Zebra Tech (ZBRA) AI Stock Analysis

• Market Cap: $10.14B
• Dividend Yield: N/A
• Average Volume (3M): 858.36K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.53
• Revenue Growth: 13.35%
• EPS Growth: 34.73%
• Country: US
• Employees: 9,900
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 4.33
• Shares Outstanding: 49,191,704
• 10 Day Avg. Volume: 762,714
• 30 Day Avg. Volume: 858,356
• PEG Ratio: -1.50
• Price to Book (P/B): 3.44
• Price to Sales (P/S): 2.29
• P/FCF Ratio: 14.85
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 5.09
• Enterprise Value/Ebitda: 12.54
• 1Y Price Target: $334.57
• Price Target Upside: 62.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 17.93
• Revenue Forecast (FY): $6.00B

• Rating: 66 Neutral
• Price Target: $224.00 ▲(8.64% Upside)
• Action: Downgraded Date: 02/14/26
• Date: Action: Downgraded 02/14/26

The score is driven primarily by healthy financial performance (strong recent cash generation and profitability, though with notable volatility and rising leverage) and supportive near-term technical momentum. Earnings call guidance and capital-return plans add confidence, while valuation (P/E ~25 and no dividend yield provided) is the main constraint.

Positive Factors

Free Cash Flow Strength

Sustained high free cash flow and strong cash‑to‑earnings conversion give the company durable funding for buybacks, debt reduction, M&A and product investment. That cash generation underpins capital return and strategic optionality across business cycles, improving long‑term resilience.

Recurring Revenue Model

A mix of hardware sales plus recurring consumables, software subscriptions and service contracts produces steady attach and lifecycle revenues. This installed‑base driven model increases revenue visibility, supports margins, and deepens customer relationships over years, stabilizing core cash flows.

Portfolio Expansion & Strategic M&A

Recent acquisitions and new product suites broaden TAM into connected frontline, 3D machine vision, RFID and frontline AI — higher‑growth, strategic adjacencies. These durable capability adds improve differentiation, create cross‑sell opportunities, and support multi‑year growth trends.

Negative Factors

Rising Leverage

Leverage has meaningfully increased versus prior years, reducing financial flexibility. Higher debt levels elevate interest and refinancing risk during downturns, constrain ability to invest opportunistically, and make the firm more sensitive to cash‑flow volatility over the medium term.

Margin Headwinds

Component cost pressure and elevated repair/service costs directly compress gross and services margins. The company’s mitigation (price, supplier actions, product transitions) requires execution; failure to fully offset these structural input and service cost trends would erode durable profitability.

Earnings & Cash Flow Volatility

Historic cyclicality — including a year of negative cash flow — highlights working‑capital and demand sensitivity. With elevated leverage and uneven regional/order patterns, volatility in earnings and cash generation raises execution risk and complicates long‑term planning.

Zebra Tech Business Overview & Revenue Model

Company Description

Zebra Technologies Corporation, together with its subsidiaries, provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide. It operates in two segments, Asset Intelligence & Tracking and Enterprise Visibility & Mobility. The company designs, manufactures, and sells printers, which produce labels, wristbands, tickets, receipts, and plastic cards; dye-sublimination thermal card printers, which produce images which are used for personal identification, access control, and financial transactions; RFID printers that encode data into passive RFID transponders; accessories and options for our printers, including vehicle mounts and battery chargers; stock and customized thermal labels, receipts, ribbons, plastic cards, and RFID tags for printers; and temperature-monitoring labels primarily used in vaccine distribution. It also provides various maintenance, technical support, repair, and managed and professional services; real-time location systems and services; and tags, sensors, exciters, middleware software, and application software; as well as physical inventory management solutions, and rugged tablets and enterprise-grade mobile computing products and accessories. In addition, the company offers barcode scanners, image capture devices, and RFID readers; and workforce management solutions, workflow execution and task management solutions, and prescriptive analytics solutions, as well as communications and collaboration solutions. It also provides services, including maintenance, technical support, repair, managed and professional services; as well as cloud-based software subscriptions and robotics automation solutions. The company serves retail and e-commerce, manufacturing, transportation and logistics, healthcare, public sector, and other industries through direct sales force, and network of channel partners. The company was founded in 1969 and is headquartered in Lincolnshire, Illinois.

How the Company Makes Money

Zebra makes money primarily by selling enterprise hardware and the related recurring and attach revenues that accompany those deployments. A major revenue stream comes from product sales of AIDC devices and systems—such as barcode label printers (including industrial and desktop models), barcode and imaging scanners, rugged mobile computers, and RFID readers/tags infrastructure—sold to businesses and government customers directly and through channel partners (e.g., value-added resellers, systems integrators, distributors, and retailers of enterprise IT). Zebra also generates revenue from supplies and consumables used with its installed base—most notably printing supplies like labels, wristbands, and ribbons—which can provide ongoing repeat purchases after initial hardware adoption. In addition, Zebra earns revenue from software and services that support device management, workflow optimization, data capture, and location/visibility solutions; these may be sold as subscriptions, licenses, or service contracts depending on the offering (specific pricing/packaging details: null). Services revenue also includes maintenance and support programs, professional services for deployment/integration, and repair services, which are often attached to hardware sales and contribute to lifecycle revenues over the duration of customer use. Partnerships and ecosystem relationships with resellers and integrators help Zebra reach large enterprise customers and embed its devices and software into broader operational systems (specific named partnership terms: null). Overall, Zebra’s model combines upfront system/device sales with ongoing consumables and service/software revenues tied to a large installed base in mission-critical operations.

