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Zebra Technologies (NASDAQ: ZBRA) lifts 2026 outlook after record Q2 performance

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Zebra Technologies Corporation reported record second-quarter 2026 results, with net sales of $1,557 million, a 20.4% year-over-year increase. Net income was $233 million, or $4.85 per diluted share, while non-GAAP diluted EPS rose to $6.35. Adjusted EBITDA increased to $431 million, representing a 27.7% margin versus 20.6% a year earlier. Consolidated organic net sales grew 9.2%, including 7.5% growth in Connected Frontline and 11.4% in Asset Visibility & Automation. Results included $73 million of IEEPA tariff recoveries and $268 million of share repurchases in the quarter.

As of July 4, 2026, Zebra held $157 million in cash and cash equivalents and $2,776 million of total debt. For the first six months of 2026, net cash provided by operating activities was $387 million, funding $361 million of free cash flow and $568 million of share repurchases. For third quarter 2026, Zebra expects sales growth of 17%–20%, adjusted EBITDA margin of about 22%, and non-GAAP diluted EPS of $4.70–$4.90. For full year 2026, it projects sales growth of 14%–16%, adjusted EBITDA margin of 23.5%–24.0%, non-GAAP diluted EPS of $20.75–$21.25, and free cash flow greater than $1 billion.

Positive

  • Second-quarter net sales rose 20.4% to $1,557 million, with net income more than doubling to $233 million and non-GAAP diluted EPS up 75.9% to $6.35.
  • Adjusted EBITDA increased 61.4% year-over-year to $431 million, expanding adjusted EBITDA margin to 27.7% from 20.6%, reflecting stronger profitability.
  • Consolidated organic net sales grew 9.2%, with Connected Frontline up 7.5% and Asset Visibility & Automation up 11.4%, indicating broad-based underlying demand.
  • Year-to-date free cash flow reached $361 million, and the company returned $568 million to shareholders via repurchases, while guiding to full-year free cash flow of over $1 billion.
  • The company raised its 2026 outlook, guiding full-year sales growth of 14%–16%, adjusted EBITDA margin of 23.5%–24.0%, and non-GAAP diluted EPS of $20.75–$21.25.

Negative

  • None.

Filing Explained

As of July 4, 2026, $2,275 million of Zebra’s $2,776 million total debt was classified as current.

The August 4 Form 8-K records Zebra’s completed second-quarter disclosure for the period ended July 4, 2026; its balance sheet reports $2,275 million as the current portion of long-term debt within $2,776 million of total debt.

For the first six months, the cash-flow statement separately reports $387 million of operating cash flow, $26 million of capital expenditures, and $568 million of common-stock repurchases; it does not identify a one-to-one funding source for the repurchases.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net sales Q2 2026 $1,557 million Second quarter 2026 net sales; 20.4% year-over-year increase
Net income Q2 2026 $233 million Second quarter 2026 net income; 108.0% year-over-year increase
Non-GAAP diluted EPS Q2 2026 $6.35 Second quarter 2026 non-GAAP diluted earnings per diluted share; 75.9% year-over-year increase
Adjusted EBITDA Q2 2026 $431 million Second quarter 2026 Adjusted EBITDA; 27.7% of adjusted net sales
Cash and cash equivalents $157 million Cash and cash equivalents as of July 4, 2026
Total debt $2,776 million Total debt as of July 4, 2026
Free cash flow H1 2026 $361 million Free cash flow for the first six months of 2026
FY 2026 non-GAAP EPS guidance $20.75 to $21.25 Full year 2026 non-GAAP diluted earnings per share guidance range
Adjusted EBITDA financial
"Adjusted EBITDA increased year-over-year to 431 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
organic net sales growth financial
"Consolidated organic net sales increased 9.2% year-over-year"
Organic net sales growth measures how much a company’s core revenue rose from its existing operations, excluding effects from buying or selling businesses and from changes in currency values. Investors use it to see whether customers are actually buying more or paying higher prices — like checking growth from the same orchard year-to-year rather than counting fruit from newly added orchards — which helps assess true demand and underlying business health.
IEEPA tariff recoveries regulatory
"Recorded IEEPA tariff recoveries of 73 million"
free cash flow financial
"resulting in free cash flow of 361 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Physical AI technical
"continue to benefit from trends in automation and Physical AI"
Physical AI combines artificial intelligence with physical devices or environments, enabling machines to interact with and adapt to the real world in a human-like way. It matters to investors because it can lead to smarter robots, autonomous vehicles, or advanced sensors that improve efficiency and open new markets, potentially creating significant business opportunities and competitive advantages.
Net sales $1,557 million 20.4% year-over-year increase
Net income $233 million 108.0% year-over-year increase
GAAP diluted EPS $4.85 121.5% year-over-year increase
Non-GAAP diluted EPS $6.35 75.9% year-over-year increase
Adjusted EBITDA $431 million 61.4% year-over-year increase
Guidance

