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Zebra Technologies (ZBRA) Q1 2026 earnings rise as company boosts full-year outlook

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

Rhea-AI Filing Summary

Zebra Technologies reported first-quarter 2026 net sales of $1.495 billion, up 14.3% year over year, with growth across both Connected Frontline and Asset Visibility & Automation segments. GAAP net income was $135 million, or $2.72 per diluted share, roughly flat versus last year.

Non-GAAP diluted EPS rose to $4.75 from $4.02, and adjusted EBITDA increased to $347 million, a 23.2% margin. Free cash flow was $163 million, and the company repurchased $300 million of shares. For Q2, Zebra guides to sales growth of 14–17% and non-GAAP EPS of $4.20–$4.50. For full-year 2026, it expects sales growth of 10–14%, adjusted EBITDA margin around 22%, non-GAAP EPS of $18.30–$18.70, and free cash flow above $900 million.

Positive

  • Double-digit top-line growth and stronger profitability: Q1 2026 net sales rose 14.3% to $1.495 billion, while non-GAAP diluted EPS increased 18.2% to $4.75 and adjusted EBITDA grew 18.8% to $347 million with margin expansion to 23.2%.
  • Raised full-year 2026 outlook with robust cash generation: The company now expects 2026 sales growth of 10–14%, non-GAAP EPS of $18.30–$18.70, adjusted EBITDA margin around 22%, and free cash flow greater than $900 million.

Negative

  • None.

Insights

Strong Q1 growth, expanding margins and higher 2026 outlook support a positive fundamental trend.

Zebra Technologies delivered Q1 2026 net sales of $1.495 billion, up 14.3%, with both Connected Frontline and Asset Visibility & Automation contributing. Non-GAAP diluted EPS increased to $4.75, while adjusted EBITDA rose to $347 million and margin improved to 23.2%.

Operating expenses increased mainly from acquisitions and amortization, but on a non-GAAP basis margins expanded, showing cost discipline. The balance sheet carried $114 million in cash and $2.660 billion of total debt as of April 4, 2026, with Q1 free cash flow of $163 million.

The company repurchased $300 million of stock and raised its 2026 guidance to sales growth of 10–14%, non-GAAP EPS of $18.30–$18.70, and free cash flow above $900 million. Actual results will depend on execution, acquisition integration and macro factors described in its risk disclosures.

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 $1,495 million Q1 2026, up 14.3% year over year
GAAP net income $135 million Q1 2026, vs. $136 million in Q1 2025
Non-GAAP diluted EPS $4.75 Q1 2026, up from $4.02 in Q1 2025
Adjusted EBITDA $347 million Q1 2026, 23.2% of adjusted net sales
Free cash flow $163 million Three months ended April 4, 2026
Share repurchases $300 million Q1 2026 common stock repurchases
Q2 2026 sales growth guidance 14–17% Expected year-over-year net sales growth
Full-year 2026 non-GAAP EPS guidance $18.30–$18.70 Company outlook for 2026
Adjusted EBITDA financial
"Adjusted EBITDA increased year-over-year to $347 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 for the first quarter of 2026 increased 4.3% 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.
free cash flow financial
"resulting in free cash flow of $163 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.
Non-GAAP diluted earnings per share financial
"Non-GAAP diluted EPS increased year-over-year to $4.75"
Non-GAAP diluted earnings per share is a company’s per-share profit figure that starts with reported net income but then removes or alters certain items (like one-time charges, stock-based pay, or other adjustments) and divides by the number of shares after accounting for things that could dilute ownership. Investors use it as a “cleaned-up” measure to judge ongoing profit on a per-share basis, but because companies choose what to adjust, it can be more subjective than the standard GAAP metric—like comparing a regular bank statement to one that omits irregular expenses to show a steadier month-to-month picture.
Physical AI technical
"As e-commerce, automation and Physical AI trends accelerate, we are well positioned"
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 $1,495 million +14.3% year over year
GAAP net income $135 million -0.7% year over year
Non-GAAP diluted EPS $4.75 +18.2% year over year
Adjusted EBITDA $347 million +18.8% year over year
Guidance

For Q2 2026, Zebra expects net sales growth of 14–17%, adjusted EBITDA margin slightly higher than 21%, and non-GAAP diluted EPS of $4.20–$4.50. For full-year 2026, it projects sales growth of 10–14%, adjusted EBITDA margin around 22%, non-GAAP EPS of $18.30–$18.70, and free cash flow over $900 million.

