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Zebra Tech
(NASDAQ:ZBRA)
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Rating:74Outperform
Price Target:
$249.00
▲(6.22% Upside)
Action:Reiterated
Date:05/27/26
Overall score reflects solid and improving fundamentals led by strong free-cash-flow generation, plus a favorable earnings outlook with raised full-year guidance and continued buybacks. Momentum is supportive (positive MACD; price above key short/intermediate averages), while the main offsets are only mid-level valuation support (no dividend) and execution risk from memory cost/supply volatility that could pressure near-term margins.
Positive Factors
Free cash flow strength
Sustained high free cash flow and strong conversion (FCF roughly 0.91x net income) provide durable internal funding for buybacks, debt reduction, capex and software investment. Reliable cash generation improves resilience through cycles and supports long‑term capital allocation choices.
Negative Factors
Memory cost & supply volatility
Volatile memory pricing and supply can structurally compress gross margins and push OEMs to substitute or delay purchases. Repeated component shocks reduce forecast accuracy, raise working capital needs and risk lower attach rates for consumables/services if deployments are postponed.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Sustained high free cash flow and strong conversion (FCF roughly 0.91x net income) provide durable internal funding for buybacks, debt reduction, capex and software investment. Reliable cash generation improves resilience through cycles and supports long‑term capital allocation choices.
Read all positive factors
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 (ZBRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.39B
Dividend YieldN/A
Average Volume (3M)836.13K
Price to Earnings (P/E)30.9
Beta (1Y)1.40
Revenue Growth10.66%
EPS Growth-21.83%
CountryUS
Employees10,700
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)8.26
Shares Outstanding47,633,392
10 Day Avg. Volume613,264
30 Day Avg. Volume836,130
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 Cap1.12
Enterprise Value/Revenue2.48
Enterprise Value/Gross Profit5.22
Enterprise Value/Ebitda14.11
Forecast
1Y Price Target
$327.56Price Target Upside39.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)18.57
Revenue Forecast (FY)$6.07B
Zebra Tech Business Overview & Revenue Model
Company Description
Zebra Technologies Corporation, alongside its affiliated entities, delivers enterprise asset intelligence solutions globally within the automatic identification and data capture (AIDC) sector. Operating through its Asset Intelligence & Tracking an...
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 Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line and bottom-line results (nearly $1.5B revenue, +14% YoY; EPS +18%), margin expansion, robust cash generation and aggressive buybacks, and management raised the full-year outlook. These positives are tempered by a key operational risk: memory supply and cost volatility that is expected to pressure margins sequentially (notably into Q2) and could constrain back-half volumes. Additional modest risks include reliance on acquisitions/FX for part of near-term growth and trade/tariff uncertainty. Overall, the company's execution, pipeline strength, and margin actions appear to outweigh the near-term headwinds but the memory issue remains an execution risk to monitor.Positive Updates
Strong Q1 Revenue Growth
Q1 sales of nearly $1.5 billion, up 14.3% year-over-year (reported) and +4.3% on an organic (constant currency) basis, with broad-based growth across segments and regions.
Negative Updates
Memory Cost and Supply Uncertainty
Memory remains a dynamic headwind: modest impact in Q1 but management expects a sequential step-up in memory costs in Q2 (management cited ~1.5 points of sequential EBITDA headwind) and constrained availability could reduce back-half volumes; mitigation plans are in place but execution risk remains.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Revenue Growth
Q1 sales of nearly $1.5 billion, up 14.3% year-over-year (reported) and +4.3% on an organic (constant currency) basis, with broad-based growth across segments and regions.
