Lincolnshire, Ill., May 12, 2026 — Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating workflows to deliver intelligent operations, today announced results for the first quarter ended April 4, 2026.

•Net sales of $1,495 million; year-over-year increase of 14.3%

•Net income of $135 million and net income per diluted share of $2.72

•Non-GAAP diluted EPS increased year-over-year to $4.75

•Adjusted EBITDA increased year-over-year to $347 million

•Share repurchases of $300 million

“Our strong first quarter results demonstrate the durability of demand for our innovative technology, with organic growth across our segments and regions, led by strength in our manufacturing end market. Elo Touch also contributed solid profitable growth as we begin to drive synergies," said Bill Burns, Chief Executive Officer of Zebra Technologies. "These results underscore the value Zebra delivers as the foundation for intelligent operations across the frontline, helping customers operate more efficiently and effectively."

"We are building on our track record of value creation for shareholders with $300 million of share repurchases in each of the past two quarters, supported by our strong balance sheet and cash flow," said Nathan Winters, Chief Financial Officer of Zebra Technologies. "Our results reflect our focus on profitable growth, operating discipline and margin expansion, and we remain confident in our ability to support customer demand while delivering consistent performance in a dynamic environment." Net sales were $1,495 million in the first quarter of 2026 compared to $1,308 million in the prior year.

$ in millions, except per share amounts			1Q26			1Q25			Change
Select reported measures:
Net sales			$	1,495		$	1,308		14.3		%
Gross profit			742			645			15.0		%
Gross margin			49.6		%	49.3		%	30 bps
Net income			135			136			(0.7		%)
Net income margin			9.0		%	10.4		%	(140) bps
Net income per diluted share			$	2.72		$	2.62		3.8		%
Select Non-GAAP measures:
Adjusted net sales			$	1,495		$	1,308		14.3		%
Organic net sales growth									4.3		%
Adjusted gross profit			753			649			16.0		%
Adjusted gross margin			50.4		%	49.6		%	80 bps
Adjusted EBITDA			347			292			18.8		%
Adjusted EBITDA margin			23.2		%	22.3		%	90 bps
Non-GAAP net income			$	235		$	208		13.0		%
Non-GAAP earnings per diluted share			$	4.75		$	4.02		18.2		%

Net sales in the Connected Frontline ("CF") segment were $825 million in the first quarter of 2026 compared to $684 million in the prior year. Asset Visibility & Automation ("AVA") segment net sales were $670 million in the first quarter of 2026 compared to $624 million in the prior year. Consolidated organic net sales for the first quarter of 2026 increased 4.3% year-over-year, with a 3.8% increase in the CF segment and a 4.8% increase in the AVA segment.

First quarter 2026 gross profit was $742 million compared to $645 million in the prior year. Gross margin increased to 49.6% for the first quarter of 2026 compared to 49.3% in the prior year primarily due to favorable foreign currency exchange and business mix, and productivity initiatives. Adjusted gross margin was 50.4% in the first quarter of 2026 compared to 49.6% in the prior year.

Operating expenses increased to $527 million in the first quarter of 2026 from $450 million in the prior year primarily due to expenses associated with acquired businesses including amortization of intangible assets. Adjusted operating expenses increased to $425 million in the first quarter of 2026 from $374 million in the prior year.

Net income for the first quarter of 2026 was $135 million, or $2.72 per diluted share, compared to net income of $136 million, or $2.62 per diluted share, in the prior year. Non-GAAP net income increased to $235 million for the first quarter of 2026, or $4.75 per diluted share, compared to $208 million, or $4.02 per diluted share, for the prior year.

Adjusted EBITDA for the first quarter of 2026 increased to $347 million, or 23.2% of adjusted net sales, compared to $292 million, or 22.3% of adjusted net sales in the prior year due to higher gross margin and lower adjusted operating expense as a percentage of sales.

As of April 4, 2026, the Company had cash and cash equivalents of $114 million and total debt of $2,660 million.

For the first three months of 2026, net cash provided by operating activities was $176 million and the Company invested $13 million in capital expenditures, resulting in free cash flow of $163 million. The Company also made share repurchases of $300 million.

