

801

 

Inventories, net

 

692

 

 

 

729

 

Income tax receivable

 

30

 

 

 

31

 

Prepaid expenses and other current assets

 

126

 

 

 

110

 

Total Current assets

 

1,695

 

 

 

1,796

 

Property, plant and equipment, net

 

350

 

 

 

353

 

Right-of-use lease assets

 

170

 

 

 

166

 

Goodwill

 

4,709

 

 

 

4,727

 

Other intangibles, net

 

765

 

 

 

809

 

Deferred income taxes

 

410

 

 

 

414

 

Other long-term assets

 

233

 

 

 

237

 

Total Assets

$

8,332

 

 

$

8,502

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

264

 

 

$

141

 

Accounts payable

 

581

 

 

 

695

 

Accrued liabilities

 

459

 

 

 

558

 

Deferred revenue

 

434

 

 

 

446

 

Income taxes payable

 

25

 

 

 

12

 

Total Current liabilities

 

1,763

 

 

 

1,852

 

Long-term debt

 

2,387

 

 

 

2,361

 

Long-term lease liabilities

 

158

 

 

 

157

 

Deferred income taxes

 

32

 

 

 

32

 

Long-term deferred revenue

 

398

 

 

 

396

 

Other long-term liabilities

 

124

 

 

 

116

 

Total Liabilities

 

4,862

 

 

 

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 shares; issued 72,151,857 shares

 

1

 

 

 

1

 

Additional paid-in capital

 

866

 

 

 

814

 

Treasury stock at cost, 23,768,847 and 22,558,911 shares as of April 4, 2026 and December 31, 2025, respectively

 

(2,787

)

 

 

(2,488

)

Retained earnings

 

5,414

 

 

 

5,279

 

Accumulated other comprehensive loss

 

(24

)

 

 

(18

)

Total Stockholders’ Equity

 

3,470

 

 

 

3,588

 

Total Liabilities and Stockholders’ Equity

$

8,332

 

 

$

8,502

 

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share data)

(Unaudited)

 

 

Three Months Ended

 

April 4,
2026

 

March 29,
2025

Net sales:

 

 

 

Tangible products

$

1,231

 

 

$

1,062

 

Services and software

 

264

 

 

 

246

 

Total Net sales

 

1,495

 

 

 

1,308

 

Cost of sales:

 

 

 

Tangible products

 

623

 

 

 

542

 

Services and software

 

130

 

 

 

121

 

Total Cost of sales

 

753

 

 

 

663

 

Gross profit

 

742

 

 

 

645

 

Operating expenses:

 

 

 

Selling and marketing

 

189

 

 

 

161

 

Research and development

 

165

 

 

 

151

 

General and administrative

 

127

 

 

 

111

 

Amortization of intangible assets

 

37

 

 

 

24

 

Acquisition and integration costs

 

1

 

 

 

3

 

Exit and restructuring costs

 

8

 

 

 

 

Total Operating expenses

 

527

 

 

 

450

 

Operating income

 

215

 

 

 

195

 

Other (loss) income, net:

 

 

 

Foreign exchange loss

 

 

 

 

(5

)

Interest expense, net

 

(37

)

 

 

(23

)

Other expense, net

 

(11

)

 

 

(2

)

Total Other expense, net

 

(48

)

 

 

(30

)

Income before income tax

 

167

 

 

 

165

 

Income tax expense

 

32

 

 

 

29

 

Net income

$

135

 

 

$

136

 

Basic earnings per share

$

2.74

 

 

$

2.64

 

Diluted earnings per share

$

2.72

 

 

$

2.62

 

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

Three Months Ended

 

April 4,
2026

 

March 29,
2025

Cash flows from operating activities:

 

 

 

Net income

$

135

 

 

$

136

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

56

 

 

 

41

 

Loss on sale of investments

 

15

 

 

 

 

Share-based compensation

 

58

 

 

 

51

 

Deferred income taxes

 

 

 

 

(23

)

Gain on sale of business

 

(5

)

 

 

 

Other, net

 

1

 

 

 

1

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

67

 

 

 

84

 

Inventories, net

 

