Zebra Technologies (NASDAQ:ZBRA) Announces Quarterly Earnings Results

Zebra Technologies (NASDAQ:ZBRA) announced its quarterly earnings data on Tuesday. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.89 by $0.06, Briefing.com reports. The company had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.57 billion. Zebra Technologies had a net margin of 9.22% and a return on equity of 22.29%. Zebra Technologies’s revenue was up 22.3% compared to the same quarter last year. During the same period in the previous year, the company posted $3.88 EPS.

Here are the key takeaways from Zebra Technologies’ conference call:

• Record Q3 performance: Sales exceeded $1.6 billion, up 22.3% year over year (11.3% organically), while non-GAAP EPS rose 28% to $4.95, surpassing company expectations on broad-based demand.
• Zebra raised its full-year outlook to approximately 17% sales growth and $21.20 in non-GAAP EPS, with fourth-quarter EPS guided to $5.00–$5.40 and free cash flow expected to reach at least $1 billion.
• Demand is particularly strong for mobile computing, transportation and logistics, healthcare, machine vision, and Elo Touch; management cited a robust multi-year pipeline of global transportation and logistics refresh projects beginning in 2027.
• The company reported progress securing memory supply, including five newly qualified suppliers and additional inventory, supporting its ability to meet mobile-computing demand into 2027; management expects 2027 growth at the high end of its 5%–7% long-term range.
• Memory costs increased by more than $50 million year over year in Q3 and are expected to create a $145 million full-year headwind, contributing to a 220-basis-point decline in adjusted gross margin; pricing actions and productivity savings are intended to fully offset the impact.

Zebra Technologies Stock Down 8.8%

Zebra Technologies stock opened at $329.50 on Wednesday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.33 and a current ratio of 0.52. The firm has a market capitalization of $15.69 billion, a price-to-earnings ratio of 30.15 and a beta of 1.61. Zebra Technologies has a fifty-two week low of $199.05 and a fifty-two week high of $392.78. The stock’s fifty day moving average is $366.71 and its two-hundred day moving average is $281.25.

Insiders Place Their Bets

In related news, Director Linda Connly sold 500 shares of the business’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $377.68, for a total value of $188,840.00. Following the sale, the director directly owned 3,708 shares in the company, valued at $1,400,437.44. The trade was a 11.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Michael Cho sold 3,500 shares of the stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $375.20, for a total transaction of $1,313,200.00. Following the completion of the sale, the insider directly owned 5,170 shares in the company, valued at approximately $1,939,784. The trade was a 40.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.91% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on ZBRA shares. Weiss Ratings raised shares of Zebra Technologies from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, October 13th. Wolfe Research reissued an “outperform” rating and set a $317.00 price target on shares of Zebra Technologies in a report on Thursday, July 9th. Morgan Stanley raised their price objective on shares of Zebra Technologies from $360.00 to $380.00 and gave the company an “equal weight” rating in a research report on Wednesday. Needham & Company LLC lifted their price objective on Zebra Technologies from $410.00 to $435.00 and gave the company a “buy” rating in a report on Tuesday, September 15th. Finally, Zacks Research lowered Zebra Technologies from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Nine analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $387.50.

Key Zebra Technologies News

Here are the key news stories impacting Zebra Technologies this week:

• Positive Sentiment: Revenue rose 22.3% year over year to $1.614 billion, beating estimates of $1.57 billion. Adjusted earnings of $4.95 per share also topped the $4.89 consensus. Zebra cited broad-based sales growth, including demand for Connected Frontline solutions and automation, and raised its full-year growth outlook. Zebra Technologies Q3 results
• Negative Sentiment: Despite the record quarter and improved outlook, investors reacted to the risk that higher memory costs will weigh on profit margins in 2027. That concern overshadowed the earnings and sales beats and contributed to the stock’s decline. Record quarter and margin warning Higher memory-cost outlook

About Zebra Technologies

Zebra Technologies Corp. (NASDAQ: ZBRA) develops technologies that help businesses identify, track and manage assets, inventory and operational processes. Its solutions are used by organizations in retail, manufacturing, transportation and logistics, healthcare, government and other industries to improve visibility and productivity across their operations.

The company’s portfolio includes barcode and label printers, barcode scanners, mobile computers, radio-frequency identification (RFID) readers and tags, machine-vision systems, fixed industrial scanners and related software.