Zebra Technologies posts strong Q3 growth but gives mixed Q4 outlook
Zebra Technologies reported third-quarter 2026 net sales of $1,614 million, up 22.3% year over year, with net income of $164 million and non-GAAP diluted EPS of $4.95. Adjusted EBITDA rose to $349 million, while gross margin fell to 45.7% from 48.0% as memory costs increased. The company raised its full-year outlook and expects fourth-quarter sales growth of 10% to 14%, non-GAAP diluted EPS of $5.00 to $5.40, and adjusted EBITDA margin of approximately 22%.
Why it matters
The Q4 earnings range was slightly below market expectations in several reports, prompting a sharp premarket decline in Zebra shares despite the quarterly beat. The company expects full-year free cash flow of at least $1 billion, while higher memory costs have reduced gross-margin performance.
Key facts
- 1Third-quarter net sales were $1,614 million, compared with $1,320 million in the prior year, a year-over-year increase of 22.3%. sec.gov
- 2Third-quarter net income was $164 million, or $3.43 per diluted share, while non-GAAP diluted EPS was $4.95. sec.gov
- 3Adjusted EBITDA increased to $349 million, with an adjusted EBITDA margin of 21.6%. sec.gov
- 4Zebra expects fourth-quarter sales growth between 10% and 14%, non-GAAP diluted EPS of $5.00 to $5.40, and adjusted EBITDA margin of approximately 22%. sec.gov
- 5The company expects full-year free cash flow of at least $1 billion. sec.gov
- 6Zebra repurchased $75 million of shares during the quarter. sec.gov
Summary written by AlphAI AI Desk from 15 of 15 sources. Not investment advice. Figures are as stated by the linked sources.