Zebra Technologies Q1 sales beat estimates on segment, regional growth

Zebra Technologies

12/05/2026 11:39

Overview

Workflow automation provider's Q1 sales rose 14%, beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations, rising 18% yr/yr

Company repurchased $300 mln of shares in Q1

Outlook

Zebra expects Q2 sales growth of 14%-17% year-over-year, including 10.5 points from acquisitions and FX

Company sees Q2 adjusted EBITDA margin slightly above 21% and non-GAAP EPS of $4.20-$4.50

Zebra forecasts 2026 sales growth of 10%-14%, adjusted EBITDA margin of about 22%, non-GAAP EPS $18.30-$18.70

Result Drivers

SEGMENT AND REGIONAL GROWTH - Co said Q1 growth was broad-based across segments and regions, led by manufacturing end market

GROSS MARGIN IMPROVEMENT - Gross margin rose due to favorable foreign currency exchange, business mix, and productivity initiatives

ACQUISITION CONTRIBUTION - Elo Touch acquisition contributed to profitable growth and synergies in Q1

Company press release: ID:nBw5rkKmva

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$1.5 bln
$1.48 bln (13 Analysts)
Q1 Adjusted EPS
Beat
$4.75
$4.25 (14 Analysts)
Q1 EPS
$2.72


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electronic equipment & parts peer group is "buy"

Wall Street's median 12-month price target for Zebra Technologies Corp is $331.00, about 52.6% above its May 11 closing price of $216.96

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)