Mr. Burns added, "We are seeing continued momentum into the second quarter, supporting our increased outlook for the full year. Zebra's integrated portfolio of solutions is a key differentiator, enabling customers to connect data, assets and workflows to drive visibility and productivity. As e-commerce, automation and Physical AI trends accelerate, we are well positioned to drive profitable growth, build on our market leadership and innovation, and strengthen our financial position to deliver long-term shareholder value."

Second Quarter 2026

The Company expects second quarter sales growth between 14% and 17% compared to the prior year. This expectation includes approximately 10.5 points of net favorable impact from business acquisitions and foreign currency.

Adjusted EBITDA margin for the second quarter is expected to be slightly higher than 21%. Non-GAAP diluted earnings per share are expected to be in the range of $4.20 to $4.50. This assumes an adjusted effective tax rate of approximately 19%.

Full Year 2026

The Company expects full year sales growth between 10% and 14% compared to the prior year. This expectation includes approximately 7 points of favorable net impact from business acquisitions and foreign currency.

Adjusted EBITDA margin for the full year is expected to be approximately 22%. Non-GAAP diluted earnings per share are expected to be in the range of $18.30 to $18.70. This assumes an adjusted effective tax rate of approximately 19%.

Free Cash Flow for the full year is expected to be greater than $900 million.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of the most directly comparable forward-looking GAAP financial measure as discussed under the "Forward-Looking Statements" caption below. This would include items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Investors are invited to listen to a live webcast of Zebra’s conference call regarding the Company’s financial results. The conference call will be held today at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). To view the webcast, visit the investor relations section of the Company’s website at investors.zebra.com.

Zebra (NASDAQ: ZBRA) provides the foundation for intelligent operations with an award-winning portfolio of connected frontline, asset visibility and automation solutions which empower our customers to deploy AI on the frontline. Organizations globally across retail, manufacturing, transportation, logistics, healthcare, and other industries rely on us to deliver outcomes today while driving innovation for what’s next. Together with our partners, we create new ways of working that improve productivity and empower organizations to be better every day. Learn more at www.zebra.com.

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This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company’s outlook. Actual results may differ from those expressed or implied in the company’s forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.

These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra’s industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra’s offerings and competitors' offerings, and the potential effects of emerging technologies and changes in customer requirements. The effect of global market conditions, and the availability of credit and capital markets volatility may have adverse effects on Zebra, its suppliers and its customers. In addition, natural disasters, man-made disasters, public health issues (including pandemics), and cybersecurity incidents may have negative effects on Zebra's business and results of operations. Zebra's ability to purchase sufficient materials, parts, and components, and ability to provide services, software and products to meet customer demand could negatively impact Zebra's results of operations and customer relationships. Profits and profitability will be affected by Zebra’s ability to control manufacturing and operating costs. Because of its debt, interest rates and financial market conditions may also have an adverse impact on results. Foreign exchange rates, customs duties and trade policies may have an adverse effect on financial results because of the global nature of Zebra's business. The impacts of changes in foreign and domestic governmental policies, regulations, or laws, as well as the outcome of litigation or tax matters in which Zebra may be involved are other factors that could adversely affect Zebra's business and results of operations. The success of integrating acquisitions could also adversely affect profitability, reported results and the company’s competitive position in its industry. These and other factors could have an adverse effect on Zebra’s sales, gross profit margins and results of operations and increase the volatility of Zebra's financial results. When used in this release and documents referenced, the words “anticipate,” “believe,” “outlook,” and “expect” and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of certain risks, uncertainties and other factors that could adversely affect the Company’s future operations and results can be found in Zebra’s filings with the Securities and Exchange Commission, including the Company’s most recent Form 10-K and Form 10-Q.

This press release contains certain Non-GAAP financial measures, consisting of “Adjusted EBITDA,” “Adjusted EBITDA margin,” “adjusted gross margin,” “adjusted gross profit,” “adjusted net sales,” “adjusted operating expenses,” “adjusted operating income,” “EBITDA,” “free cash flow,” “non-GAAP diluted earnings per share,” “non-GAAP earnings per share,” “non-GAAP net income,” “organic net sales,” and “organic net sales growth.” Management presents these measures to focus on the on-going operations and believes it is useful to investors because they enable them to perform meaningful comparisons of past and present operating results. The company believes it is useful to present non-GAAP financial measures, which exclude certain significant items, as a means to understand the performance of its ongoing operations and how management views the business. Please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables and accompanying disclosures at the end of this press release for more detailed information regarding non-GAAP financial measures herein, including the items reflected in adjusted net earnings calculations. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.