For Q3 2026, Zebra expects sales growth of 17%–20%, adjusted EBITDA margin of approximately 22%, and non-GAAP diluted EPS of $4.70–$4.90. For full-year 2026, it guides to sales growth of 14%–16%, adjusted EBITDA margin of 23.5%–24.0%, non-GAAP diluted EPS of $20.75–$21.25, and free cash flow greater than $1 billion.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Zebra Technologies (ZBRA) perform in the second quarter of 2026?
Zebra Technologies delivered strong Q2 2026 results with net sales of $1,557 million, up 20.4% year-over-year. Net income was $233 million and non-GAAP diluted EPS rose to $6.35, with adjusted EBITDA of $431 million and a 27.7% margin.

What were Zebra Technologies (ZBRA) segment results in Q2 2026?
In Q2 2026, Zebra’s Connected Frontline segment generated $903 million in net sales, while Asset Visibility & Automation delivered $654 million. Organic net sales grew 7.5% in Connected Frontline and 11.4% in Asset Visibility & Automation, supporting consolidated organic growth of 9.2%.

What is Zebra Technologies’ (ZBRA) outlook for third quarter 2026?
For Q3 2026, Zebra expects sales growth of 17%–20% versus the prior year, including about 10.5 points from acquisitions, dispositions and FX. It guides to an approximately 22% adjusted EBITDA margin and non-GAAP diluted EPS between $4.70 and $4.90 at a ~19% tax rate.

What full-year 2026 guidance did Zebra Technologies (ZBRA) provide?
For full-year 2026, Zebra projects sales growth of 14%–16%, including about 8 points from acquisitions, dispositions and FX. It expects an adjusted EBITDA margin of 23.5%–24.0%, non-GAAP diluted EPS of $20.75–$21.25, and free cash flow of over $1 billion.

How strong were Zebra Technologies’ (ZBRA) cash flow and share repurchases in 2026 year-to-date?
In the first six months of 2026, Zebra generated $387 million of operating cash flow and $361 million of free cash flow. The company repurchased $568 million of common stock over the same period, including $268 million in Q2 alone.

What is Zebra Technologies’ (ZBRA) balance sheet position as of July 4, 2026?
As of July 4, 2026, Zebra reported $157 million in cash and cash equivalents and $2,776 million of total debt. Total assets were $8,637 million, and stockholders’ equity stood at $3,435 million, reflecting substantial share repurchases and retained earnings.
0000877212false00008772122026-05-122026-05-12

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 4, 2026
 
 
ZEBRA TECHNOLOGIES CORPORATION
(Exact Name of Registrant as Specified in Charter)
 
Delaware000-1940636-2675536
(State or Other Jurisdiction
of Incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
3 Overlook Point, Lincolnshire, Illinois
60069
(Address of Principal Executive Offices)(Zip Code)
Registrant’s telephone number, including area code: 847-634-6700
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Class A Common Stock, par value $.01 per shareZBRAThe NASDAQ Stock Market, LLC


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02.Results of Operations and Financial Conditions.
    