Understanding 8-K Material Events →
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): May 12, 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 May 12, 2026, we announced our results of operations and financial position as of and for the first quarter ended April 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 May 12, 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:May 12, 2026 By: /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 May 12, 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 First-Quarter 2026 Results
Delivers strong first-quarter 2026 performance with broad-based growth across segments and regions
Increases outlook for the full year 2026


Lincolnshire, Ill., May 12, 2026 — 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."

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$ in millions, except per share amounts1Q261Q25Change
Select reported measures:
Net sales$1,495 $1,308 14.3%
Gross profit742 645 15.0%
Gross margin 49.6 %49.3 %30 bps
Net income135 136 (0.7%)
Net income margin9.0 %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 growth4.3%
Adjusted gross profit753 649 16.0%
   Adjusted gross margin50.4 %49.6 %80 bps
Adjusted EBITDA347 292 18.8%
   Adjusted EBITDA margin23.2 %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.




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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 net favorable 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.
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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
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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
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
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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, net692 729 
Income tax receivable30 31 
Prepaid expenses and other current assets126 110 
Total Current assets1,695 1,796 
Property, plant and equipment, net350 353 
Right-of-use lease assets170 166 
Goodwill4,709 4,727 
Other intangibles, net765 809 
Deferred income taxes410 414 
Other long-term assets233 237 
Total Assets$8,332 $8,502 
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt$264 $141 
Accounts payable581 695 
Accrued liabilities459 558 
Deferred revenue434 446 
Income taxes payable25 12 
Total Current liabilities1,763 1,852 
Long-term debt2,387 2,361 
Long-term lease liabilities158 157 
Deferred income taxes32 32 
Long-term deferred revenue398 396 
Other long-term liabilities124 116 
Total Liabilities4,862 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 shares1 1 
Additional paid-in capital866 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 earnings5,414 5,279 
Accumulated other comprehensive loss(24)(18)
Total Stockholders’ Equity3,470 3,588 
Total Liabilities and Stockholders’ Equity$8,332 $8,502 
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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 software264 246 
Total Net sales1,495 1,308 
Cost of sales:
Tangible products623 542 
Services and software130 121 
Total Cost of sales753 663 
Gross profit742 645 
Operating expenses:
Selling and marketing189 161 
Research and development165 151 
General and administrative127 111 
Amortization of intangible assets37 24 
Acquisition and integration costs1 3 
Exit and restructuring costs8 — 
Total Operating expenses527 450 
Operating income215 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 expense32 29 
Net income$135 $136 
Basic earnings per share$2.74 $2.64 
Diluted earnings per share$2.72 $2.62 
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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 amortization56 41 
Loss on sale of investments15 — 
Share-based compensation58 51 
Deferred income taxes— (23)
Gain on sale of business(5)— 
Other, net1 1 
Changes in operating assets and liabilities:
Accounts receivable, net67 84 
Inventories, net34 15 
Other assets(12)3 
Accounts payable(119)(76)
Accrued liabilities(67)(110)
Deferred revenue(11)16 
Income taxes24 42 
Other operating activities— (2)
Net cash provided by operating activities176 178 
Cash flows from investing activities:
Acquisition of business— (62)
Proceeds from the sale of business9 — 
Purchases of property, plant and equipment(13)(20)
Proceeds from sale of long-term investments1 — 
Other investing activities1 — 
Net cash used in investing activities(2)(82)
Cash flows from financing activities:
Payments of debt(37)— 
Proceeds from issuance of debt186 — 
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 period125 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 

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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
RECONCILIATION OF ORGANIC NET SALES GROWTH
(Unaudited)

Three Months Ended
April 4, 2026
CFAVAConsolidated
Consolidated Reported GAAP Net sales growth20.6 %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 growth3.8 %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.