34

 

 

 

15

 

Other assets

 

(12

)

 

 

3

 

Accounts payable

 

(119

)

 

 

(76

)

Accrued liabilities

 

(67

)

 

 

(110

)

Deferred revenue

 

(11

)

 

 

16

 

Income taxes

 

24

 

 

 

42

 

Other operating activities

 

 

 

 

(2

)

Net cash provided by operating activities

 

176

 

 

 

178

 

Cash flows from investing activities:

 

 

 

Acquisition of business

 

 

 

 

(62

)

Proceeds from the sale of business

 

9

 

 

 

 

Purchases of property, plant and equipment

 

(13

)

 

 

(20

)

Proceeds from sale of long-term investments

 

1

 

 

 

 

Other investing activities

 

1

 

 

 

 

Net cash used in investing activities

 

(2

)

 

 

(82

)

Cash flows from financing activities:

 

 

 

Payments of debt

 

(37

)

 

 

 

Proceeds from issuance of debt

 

186

 

 

 

 

Payments for repurchases of common stock

 

(300

)

 

 

(125

)

Net payments related to share-based compensation plans

 

(5

)

 

 

(1

)

Change in unremitted cash collections from servicing factored receivables

 

(29

)

 

 

2

 

Other financing activities

 

 

 

 

5

 

Net cash used in financing activities

 

(185

)

 

 

(119

)

Effect of exchange rate changes on cash and cash equivalents

 

 

 

 

1

 

Net decrease in cash and cash equivalents

 

(11

)

 

 

(22

)

Cash and cash equivalents at beginning of period

 

125

 

 

 

901

 

Cash and cash equivalents at end of period

$

114

 

 

$

879

 

Supplemental disclosures of cash flow information:

 

 

 

Income taxes paid

$

15

 

 

$

9

 

Interest paid

$

26

 

 

$

16

 

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF ORGANIC NET SALES GROWTH

(Unaudited)

 

 

Three Months Ended

 

April 4, 2026

 

CF

 

AVA

 

Consolidated

Consolidated Reported GAAP Net sales growth

20.6

%

 

7.4

%

 

14.3

%

Adjustments:

 

 

 

 

 

Impact of foreign currency translations (1)

(2.1

)%

 

(2.2

)%

 

(2.1

)%

Impact of acquisitions (2)

(14.7

)%

 

(0.4

)%

 

(7.9

)%

Consolidated Organic Net sales growth

3.8

%

 

4.8

%

 

4.3

%

(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.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN AND OPERATING INCOME

($ In millions)

(Unaudited)

 

 

Three Months Ended

 

April 4, 2026

 

March 29, 2025

 

CF

 

AVA

 

Consolidated

 

CF

 

AVA

 

Consolidated

GAAP

 

 

 

 

 

 

 

 

 

 

 

Reported Net sales

$

825

 

 

$

670

 

 

$

1,495

 

 

$

684

 

 

$

624

 

 

$

1,308

 

Reported Gross profit (1)

 

405

 

 

 

348

 

 

 

742

 

 

 

333

 

 

 

316

 

 

 

645

 

Gross Margin

 

49.1

%

 

 

51.9

%

 

 

49.6

%

 

 

48.7

%

 

 

50.6

%

 

 

49.3

%

Operating Income (2)

 

169

 

 

 

159

 

 

 

215

 

 

 

140

 

 

 

135

 

 

 

195

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net sales

$

825

 

 

$

670

 

 

$

1,495

 

 

$

684

 

 

$

624

 

 

$

1,308

 

Adjusted Gross profit (1)

 

405

 

 

 

348

 

 

 

753

 

 

 

333

 

 

 

316

 

 

 

649

 

Adjusted Gross Margin

 

49.1

%

 

 

51.9

%

 

 

50.4

%

 

 

48.7

%

 

 

50.6

%

 

 

49.6

%

Adjusted Operating Income (2)

 

169

 

 

 

159

 

 

 

328

 

 

 

140

 

 

 

135

 

 

 

275

 

(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).

