Zebra Tech (ZBRA)
NASDAQ:ZBRA
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Zebra Tech
(NASDAQ:ZBRA)
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Rating:74Outperform
Price Target:
$276.00
▲(17.73% Upside)
Action:Upgraded
Date:05/14/26
The score is driven primarily by solid financial performance (strong and rebounding free cash flow despite lower net margins and moderate leverage) and a bullish earnings update (raised FY guidance, strong Q1 results, and continued buybacks). Technicals are supportive but mixed given the stock is still below its 200-day average, while valuation is broadly reasonable with no dividend support.
Positive Factors
Free cash flow generation
Sustained, high free cash flow provides durable optionality: funds share buybacks, debt paydown, and R&D without relying on equity markets. Close FCF-to-net-income conversion signals earnings quality and gives management flexibility to invest in product roadmap and integration of acquisitions over quarters.
Negative Factors
Moderate leverage
Meaningful leverage limits financial flexibility during downturns and increases interest expense sensitivity to rate moves. While manageable today, elevated debt relative to equity constrains capacity for large strategic investments or cushions against prolonged demand softness across industrial and retail end markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained, high free cash flow provides durable optionality: funds share buybacks, debt paydown, and R&D without relying on equity markets. Close FCF-to-net-income conversion signals earnings quality and gives management flexibility to invest in product roadmap and integration of acquisitions over quarters.
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
$12.35B
Dividend YieldN/A
Average Volume (3M)704.54K
Price to Earnings (P/E)18.9
Beta (1Y)1.42
Revenue Growth10.66%
EPS Growth-21.83%
CountryUS
Employees9,900
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)8.26
Shares Outstanding47,633,392
10 Day Avg. Volume812,040
30 Day Avg. Volume704,537
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 Cap1.22
Enterprise Value/Revenue2.70
Enterprise Value/Gross Profit5.68
Enterprise Value/Ebitda14.72
Forecast
1Y Price Target
$322.38Price Target Upside37.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)18.52
Revenue Forecast (FY)$6.06B
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 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 | 1.02B | 985.00M | 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 | 2.81B | 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
225.56
Positive
238.56
Negative
271.10
Negative
Market Momentum
3.27
Negative
65.68
Neutral
90.62
Negative
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 above the 20-day moving average (MA) of 214.54, above the 50-day MA of 225.56, and below the 200-day MA of 271.10, indicating a neutral trend. The MACD of 3.27 indicates Negative momentum. The RSI at 65.68 is Neutral, neither overbought nor oversold. The STOCH value of 90.62 is Negative, 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 | $12.35B | 18.92 | 11.59% | ― | 10.66% | -21.83% | |
72 Outperform | $41.56B | 96.42 | 25.11% | 2.51% | 4.40% | 1595.74% | |
69 Neutral | $43.92B | 17.34 | -0.64% | 2.17% | 15.04% | -108.60% | |
67 Neutral | $65.28B | 49.71 | 90.39% | 1.18% | 8.32% | 2.54% | |
67 Neutral | $77.19B | 113.02 | 4.38% | 2.26% | 12.83% | 9.07% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $4.23B | -30.79 | -13.90% | ― | -0.69% | -3584.62% |
* Technology Sector Average
ZBRA
Zebra Tech
259.35
-38.47
-12.92%
ERIC
Telefonaktiebolaget LM Ericsson
12.50
4.11
48.95%
MSI
Motorola Solutions
393.28
-27.41
-6.52%
NOK
Nokia
13.95
8.81
171.40%
HPE
Hewlett Packard Enterprise
33.10
16.07
94.37%
PI
IMPINJ
138.72
15.40
12.49%
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.