Quick Summary
- Zebra Technologies delivered Q1 earnings per share of $4.75, marking an 18.2% increase year over year and surpassing analyst expectations of $4.26 by $0.49.
- Quarterly revenue reached $1.5 billion, reflecting 14.3% year-over-year growth and exceeding the $1.48 billion consensus forecast.
- The company’s adjusted EBITDA hit $347 million, beating projections by 9% and achieving a 23.2% margin.
- Full-year 2026 EPS outlook was increased to $18.50 at the midpoint, up from the previous $18.10 guidance.
- ZBRA shares surged approximately 14% during premarket hours, climbing to roughly $247.80 after the earnings announcement.
Zebra Technologies delivered an impressive first-quarter performance that propelled ZBRA shares approximately 14% higher in premarket activity to about $247.80 — representing a significant gain from the previous day’s closing price of $216.96.
The enterprise technology provider posted quarterly earnings of $4.75 per share, climbing 18.2% compared to the $4.02 recorded in the prior-year period. This performance exceeded Wall Street’s consensus forecast ranging from $4.25 to $4.26 by a solid $0.49.
Quarterly sales totaled $1.5 billion, representing a 14.3% year-over-year increase. Market analysts had projected $1.48 billion.
Zebra Technologies Corporation, ZBRA
The company’s adjusted EBITDA reached $347 million, surpassing the expected $318.4 million — representing a 9% outperformance with a margin of 23.2%.
The quarterly earnings figure also topped Zebra’s internal forecast range of $4.05 to $4.35 per share, landing at the upper end of company projections.
Full-Year Outlook Gets a Boost
Zebra elevated its 2026 full-year EPS projection to approximately $18.50 at the midpoint — an increase from the previous $18.10 guidance and above analyst consensus estimates ranging from $17.82 to $17.96.
The company’s full-year 2026 revenue forecast was bumped to $6.1 billion, rising from the earlier $6 billion projection. Wall Street had been anticipating $6 billion.
For the second quarter of 2026, Zebra provided EPS guidance between $4.20 and $4.50, with the midpoint roughly matching analyst estimates of $4.14 to $4.20.
CEO Bill Burns highlighted strength across core market segments. “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,” he said.
Burns also referenced e-commerce expansion, automation trends, and Physical AI trends as favorable factors for the remainder of the year.
The Elo Touch acquisition, finalized earlier, delivered “solid profitable growth” during the period as the company starts realizing operational synergies.
Climbing Back From Previous Declines
The backdrop is important. ZBRA had faced headwinds entering this earnings release. Shares were down 11% year to date and had fallen roughly 28% over the trailing 12 months before Tuesday’s report.
At its 2022 high point, ZBRA was trading near $600. The stock has been on a recovery trajectory since.
The revenue narrative also reflects a turnaround. Zebra generated $5.8 billion in sales during 2022. That number dropped in both 2023 and 2024 before rebounding to $5.4 billion in 2025. The projected 2026 full-year figure of $6.1 billion would surpass the 2022 peak.
Earnings per share growth on a two-year annualized basis came in at 37.9% — substantially outpacing the 13.2% revenue expansion over the same timeframe. A portion of this EPS outperformance stems from share repurchases, with the diluted share count declining 4.2% over two years.
The first quarter operating margin stood at 14.4%, unchanged year over year. Adjusted operating margin registered at 18.3%, down 2.8 percentage points from the comparable period last year, as expense growth outpaced revenue increases.
Free cash flow margin decreased to 10.9% from 12.1% in the first quarter of the previous year.
In the 90 days preceding the report, Zebra garnered 11 upward EPS revisions and just 2 downward adjustments.
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