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

($ In millions, except share data)

(Unaudited)

 

 

Three Months Ended

 

April 4,
2026

 

March 29,
2025

GAAP Net income

$

135

 

 

$

136

 

Adjustments to Cost of sales(1)

 

 

 

Purchase accounting adjustments

 

5

 

 

 

 

Share-based compensation

 

6

 

 

 

4

 

Total adjustments to Cost of sales

 

11

 

 

 

4

 

Adjustments to Operating expenses(1)

 

 

 

Amortization of intangible assets

 

37

 

 

 

24

 

Acquisition and integration costs

 

1

 

 

 

3

 

Share-based compensation

 

56

 

 

 

49

 

Exit and restructuring costs

 

8

 

 

 

 

Total adjustments to Operating expenses

 

102

 

 

 

76

 

Adjustments to Other expense, net(1)

 

 

 

Amortization of debt issuance costs and discounts

 

1

 

 

 

1

 

Loss on sale of investments

 

15

 

 

 

 

Foreign exchange loss

 

 

 

 

5

 

Gain on sale of business

 

(5

)

 

 

Total adjustments to Other expense, net

 

11

 

 

 

6

 

Income tax effect of adjustments(2)

 

 

 

Reported income tax expense

 

32

 

 

 

29

 

Adjusted income tax

 

(56

)

 

 

(43

)

Total adjustments to income tax

 

(24

)

 

 

(14

)

Total adjustments

 

100

 

 

 

72

 

Non-GAAP Net income

$

235

 

 

$

208

 

 

 

 

 

GAAP earnings per share

 

 

 

Basic

$

2.74

 

 

$

2.64

 

Diluted

$

2.72

 

 

$

2.62

 

Non-GAAP earnings per share

 

 

 

Basic

$

4.79

 

 

$

4.06

 

Diluted

$

4.75

 

 

$

4.02

 

 

 

 

 

Basic weighted average shares outstanding

 

49,017,288

 

 

 

51,365,011

 

Diluted weighted average and equivalent shares outstanding

 

49,428,337

 

 

 

51,806,550

 

(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.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

GAAP to NON-GAAP RECONCILIATION TO EBITDA

($ In millions)

(Unaudited)

 

 

Three Months Ended

 

April 4,
2026

 

March 29,
2025

GAAP Net income

$

135

 

 

$

136

 

Add back:

 

 

 

Depreciation (excluding exit and restructuring)

 

19

 

 

 

17

 

Amortization of intangible assets

 

37

 

 

 

24

 

Total Other expense, net

 

48

 

 

 

30

 

Income tax expense

 

32

 

 

 

29

 

EBITDA (Non-GAAP)

 

271

 

 

 

236

 

 

 

 

 

Adjustments to Cost of sales

 

 

 

Purchase accounting adjustments

 

5

 

 

 

 

Share-based compensation

 

6

 

 

 

4

 

Total adjustments to Cost of sales

 

11

 

 

 

4

 

Adjustments to Operating expenses

 

 

 

Acquisition and integration costs

 

1

 

 

 

3

 

Share-based compensation

 

56

 

 

 

49

 

Exit and restructuring costs

 

8

 

 

 

 

Total adjustments to Operating expenses

 

65

 

 

 

52

 

Total adjustments to EBITDA

 

76

 

 

 

56

 

Adjusted EBITDA (Non-GAAP)

$

347

 

 

$

292

 

 

 

 

 

Adjusted EBITDA margin (Non-GAAP)

 

23.2

%

 

 

22.3

%

FREE CASH FLOW

 

 

Three Months Ended

 

April 4,
2026

 

March 29,
2025

Net cash provided by operating activities

$

176

 

 

$

178

 

Less: Purchases of property, plant and equipment

 

(13

)

 

 

(20

)

Free cash flow (Non-GAAP)(1)

$

163

 

 

$

158

 

 

(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.

 

Investors
Michael Steele, CFA, IRC
Vice President, Investor Relations
Phone: + 1 847 518 6432
InvestorRelations@zebra.com

Media
Therese Van Ryne
Senior Director, External Communications
Phone: + 1 847 370 2317
therese.vanryne@zebra.com

Source: Zebra Technologies Corporation