Zebra Tech (ZBRA)
NASDAQ:ZBRA
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Zebra Tech
(NASDAQ:ZBRA)
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Rating:66Neutral
Price Target:
$215.00
▲(3.72% Upside)
Action:DowngradedDate: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
Strong free cash flow generation
Sustained near‑billion dollar operating cash flow and consistent free cash flow in 2024–2025 provide durable internal financing for buybacks, M&A, and capex. High FCF conversion (~91% of net income) strengthens capital allocation flexibility and supports shareholder returns and strategic reinvestment.
Negative Factors
Rising leverage reduces flexibility
Material increase in leverage over recent years narrows financial flexibility if revenue or cash flow weaken. Higher debt ratios can constrain capital allocation choices, elevate interest exposure in adverse cycles, and reduce the buffer for funding strategic moves without increasing cost or refinancing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained near‑billion dollar operating cash flow and consistent free cash flow in 2024–2025 provide durable internal financing for buybacks, M&A, and capex. High FCF conversion (~91% of net income) strengthens capital allocation flexibility and supports shareholder returns and strategic reinvestment.
Read all positive factors
Zebra Tech (ZBRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.20B
Dividend YieldN/A
Average Volume (3M)779.03K
Price to Earnings (P/E)29.5
Beta (1Y)1.50
Revenue Growth13.35%
EPS Growth34.73%
CountryUS
Employees9,900
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)4.33
Shares Outstanding49,191,704
10 Day Avg. Volume687,449
30 Day Avg. Volume779,034
Financial Highlights & Ratios
PEG Ratio-1.50
Price to Book (P/B)3.44
Price to Sales (P/S)2.29
P/FCF Ratio14.85
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue2.44
Enterprise Value/Gross Profit5.17
Enterprise Value/Ebitda12.73
Forecast
1Y Price Target
$330.25Price Target Upside59.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)17.93
Revenue Forecast (FY)$6.00B
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 & Track...
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 (...
Zebra Tech Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Highlights the profit generated by each segment before accounting for overhead, showing which parts of the business are most lucrative.
Highlights the profit generated by each segment before accounting for overhead, showing which parts of the business are most lucrative.
Data provided by:
The Fly
The FlyZebra Tech Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive tone: the company beat Q4 outlook, delivered solid top-line and EPS growth, generated strong free cash flow, executed strategic acquisitions (Elo, Fotoneo), and outlined clear growth drivers (RFID, machine vision, Frontline AI). Key near-term negatives include modest gross margin compression, elevated repair costs affecting services/software margins, one-time restructuring charges of $76M tied to the robotics exit, and a potential ~2-point gross margin headwind from memory costs and supply dynamics beginning in Q2 — although management provided mitigation plans and baked these into guidance. Given the magnitude of cash generation, share repurchases, portfolio expansion, and guidance that explicitly anticipates and plans to offset headwinds, the positives materially outweigh the risks discussed on the call.Positive Updates
Quarterly Revenue Growth (Q4)
Q4 sales of approximately $1.5B, up 10.6% year-over-year (2.5% organic), driven by strength across most categories and exceeding outlook.
Negative Updates
Gross Margin Pressure
Adjusted gross margin declined by 50 basis points to 48.2% in Q4, primarily due to lower services and software margins and higher repair costs from an aging installed base.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth (Q4)
Q4 sales of approximately $1.5B, up 10.6% year-over-year (2.5% organic), driven by strength across most categories and exceeding outlook.
Read all positive updates
Company Guidance
Zebra guided Q1 sales growth of 11–15% (including ~10 points from acquisitions and favorable FX), adjusted EBITDA margin of 21–22% and non‑GAAP diluted EPS of $4.05–$4.35; for FY2026 it expects sales growth of 9–13% (including a ~7‑point benefit from acquisitions and FX), adjusted EBITDA margin of ~22%, non‑GAAP diluted EPS of $17.70–$18.30, and at least $900M of free cash flow (≈100% conversion). Management flagged an industry memory cost headwind of roughly 2 percentage points to gross margin beginning in Q2 but said it expects to fully mitigate that within the year via March price increases, robotics‑exit savings, tariff mitigation, vendor actions, productivity measures and FX, noted a solid backlog/pipeline supporting the outlook, and announced a $1.0B expansion of the share‑repurchase authorization (totaling $1.1B after ~$100M YTD) with plans to repurchase ~50% of FY free cash flow (primarily in H1).Zebra Tech Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| 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
Negative
207.28
Price Trends
230.17
Negative
241.67
Negative
275.81
Negative
Market Momentum
-8.00
Negative
43.89
Neutral
31.36
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 207.28 is below the 20-day moving average (MA) of 209.75, below the 50-day MA of 230.17, and below the 200-day MA of 275.81, indicating a bearish trend. The MACD of -8.00 indicates Negative momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 31.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZBRA.
Zebra Tech Risk Analysis
Zebra Tech disclosed 38 risk factors in its most recent earnings report. Zebra Tech reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zebra Tech Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $71.92B | 29.58 | 103.24% | 1.18% | 6.17% | 35.41% | |
70 Outperform | $38.09B | 11.10 | 29.57% | 2.51% | 1.04% | ― | |
66 Neutral | $10.20B | 29.45 | 11.50% | ― | 13.35% | 34.73% | |
66 Neutral | $31.82B | 17.34 | -0.64% | 2.17% | 14.17% | -102.25% | |
63 Neutral | $46.08B | 49.36 | 4.38% | 2.26% | 5.05% | 115.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $3.08B | -469.76 | -5.77% | ― | 4.24% | -141.83% |
* Technology Sector Average
ZBRA
Zebra Tech
207.28
-80.29
-27.92%
ERIC
Telefonaktiebolaget LM Ericsson
11.45
3.75
48.78%
MSI
Motorola Solutions
434.13
1.87
0.43%
NOK
Nokia
8.27
3.04
58.10%
HPE
Hewlett Packard Enterprise
23.98
8.26
52.53%
PI
IMPINJ
101.94
10.88
11.95%
Zebra Tech Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Zebra Tech Adds $1 Billion to Share Repurchase Plan
Positive
Feb 12, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.