Zebra Technologies Crushes Q2 Estimates, Raises Full-Year Outlook on Broad-Based Demand
ZBRA sits 58% above its 52-week low of $199.05.
Summary
Zebra Technologies posted Q2 2026 results well above expectations, with revenue of $1.56B and non-GAAP EPS of $6.35. The full-year outlook was raised, now guiding for non-GAAP EPS of $20.75-$21.25 and free cash flow over $1B.
Key Events · Earnings and Guidance · ZBRA
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Record Q2 Revenue and Earnings
Net sales of $1,557 million, up 20.4% YoY, and non-GAAP diluted EPS of $6.35, a 75.9% increase, were driven by double-digit organic growth in both segments.
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Full-Year Guidance Raised
Reflecting strong demand and operational execution, the full-year outlook now calls for sales growth of 14-16%, non-GAAP EPS of $20.75-$21.25, and free cash flow exceeding $1 billion.
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Margin Expansion Driven by Tariff Recoveries
Adjusted gross margin expanded 540 bps to 53.3%, helped by $73 million in IEEPA tariff recoveries, while adjusted EBITDA margin reached 27.7%, up 710 bps.
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Aggressive Share Repurchases
Demonstrating confidence and returning capital to shareholders, the company repurchased $268 million in shares during Q2, bringing H1 2026 repurchases to $568 million.
Analysis · ZBRA · Technology
A record quarter saw revenue hit $1.56 billion, up 20.4% year-over-year, while non-GAAP EPS reached $6.35, easily topping consensus. The full-year guide was lifted materially—non-GAAP EPS is now seen at $20.75 to $21.25 and free cash flow above $1 billion. Broad-based strength across segments and regions, coupled with margin gains from tariff recoveries and operating leverage, underpins the upgrade and signals sustained momentum. The print is a clear positive for the stock.
At the time of this filing, ZBRA was trading at $315.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $13.9B. The 52-week trading range was $199.05 to $350.64. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.