Zebra Technologies Q4 sales beat expectations; sets $1 bln buyback

Zebra Technologies

12/02/2026 11:39

Overview

Workflow automation firm's Q4 net sales rose 10.6%, beating analyst expectations

Adjusted EPS for Q4 met analyst expectations

Company authorized an additional $1 bln share repurchase

Outlook

Company expects Q1 2026 sales growth between 11% and 15%; adjusted EPS of $4.05-$4.35

Zebra sees full-year 2026 sales growth between 9% and 13%; adjusted EPS of $17.70-$18.30

Company anticipates full-year 2026 free cash flow of at least $900 mln

Result Drivers

SEGMENT GROWTH - Net sales growth driven by 17.6% increase in Connected Frontline segment and 2.1% increase in Asset Visibility & Automation segment

RESTRUCTURING CHARGES - $76 million in exit and restructuring charges impacted net income, related to exiting robotics business and Elo Touch acquisition

OPERATING EXPENSE LEVERAGE - Improved operating expense leverage contributed to 10.5% increase in adjusted EBITDA

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$1.48 bln
$1.46 bln (13 Analysts)
Q4 Adjusted EPS
Meet
$4.33
$4.33 (14 Analysts)
Q4 EPS
$1.39


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "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 $345.00, about 36.6% above its February 11 closing price of $252.50

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw3fQ3Yca

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(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.)