    The information contained in this Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

    On August 4, 2026, we announced our results of operations and financial position as of and for the second quarter ended July 4, 2026. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01.Financial Statements and Exhibits.
(d) Exhibits.
Exhibit NumberDescription of Exhibits
99.1
Registrant’s Press Release dated August 4, 2026.
104Cover Page Interactive Data File (embedded within the inline XBRL)






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
ZEBRA TECHNOLOGIES CORPORATION
Date:August 4, 2026By:/s/ Cristen Kogl
Cristen Kogl
Chief Legal Officer, General Counsel & Corporate Secretary


EXHIBIT INDEX
 
Exhibit NumberDescription of Exhibits
99.1
Registrant’s Press Release dated August 4, 2026
104Cover Page Interactive Data File (embedded within the inline XBRL)



Exhibit 99.1
zebralogostacked.jpg
Zebra Technologies Corporation
 
3 Overlook Point
Lincolnshire, IL 60069 USA
+1 847 634 6700
www.zebra.com
Zebra Technologies Announces Second Quarter 2026 Results
Delivers record performance with broad-based growth across segments and regions
Raises full year outlook

Lincolnshire, Ill., August 4, 2026 — Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating workflows to deliver intelligent operations, today announced results for the second quarter ended July 4, 2026.

Second-Quarter Financial Highlights
•Net sales of $1,557 million; year-over-year increase of 20.4%
•Net income of $233 million and net income per diluted share of $4.85
•Non-GAAP diluted EPS increased year-over-year to $6.35
•Adjusted EBITDA increased year-over-year to $431 million
•Recorded IEEPA tariff recoveries of $73 million, of which $14 million received in the quarter
•Share repurchases of $268 million

“Our record results reflect broad-based demand for our innovative solutions and excellent execution on our growth and profitability priorities. We delivered for our customers by leveraging our long-standing supplier relationships to support our growth," said Bill Burns, Chief Executive Officer of Zebra Technologies. "The momentum we see across our business underscores Zebra's position as the foundation for intelligent operations and frontline AI as customers digitize and automate environments."

"Our strong balance sheet and cash flow continue to provide significant financial flexibility, enabling us to invest for growth while returning more than $560 million to shareholders in the first half of the year through disciplined share repurchases," said Nathan Winters, Chief Financial Officer of Zebra Technologies. "We believe this balanced approach positions Zebra to create long-term shareholder value."

-1-

$ in millions, except per share amounts2Q262Q25Change
Select reported measures:
Net sales$1,557 $1,293 20.4%
Gross profit825 616 33.9%
Gross margin 53.0 %47.6 %540 bps
Net income233 112 108.0%
Net income margin15.0 %8.7 %630 bps
Net income per diluted share$4.85 $2.19 121.5%
Select Non-GAAP measures:
Adjusted net sales$1,557 $1,293 20.4%
   Organic net sales growth9.2%
Adjusted gross profit830 619 34.1%
   Adjusted gross margin53.3 %47.9 %540 bps
Adjusted EBITDA431 267 61.4%
   Adjusted EBITDA margin27.7 %20.6 %710 bps
Non-GAAP net income$305 $186 64.0%
Non-GAAP earnings per diluted share$6.35 $3.61 75.9%

Second Quarter 2026 Compared to the Second Quarter 2025
Net sales were $1,557 million compared to $1,293 million in the prior year. Net sales in the Connected Frontline ("CF") segment were $903 million compared to $717 million in the prior year. Asset Visibility & Automation ("AVA") segment net sales were $654 million compared to $576 million in the prior year. Consolidated organic net sales increased 9.2% year-over-year, with a 7.5% increase in the CF segment and an 11.4% increase in the AVA segment.

Gross profit was $825 million compared to $616 million in the prior year. Gross margin increased to 53.0% compared to 47.6% in the prior year primarily due to IEEPA tariff recoveries and favorable foreign currency exchange. Adjusted gross margin was 53.3% compared to 47.9% in the prior year.

Operating expenses increased to $504 million from $433 million in the prior year primarily due to expenses associated with acquired businesses including amortization of intangible assets. Adjusted operating expenses increased to $419 million from $370 million in the prior year.

Net income was $233 million, or $4.85 per diluted share, compared to net income of $112 million, or $2.19 per diluted share, in the prior year. Non-GAAP net income increased to $305 million or $6.35 per diluted share, compared to $186 million, or $3.61 per diluted share for the prior year.