Read all positive updates
Company Guidance
Zebra guided Q2 sales growth of 14%–17% year‑over‑year (including ~10.5 points from acquisitions and favorable FX), Q2 adjusted EBITDA margin slightly above 21% and Q2 non‑GAAP diluted EPS of $4.20–$4.50; for FY2026 it now expects sales growth of 10%–14% (midpoint +1 point vs. prior outlook) with a ~7‑point benefit from acquisitions/FX, adjusted EBITDA margin of ~22%, non‑GAAP diluted EPS of $18.30–$18.70, and free cash flow of at least $900 million (≈100% conversion). The guide assumes full mitigation of a 2‑point memory cost headwind (including ~1 point of pricing), and builds on Q1 results of nearly $1.5B sales (+14% y/y, +4% organic), 50.4% adjusted gross margin (+80 bps), 23.2% adjusted EBITDA margin, $4.75 non‑GAAP EPS (+18% y/y), $163M Q1 free cash flow, $500M of share repurchases YTD, net leverage ~2.1x and $1.1B of credit capacity.Zebra Tech Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.58B | 5.40B | 4.98B | 4.58B | 5.78B | 5.63B |
| Gross Profit | 2.65B | 2.48B | 2.41B | 2.12B | 2.62B | 2.63B |
| EBITDA | 980.00M | 853.00M | 937.00M | 761.00M | 1.14B | 1.16B |
| Net Income | 418.00M | 419.00M | 528.00M | 296.00M | 463.00M | 837.00M |
Balance Sheet | ||||||
| Total Assets | 8.33B | 8.50B | 7.97B | 7.31B | 7.53B | 6.21B |
| Cash, Cash Equivalents and Short-Term Investments | 114.00M | 125.00M | 901.00M | 137.00M | 105.00M | 332.00M |
| Total Debt | 2.85B | 2.82B | 2.36B | 2.41B | 2.34B | 1.15B |
| Total Liabilities | 4.86B | 4.91B | 4.38B | 4.27B | 4.80B | 3.23B |
| Stockholders Equity | 3.47B | 3.59B | 3.59B | 3.04B | 2.73B | 2.98B |
Cash Flow | ||||||
| Free Cash Flow | 836.00M | 831.00M | 954.00M | -91.00M | 413.00M | 1.01B |
| Operating Cash Flow | 915.00M | 917.00M | 1.01B | -4.00M | 488.00M | 1.07B |
| Investing Cash Flow | -1.38B | -1.46B | -57.00M | -92.00M | -968.00M | -546.00M |
| Financing Cash Flow | -305.00M | -239.00M | -190.00M | 117.00M | 253.00M | -371.00M |
Zebra Tech Technical Analysis
Neutral
234.43
Price Trends
246.47
Positive
233.07
Positive
247.89
Positive
Market Momentum
6.40
Positive
50.52
Neutral
32.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBRA, the sentiment is Neutral. The current price of 234.43 is below the 20-day moving average (MA) of 255.65, below the 50-day MA of 246.47, and below the 200-day MA of 247.89, indicating a neutral trend. The MACD of 6.40 indicates Positive momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 32.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $12.39B | 30.89 | 11.59% | ― | 10.66% | -21.83% | |
71 Outperform | $65.75B | 69.47 | 5.06% | 2.26% | 12.83% | 9.07% | |
70 Outperform | $68.67B | 32.42 | 90.39% | 1.18% | 8.32% | 2.54% | |
66 Neutral | $34.21B | 13.13 | 25.11% | 2.51% | 2.72% | 56.42% | |
66 Neutral | $65.63B | 43.49 | 6.12% | 2.17% | 23.33% | 2.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $4.40B | -159.19 | -13.90% | ― | -0.69% | -3584.62% |
* Technology Sector Average
ZBRA
Zebra Tech
255.17
-64.30
-20.13%
ERIC
Telefonaktiebolaget LM Ericsson
10.07
2.86
39.71%
MSI
Motorola Solutions
407.18
-4.46
-1.08%
NOK
Nokia
11.25
6.59
141.47%
HPE
Hewlett Packard Enterprise
47.39
27.46
137.72%
PI
IMPINJ
144.51
32.14
28.60%
Zebra Tech Corporate Events
Executive/Board ChangesShareholder Meetings
Zebra Tech Shareholders Approve 2026 Incentive Plan, Directors
Positive
May 26, 2026
At its Annual Meeting of Stockholders held on May 19, 2026, Zebra Technologies shareholders approved the 2026 Long-Term Incentive Plan, authorizing up to 2,430,000 shares for a range of equity-based awards, subject to reduction for overlapping gra...
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.