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Zebra Tech
(NASDAQ:ZBRA)
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Rating:75Outperform
Price Target:
$328.00
▲(26.19% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by healthy financial performance with strong current free-cash-flow generation, reinforced by a very positive earnings update with raised full-year guidance and continued capital returns. Technicals add support given a clear uptrend, while the main offsets are premium valuation (P/E ~35.6) and operational risks highlighted on the call (memory cost/supply volatility and Q2 margin lift partly from a one-time tariff recovery).
Positive Factors
Free Cash Flow Generation
Sustained high free cash flow and strong operating cash conversion provide durable funding for R&D, supply chain resilience, and capital returns. This level of cash generation supports reinvestment and buybacks while giving management flexibility to execute multi‑year strategy.
Negative Factors
Margin Sustainability
Q2 margin expansion was meaningfully aided by a one‑time tariff recovery; excluding that, margin improvement is far smaller. Reliance on non‑recurring items masks underlying margin pressure and complicates forecasting sustainable profitability beyond the near term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained high free cash flow and strong operating cash conversion provide durable funding for R&D, supply chain resilience, and capital returns. This level of cash generation supports reinvestment and buybacks while giving management flexibility to execute multi‑year strategy.
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
$17.90B
Dividend YieldN/A
Average Volume (3M)725.58K
Price to Earnings (P/E)35.5
Beta (1Y)1.60
Revenue Growth13.45%
EPS Growth3.31%
CountryUS
Employees10,700
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)10.69
Shares Outstanding47,310,660
10 Day Avg. Volume619,195
30 Day Avg. Volume725,580
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$398.30Price Target Upside53.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)20.95
Revenue Forecast (FY)$6.21B
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 by selling a mix of hardware products, recurring and usage-driven supplies, and software and services to enterprises and government customers.
1) Product (hardware) revenue: A major portion of Zebra’s revenue comes from selling ...
Zebra Tech Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial performance with record revenue, substantial EPS and margin improvement, a raised full-year outlook, robust cash generation and active capital returns. These positives are tempered by ongoing memory supply and cost risks, a sizable one-time tariff benefit that boosted Q2 margins, and some regional/segment variability. Management laid out concrete mitigation (supplier co-planning, pricing, supplier qualification, restructuring) and continues to see broad demand and long-term growth opportunities in AI, machine vision, RFID and healthcare.Positive Updates
Record Quarterly Revenue and Organic Growth
Total company sales > $1.5 billion, up 20.4% year-over-year and +9.2% on an organic basis, exceeding the high end of guidance.
Negative Updates
Ongoing Memory Supply and Cost Risk
Memory supply remains dynamic and potentially constraining for the back half of 2026 and into 2027; management expects memory costs to increase Q2→Q3 and is working to mitigate through pricing, supplier qualification and sourcing.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Organic Growth
Total company sales > $1.5 billion, up 20.4% year-over-year and +9.2% on an organic basis, exceeding the high end of guidance.
Read all positive updates
Company Guidance
Zebra raised its outlook: Q3 sales guidance of +17% to +20% (including ~10.5 points from acquisitions and FX), with adjusted EBITDA of ~22% and non‑GAAP EPS of $4.70–$4.90; full‑year sales growth is now guided to 14%–16% (a ~3‑point midpoint increase), adjusted EBITDA margin 23.5%–24%, non‑GAAP EPS $20.75–$21.25 and free cash flow of at least $1.0 billion (~100% conversion). The guide assumes full mitigation of the roughly $120 million memory headwind via pricing and other actions and reflects momentum from Q2 (sales >$1.5B, +20.4% y/y or +9.2% organic; adjusted EBITDA margin 27.7% including a $73M tariff recovery; Q2 non‑GAAP EPS $6.35, +76% y/y). Capital‑allocation and balance‑sheet metrics supporting the plan include YTD share repurchases of $568M (with ~ $150M planned in H2 to reach ~ $700M for the year), $361M YTD free cash flow, net leverage ~1.9x and $925M of credit capacity.Zebra Tech Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.85B | 5.40B | 4.98B | 4.58B | 5.78B | 5.63B |
| Gross Profit | 2.86B | 2.48B | 2.41B | 2.12B | 2.62B | 2.63B |
| EBITDA | 1.15B | 853.00M | 937.00M | 761.00M | 1.14B | 1.16B |
| Net Income | 539.00M | 419.00M | 528.00M | 296.00M | 463.00M | 837.00M |
Balance Sheet | ||||||
| Total Assets | 8.64B | 8.50B | 7.97B | 7.31B | 7.53B | 6.21B |
| Cash, Cash Equivalents and Short-Term Investments | 157.00M | 125.00M | 901.00M | 137.00M | 105.00M | 332.00M |
| Total Debt | 2.96B | 2.82B | 2.36B | 2.41B | 2.34B | 1.15B |
| Total Liabilities | 5.20B | 4.91B | 4.38B | 4.27B | 4.80B | 3.23B |
| Stockholders Equity | 3.44B | 3.59B | 3.59B | 3.04B | 2.73B | 2.98B |
Cash Flow | ||||||
| Free Cash Flow | 904.00M | 831.00M | 954.00M | -91.00M | 413.00M | 1.01B |
| Operating Cash Flow | 979.00M | 917.00M | 1.01B | -4.00M | 488.00M | 1.07B |
| Investing Cash Flow | -1.37B | -1.46B | -57.00M | -92.00M | -968.00M | -546.00M |
| Financing Cash Flow | -323.00M | -239.00M | -190.00M | 117.00M | 253.00M | -371.00M |
Zebra Tech Technical Analysis
Positive
259.92
Price Trends
275.15
Positive
252.23
Positive
249.35
Positive
Market Momentum
32.94
Negative
81.39
Negative
94.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBRA, the sentiment is Positive. The current price of 259.92 is below the 20-day moving average (MA) of 313.89, below the 50-day MA of 275.15, and above the 200-day MA of 249.35, indicating a bullish trend. The MACD of 32.94 indicates Negative momentum. The RSI at 81.39 is Negative, neither overbought nor oversold. The STOCH value of 94.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
86 Outperform | $1.08B | 16.57 | 28.54% | 5.48% | 15.79% | 15.69% | |
83 Outperform | $3.23B | 65.49 | 7.39% | ― | 20.26% | 11.95% | |
75 Outperform | $17.90B | 35.51 | 15.14% | ― | 13.45% | 3.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $421.47M | -22.90 | -3.92% | ― | 15.14% | 52.80% | |
57 Neutral | $657.73M | -16.43 | -8.42% | ― | -0.70% | -141.66% | |
42 Neutral | $82.60M | 32.64 | 65.39% | ― | -0.81% | -61.23% |
* Technology Sector Average
ZBRA
Zebra Tech
379.63
51.92
15.84%
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85.14
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159.10%
AIOT
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ITRN
Ituran Location And Control
53.69
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38.83%
NTGR
Netgear
23.82
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-2.62%
INSG
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4.73
-4.05
-46.13%
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.