Zebra Tech Financial Statement Overview

Summary

Solid profitability and a clear post-2023 rebound, with strong 2024–2025 operating cash flow and free cash flow. Offsetting this, net income and cash flow have shown cycle volatility (including negative FCF in 2023) and leverage has trended higher versus earlier years, reducing flexibility.

Income Statement

Revenue has recovered over the last two years (2024–2025) after a notable decline in 2023, but the growth profile remains uneven. Profitability is solid at the gross level (~45–48% gross margin), while operating profitability is healthy (mid-teens operating margin). The main weakness is bottom-line volatility: net margin fell to ~7.8% in 2025 from ~10.6% in 2024 and ~14.9% in 2021, indicating less consistent earnings power despite stable gross margins.

Balance Sheet

The balance sheet is workable but has become more leveraged versus earlier years. Debt relative to equity rose to ~0.78 in 2025 from ~0.66 in 2024 and ~0.38 in 2021, reducing financial flexibility. Equity has been relatively stable recently, and returns on equity remain respectable (~11.7% in 2025), but they are down from stronger levels in 2020–2022, suggesting profitability is not fully offsetting the higher leverage trend.

Cash Flow

Cash generation is strong in 2024–2025, with operating cash flow near $0.9–$1.0B and free cash flow of ~$0.83–$0.95B, and positive free-cash-flow growth in both years. Free cash flow also closely tracks earnings (free cash flow running at ~91% of net income in 2025). The key concern is instability: 2023 showed negative operating and free cash flow, highlighting potential working-capital or cyclicality-driven swings that can pressure liquidity in weaker years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.40B	4.98B	4.58B	5.78B	5.63B
Gross Profit	2.48B	2.41B	2.12B	2.62B	2.63B
EBITDA	985.00M	937.00M	761.00M	1.14B	1.16B
Net Income	419.00M	528.00M	296.00M	463.00M	837.00M
Balance Sheet
Total Assets	8.50B	7.97B	7.31B	7.53B	6.21B
Cash, Cash Equivalents and Short-Term Investments	125.00M	901.00M	137.00M	105.00M	332.00M
Total Debt	2.82B	2.36B	2.41B	2.34B	1.15B
Total Liabilities	4.91B	4.38B	4.27B	4.80B	3.23B
Stockholders Equity	3.59B	3.59B	3.04B	2.73B	2.98B
Cash Flow
Free Cash Flow	831.00M	954.00M	-91.00M	413.00M	1.01B
Operating Cash Flow	917.00M	1.01B	-4.00M	488.00M	1.07B
Investing Cash Flow	-1.46B	-57.00M	-92.00M	-968.00M	-546.00M
Financing Cash Flow	-239.00M	-190.00M	117.00M	253.00M	-371.00M

Zebra Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 206.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBRA, the sentiment is Negative. The current price of 206.19 is below the 20-day moving average (MA) of 221.20, below the 50-day MA of 238.55, and below the 200-day MA of 279.37, indicating a bearish trend. The MACD of -10.64 indicates Positive momentum. The RSI at 34.84 is Neutral, neither overbought nor oversold. The STOCH value of 24.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZBRA.

Zebra Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSI	75 Outperform	$76.06B	29.58	103.24%	1.18%	6.17%	35.41%
ERIC	70 Outperform	$38.44B	11.10	29.57%	2.51%	1.04%	―
ZBRA	66 Neutral	$10.14B	29.45	11.50%	―	13.35%	34.73%
HPE	65 Neutral	$29.35B	17.34	-0.64%	2.17%	14.17%	-102.25%
NOK	63 Neutral	$45.83B	49.36	4.38%	2.26%	5.05%	115.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PI	52 Neutral	$3.03B	-469.76	-5.77%	―	4.24%	-141.83%

Zebra Tech Corporate Events

Zebra Tech Adds $1 Billion to Share Repurchase Plan

On February 12, 2026, Zebra Technologies reported fourth-quarter 2025 net sales of $1.475 billion, up 10.6% year over year, with organic growth of 2.5% driven by gains in both its Connected Frontline and Asset Visibility & Automation segments. Net income fell to $70 million due to $76 million of exit and restructuring charges tied to actions including exiting its robotics business and integrating the Elo Touch acquisition, while non-GAAP diluted EPS rose 8.3% to $4.33 and adjusted EBITDA increased 10.5% to $326 million.

For full-year 2025, Zebra generated $5.396 billion in net sales, free cash flow of $831 million and completed the Elo Touch and Photoneo acquisitions for $1.365 billion, alongside $587 million of share repurchases and $328 million in net debt reduction. The board approved an additional $1 billion share repurchase authorization on February 12, 2026, signaling confidence in the company’s cash generation and shareholder return strategy as Zebra enters 2026 with a healthy backlog, integration momentum and guidance for double-digit reported sales growth in the first quarter and high single- to low-teens growth for the full year.

The most recent analyst rating on (ZBRA) stock is a Buy with a $351.00 price target. To see the full list of analyst forecasts on Zebra Tech stock, see the ZBRA Stock Forecast page.