Zebra Technologies Q2 2026: Revenue Beats by 4%, Full-Year Guidance Raised Above Consensus
ZBRA sits 85% above its 52-week low of $199.05 on elevated volume (2.6× avg).
Summary
Zebra Technologies crushed Q2 2026 estimates and raised full-year guidance above consensus, driven by strong demand across segments and a $73M tariff refund. The company repurchased $568M in stock year-to-date, signaling confidence.
Key Events · Earnings and Guidance · ZBRA
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Q2 Revenue and EPS Beat
Revenue of $1.56B beat consensus of $1.50B by 4%. Adjusted EPS of $6.35 exceeded the $5.80 estimate by 9.5%, driven by 20.4% total sales growth and 540 bps gross margin expansion to 53.0%.
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Full-Year Guidance Raised Above Consensus
Zebra raised FY2026 revenue guidance to $6.15B-$6.35B (vs. $6.05B consensus) and adjusted EPS to $24.50-$25.50 (vs. $23.80 consensus), reflecting sustained demand momentum and margin improvement.
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$73M Tariff Refund Boosts Margins
A $73M benefit from expected IEEPA tariff refunds was recognized in Q2, with $14M cash received and $59M receivable. This one-time item contributed to the 540 bps gross margin expansion.
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Aggressive Share Repurchases Continue
Zebra repurchased $568M of stock year-to-date, including $268M in Q2, reducing diluted share count by 6% YoY. The board authorized a new $1B buyback program in February 2026.
Analysis · ZBRA · Technology
A strong Q2 2026 underscores Zebra Technologies' momentum, with revenue of $1.56 billion beating consensus by 4% and adjusted EPS of $6.35 exceeding estimates by 9.5%. Full-year 2026 guidance was raised well above Street expectations—revenue is now projected at $6.15-$6.35 billion and adjusted EPS at $24.50-$25.50. Margins got a lift from a $73 million tariff refund benefit, while aggressive share repurchases of $568 million year-to-date signal management's conviction. Broad-based demand recovery, operational leverage, and capital return combine to make this a thesis-affirming quarter.
At the time of this filing, ZBRA was trading at $368.83 on NASDAQ in the Technology sector, with a market capitalization of approximately $17.6B. The 52-week trading range was $199.05 to $369.79. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.