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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
April 4, 2026March 29, 2025
CFAVAConsolidatedCFAVAConsolidated
GAAP
Reported Net sales$825 $670 $1,495 $684 $624 $1,308 
Reported Gross profit (1)
405 348 742 333 316 645 
Gross Margin49.1 %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 Margin49.1 %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).

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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 Ended
April 4,
2026		March 29,
2025
GAAP Net income$135 $136 
Adjustments to Cost of sales(1)
Purchase accounting adjustments5 — 
Share-based compensation6 4 
Total adjustments to Cost of sales11 4 
Adjustments to Operating expenses(1)
Amortization of intangible assets37 24 
Acquisition and integration costs1 3 
Share-based compensation56 49 
Exit and restructuring costs8 — 
Total adjustments to Operating expenses102 76 
Adjustments to Other expense, net(1)
Amortization of debt issuance costs and discounts1 1 
Loss on sale of investments15 — 
Foreign exchange loss— 5 
Gain on sale of business(5)
Total adjustments to Other expense, net11 6 
Income tax effect of adjustments(2)
Reported income tax expense32 29 
Adjusted income tax(56)(43)
Total adjustments to income tax (24)(14)
Total adjustments100 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 outstanding49,017,28851,365,011
Diluted weighted average and equivalent shares outstanding49,428,33751,806,550
(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.

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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 assets37 24 
Total Other expense, net48 30 
Income tax expense32 29 
EBITDA (Non-GAAP)271 236 
Adjustments to Cost of sales
Purchase accounting adjustments5 — 
Share-based compensation6 4 
Total adjustments to Cost of sales11 4 
Adjustments to Operating expenses
Acquisition and integration costs1 3 
Share-based compensation56 49 
Exit and restructuring costs8 — 
Total adjustments to Operating expenses65 52 
Total adjustments to EBITDA76 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.
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Source: View Original Filing on SEC EDGAR

FAQ

How did Zebra Technologies (ZBRA) perform in the first quarter of 2026?

Zebra Technologies posted strong Q1 2026 results with net sales of $1.495 billion, up 14.3% year over year. GAAP net income was $135 million, while non-GAAP diluted EPS increased to $4.75, reflecting improved profitability and contribution from recent acquisitions.

What were Zebra Technologies (ZBRA) key profitability metrics for Q1 2026?

In Q1 2026, Zebra reported gross profit of $742 million and gross margin of 49.6%. Adjusted EBITDA reached $347 million, representing a 23.2% margin. Non-GAAP net income was $235 million, supporting non-GAAP diluted earnings per share of $4.75.

What guidance did Zebra Technologies (ZBRA) provide for Q2 2026?

For Q2 2026, Zebra expects sales growth of 14–17% compared to the prior year, including about 10.5 points from acquisitions and currency. It targets an adjusted EBITDA margin slightly above 21% and projects non-GAAP diluted EPS between $4.20 and $4.50, assuming a 19% tax rate.

What is Zebra Technologies (ZBRA) full-year 2026 outlook?

For full-year 2026, Zebra anticipates sales growth of 10–14%, with roughly 7 points from acquisitions and currency. It expects an adjusted EBITDA margin of about 22%, non-GAAP diluted EPS of $18.30–$18.70, and free cash flow exceeding $900 million, assuming a 19% adjusted tax rate.

How strong was Zebra Technologies (ZBRA) cash flow and capital return in Q1 2026?

Zebra generated Q1 2026 net cash from operating activities of $176 million and free cash flow of $163 million after $13 million in capital expenditures. The company also repurchased $300 million of its common stock, continuing significant capital returns to shareholders.

What is Zebra Technologies (ZBRA) current balance sheet position?

As of April 4, 2026, Zebra held $114 million in cash and cash equivalents and had total debt of $2.660 billion. Total assets were $8.332 billion and stockholders’ equity was $3.470 billion, reflecting share repurchases and retained earnings.

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