Adjusted EBITDA increased to $431 million, or 27.7% of adjusted net sales, compared to $267 million, or 20.6% of adjusted net sales in the prior year.

Balance Sheet and Cash Flow
As of July 4, 2026, the Company had cash and cash equivalents of $157 million and total debt of $2,776 million.

For the first six months of 2026, net cash provided by operating activities was $387 million and the Company invested $26 million in capital expenditures, resulting in free cash flow of $361 million. The Company also made share repurchases of $568 million.

Outlook
Mr. Burns added, "Strong demand momentum and progress on productivity and memory supply supports our significantly increased outlook for the full year. We are focused on driving sustainable growth across our business with our innovative portfolio of solutions, as we continue to benefit from trends in automation and Physical AI."

-2-

Third Quarter 2026
The Company expects third quarter sales growth between 17% and 20% compared to the prior year. This expectation includes approximately 10.5 points of favorable impact from business acquisitions, dispositions and foreign currency.

Adjusted EBITDA margin for the third quarter is expected to be approximately 22%. Non-GAAP diluted earnings per share are expected to be in the range of $4.70 to $4.90. This assumes an adjusted effective tax rate of approximately 19%.

Full Year 2026
The Company expects full year sales growth between 14% and 16% compared to the prior year. This expectation includes approximately 8 points of favorable impact from business acquisitions, dispositions and foreign currency.

Adjusted EBITDA margin for the full year is expected to be between 23.5% and 24.0%. Non-GAAP diluted earnings per share are expected to be in the range of $20.75 to $21.25. This assumes an adjusted effective tax rate of approximately 19%.

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

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
-3-

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.

-4-

Contacts
InvestorsMedia
Michael Steele, CFA, IRCTherese Van Ryne
Vice President, Investor RelationsSenior Director, External Communications
Phone: + 1 847 518 6432 Phone: + 1 847 370 2317
InvestorRelations@zebra.comtherese.vanryne@zebra.com


ZEBRA and the stylized Zebra head are trademarks of Zebra Technologies Corp., registered in many jurisdictions worldwide. You may quote this release with attribution.
-5-

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)

 
July 4,
2026		December 31, 2025
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$157 $125 
Accounts receivable, net of allowances for doubtful accounts of $1 million each as of July 4, 2026 and December 31, 2025
990 801 
Inventories, net733 729 
Income tax receivable56 31 
Prepaid expenses and other current assets126 110 
Total Current assets2,062 1,796 
Property, plant and equipment, net346 353 
Right-of-use lease assets168 166 
Goodwill4,701 4,727 
Other intangibles, net725 809 
Deferred income taxes396 414 
Other long-term assets239 237 
Total Assets$8,637 $8,502 
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt$2,275 $141 
Accounts payable738 695 
Accrued liabilities506 558 
Deferred revenue444 446 
Income taxes payable35 12 
Total Current liabilities3,998 1,852 
Long-term debt493 2,361 
Long-term lease liabilities156 157 
Deferred income taxes31 32 
Long-term deferred revenue391 396 
Other long-term liabilities133 116 
Total Liabilities5,202 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 shares1 1 
Additional paid-in capital882 814 
Treasury stock at cost, 24,762,921 and 22,558,911 shares as of July 4, 2026 and December 31, 2025, respectively(3,057)(2,488)
Retained earnings5,647 5,279 
Accumulated other comprehensive loss(38)(18)
Total Stockholders’ Equity3,435 3,588 
Total Liabilities and Stockholders’ Equity$8,637 $8,502 
-6-

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share data)
(Unaudited)
 
