Zebra Technologies Reports Q3 2026 Results, Raises Full-Year Outlook

Executive Summary

On November 3, 2026, Zebra Technologies Corporation (NASDAQ: ZBRA) filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) announcing its third-quarter financial results for the period ended October 3, 2026, and raising its full-year outlook.

Key Financial Highlights

• Net Sales: $1,614 million, up 22.3% year-over-year compared to $1,320 million in Q3 2025. Consolidated organic net sales grew 11.3%.
  • Connected Frontline (CF): $949 million vs. $705 million (+15.0% organic).
  • Asset Visibility & Automation (AVA): $665 million vs. $615 million (+7.0% organic).
• Profitability:
  • Gross Profit: $738 million (45.7% gross margin vs. 48.0% prior year, impacted by component costs and mix).
  • Net Income: $164 million ($3.43 per diluted share), up 62.4% year-over-year from $101 million ($1.97 per diluted share).
  • Non-GAAP Net Income / EPS: $237 million ($4.95 per diluted share), compared to $198 million ($3.88 per diluted share) in Q3 2025.
  • Adjusted EBITDA: $349 million (21.6% margin), up 22.5% from $285 million (21.6% margin).
• Cash Flow & Capital Allocation:
  • Nine-month operating cash flow reached $711 million; free cash flow was $661 million after $50 million in capital expenditures.
  • Share repurchases totaled $75 million in Q3 and $643 million across the first nine months of 2026.
  • Cash and cash equivalents stood at $182 million with total debt of $2,578 million as of October 3, 2026.

Forward Guidance

• Q4 2026 Sales Growth: Projected between 10% and 14% year-over-year (includes ~150 bps favorable FX impact).
• Q4 Adjusted EBITDA Margin: Expected at approximately 22%.
• Q4 Non-GAAP Diluted EPS: Guided in the range of $5.00 to $5.40.
• Full-Year Free Cash Flow: Anticipated to reach at least $1 billion.