Three Months EndedSix Months Ended
July 4,
2026		June 28,
2025		July 4,
2026		June 28,
2025
Net sales:
Tangible products$1,316 $1,055 $2,547 $2,117 
Services and software241 238 505 484 
Total Net sales1,557 1,293 3,052 2,601 
Cost of sales:
Tangible products615 553 1,238 1,095 
Services and software117 124 247 245 
Total Cost of sales732 677 1,485 1,340 
Gross profit825 616 1,567 1,261 
Operating expenses:
Selling and marketing184 158 373 319 
Research and development159 144 324 295 
General and administrative114 102 241 213 
Amortization of intangible assets37 25 74 49 
Acquisition and integration costs2 4 3 7 
Exit and restructuring costs8 — 16 — 
Total Operating expenses504 433 1,031 883 
Operating income321 183 536 378 
Other (loss) income, net:
Foreign exchange loss(2)(11)(2)(16)
Interest expense, net(35)(25)(72)(48)
Other income (expense), net1 (9)(10)(11)
Total Other expense, net(36)(45)(84)(75)
Income before income tax 285 138 452 303 
Income tax expense52 26 84 55 
Net income$233 $112 $368 $248 
Basic earnings per share$4.89 $2.20 $7.61 $4.85 
Diluted earnings per share$4.85 $2.19 $7.54 $4.81 
-7-

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended
July 4,
2026		June 28,
2025
Cash flows from operating activities:
Net income$368 $248 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization113 84 
Losses on long-term investments15 10 
Share-based compensation94 83 
Deferred income taxes9 (30)
Gain on sale of business(5)— 
Other, net— 2 
Changes in operating assets and liabilities:
Accounts receivable, net(193)81 
Inventories, net(7)11 
Other assets(10)10 
Accounts payable35 (71)
Accrued liabilities(35)(101)
Deferred revenue(8)13 
Income taxes11 (10)
Other operating activities— (5)
Net cash provided by operating activities387 325 
Cash flows from investing activities:
Acquisition of business— (62)
Proceeds from the sale of business9 — 
Purchases of property, plant and equipment(26)(37)
Proceeds from sale of long-term investments1 — 
Other investing activities1 — 
Net cash used in investing activities(15)(99)
Cash flows from financing activities:
Payments of debt(59)— 
Proceeds from issuance of debt325 — 
Payments for repurchases of common stock(568)(250)
Net payments related to share-based compensation plans(21)(16)
Change in unremitted cash collections from servicing factored receivables(17)7 
Other financing activities(1)2 
Net cash used in financing activities(341)(257)
Effect of exchange rate changes on cash and cash equivalents1 2 
Net increase (decrease) in cash and cash equivalents32 (29)
Cash and cash equivalents at beginning of period125 901 
Cash and cash equivalents at end of period$157 $872 
Supplemental disclosures of cash flow information:
Income taxes paid$75 $95 
Interest paid$71 $55 
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
July 4, 2026
CFAVAConsolidated
Consolidated Reported GAAP Net sales growth25.9 %13.5 %20.4 %
Adjustments:
Impact of foreign currency translations (1)
(2.5)%(2.3)%(2.5)%
Impact of acquisitions and dispositions (2)
(15.9)%0.2 %(8.7)%
Consolidated Organic Net sales growth7.5 %11.4 %9.2 %
Six Months Ended
July 4, 2026
CFAVAConsolidated
Reported GAAP Consolidated Net sales growth23.3 %10.3 %17.3 %
Adjustments:
Impact of foreign currency translations (1)
(2.3)%(2.2)%(2.2)%
Impact of acquisitions and dispositions (2)
(15.3)%(0.1)%(8.3)%
Consolidated Organic Net sales growth5.7 %8.0 %6.8 %

(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.



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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN AND OPERATING INCOME
($ In millions)
(Unaudited)

Three Months Ended
July 4, 2026June 28, 2025
CFAVAConsolidatedCFAVAConsolidated
GAAP
Reported Net sales$903 $654 $1,557 $717 $576 $1,293 
Reported Gross profit (1)
462 368 825 339 280 616 
Gross Margin51.2 %56.3 %53.0 %47.3 %48.6 %47.6 %
Operating Income (2)
219 192 321 142 107 183 
Non-GAAP
Adjusted Net sales$903 $654 $1,557 $717 $576 $1,293 
Adjusted Gross profit (1)
462 368 830 339 280 619 
Adjusted Gross Margin51.2 %56.3 %53.3 %47.3 %48.6 %47.9 %
Adjusted Operating Income (2)
219 192 411 142 107 249 
Six Months Ended
July 4, 2026June 28, 2025
CFAVAConsolidatedCFAVAConsolidated
GAAP
Reported Net sales$1,728 $1,324 $3,052 $1,401 $1,200 $2,601 
Reported Gross profit (1)
867 716 1,567 672 596 1,261 
Gross Margin50.2 %54.1 %51.3 %48.0 %49.7 %48.5 %
Operating Income (2)
388 351 536 282 242 378 
Non-GAAP
Adjusted Net sales$1,728 $1,324 $3,052 $1,401 $1,200 $2,601 
Adjusted Gross profit (1)
867 716 1,583 672 596 1,268 
Adjusted Gross Margin50.2 %54.1 %51.9 %48.0 %49.7 %48.8 %
Adjusted Operating Income (2)
388 351 739 282 242 524 

(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).

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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME
($ In millions, except share data)
(Unaudited)
 
Three Months EndedSix Months Ended
July 4,
2026		June 28,
2025		July 4,
2026		June 28,
2025
GAAP Net income$233 $112 $368 $248 
Adjustments to Cost of sales(1)
Purchase accounting adjustments— — 5 — 
Share-based compensation5 3 11 7 
Total adjustments to Cost of sales5 3 16 7 
Adjustments to Operating expenses(1)
Amortization of intangible assets37 25 74 49 
Acquisition and integration costs2 4 3 7 
Share-based compensation38 34 94 83 
Exit and restructuring costs8 — 16 — 
Total adjustments to Operating expenses85 63 187 139 
Adjustments to Other expense, net(1)
Amortization of debt issuance costs and discounts1 — 2 1 
Losses on long-term investments— 10 15 10 
Foreign exchange loss2 11 2 16 
Gain on sale of business— — (5)— 
Other adjustments to Other expense, net(3)— (3)— 
Total adjustments to Other expense, net— 21 11 27 
Income tax effect of adjustments(2)
Reported income tax expense52 26 84 55 
Adjusted income tax(70)(39)(126)(82)
Total adjustments to income tax (18)(13)(42)(27)
Total adjustments72 74 172 146 
Non-GAAP Net income$305 $186 $540 $394 
GAAP earnings per share
       Basic$4.89 $2.20 $7.61 $4.85 
       Diluted$4.85 $2.19 $7.54 $4.81 
Non-GAAP earnings per share
       Basic$6.40 $3.63 $11.17 $7.69 
       Diluted$6.35 $3.61 $11.08 $7.63 
Basic weighted average shares outstanding47,717,20550,939,47448,364,99451,154,241
Diluted weighted average and equivalent shares outstanding48,129,26551,282,27348,776,54951,546,410
(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 Months EndedSix Months Ended
July 4,
2026		June 28,
2025		July 4,
2026		June 28,
2025
GAAP Net income$233 $112 $368 $248 
Add back:
    Depreciation (excluding exit and restructuring)20 18 39 35 
Amortization of intangible assets37 25 74 49 
Total Other expense, net36 45 84 75 
Income tax expense52 26 84 55 
EBITDA (Non-GAAP)378 226 649 462 
Adjustments to Cost of sales
Purchase accounting adjustments— — 5 — 
Share-based compensation5 3 11 7 
Total adjustments to Cost of sales5 3 16 7 
Adjustments to Operating expenses
Acquisition and integration costs2 4 3 7 
Share-based compensation38 34 94 83 
Exit and restructuring costs8 — 16 — 
Total adjustments to Operating expenses48 38 113 90 
Total adjustments to EBITDA53 41 129 97 
Adjusted EBITDA (Non-GAAP)$431 $267 $778 $559 
Adjusted EBITDA margin (Non-GAAP)27.7 %20.6 %25.5 %21.5 %

FREE CASH FLOW
Six Months Ended
July 4,
2026		  June 28,
2025
Net cash provided by operating activities$387   $325 
Less: Purchases of property, plant and equipment(26)(37)
Free cash flow (Non-GAAP)(1)
$361   $288 
(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.
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Source: View Original Filing on SEC EDGAR

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