The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis (including the information under “Outlook” above) where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred, are out of the company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share, the most directly comparable forward-looking GAAP financial measure. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

As a global company, Zebra's operating results reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which the company transacts change in value over time compared to the U.S. dollar; accordingly, the company presents certain organic growth financial information, which includes impacts of foreign currency translation, to provide a framework to assess how the company’s businesses performed excluding the impact of foreign currency exchange rate fluctuations. Foreign currency impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. dollar. This impact is calculated by translating current period results at the currency exchange rates used in the comparable prior year period as well as removing realized cash flow hedge gains and losses from both the current and prior year periods.

The company believes these measures should be considered a supplement to and not in lieu of the company’s performance measures calculated in accordance with GAAP.

(In millions, except per share data)

 

(In millions, except share data)

(Unaudited)

 

(In millions)

(Unaudited)

			Three Months Ended
			April 4, 2026						March 29, 2025
Cash flows from operating activities:
Net income			$	135					$	136
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			56						41
Loss on sale of investments			15						—
Share-based compensation			58						51
Deferred income taxes			—						(23)
Gain on sale of business			(5)						—
Other, net			1						1
Changes in operating assets and liabilities:
Accounts receivable, net			67						84
Inventories, net			34						15
Other assets			(12)						3
Accounts payable			(119)						(76)
Accrued liabilities			(67)						(110)
Deferred revenue			(11)						16
Income taxes			24						42
Other operating activities			—						(2)
Net cash provided by operating activities			176						178
Cash flows from investing activities:
Acquisition of business			—						(62)
Proceeds from the sale of business			9						—
Purchases of property, plant and equipment			(13)						(20)
Proceeds from sale of long-term investments			1						—
Other investing activities			1						—
Net cash used in investing activities			(2)						(82)
Cash flows from financing activities:
Payments of debt			(37)						—
Proceeds from issuance of debt			186						—
Payments for repurchases of common stock			(300)						(125)
Net payments related to share-based compensation plans			(5)						(1)
Change in unremitted cash collections from servicing factored receivables			(29)						2
Other financing activities			—						5
Net cash used in financing activities			(185)						(119)
Effect of exchange rate changes on cash and cash equivalents			—						1
Net decrease in cash and cash equivalents			(11)						(22)
Cash and cash equivalents at beginning of period			125						901
Cash and cash equivalents at end of period			$	114					$	879
Supplemental disclosures of cash flow information:
Income taxes paid			$	15					$	9
Interest paid			$	26					$	16

(Unaudited)

(1)Operating results reported in U.S. Dollars are affected by foreign currency exchange rate fluctuations. Foreign currency translation impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. Dollar. This impact is calculated by translating the current period results at the currency exchange rates used in the comparable prior year period as well as removing realized cash flow hedge gains and losses from both the current and prior year periods.

(2)For purposes of computing Organic Net sales growth, amounts attributable to business acquisitions or dispositions are excluded for twelve months following or preceding the respective acquisition or disposition, respectively.

(Unaudited)

(1)Segment and Adjusted Gross profit excludes share-based compensation expense and business acquisition purchase accounting adjustments.

(2)Segment and Non-GAAP Operating income excludes share-based compensation expense, business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, exit and restructuring costs, as well as certain other non-recurring costs (impairment of goodwill and other intangible assets).

($ In millions, except share data)

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(1)Presented on a pre-tax basis.

(2)Represents adjustments to GAAP income tax expense commensurate with pre-tax non-GAAP adjustments (including the resulting impacts to U.S. BEAT/GILTI provisions), as well as adjustments to exclude the impacts of certain discrete income tax items and incorporate the anticipated annualized effects of current year tax planning.

(Unaudited)

(1) Free cash flow, a non-GAAP measure, is defined as Net cash provided by (used in) operating activities in a period minus purchases of property, plant and equipment (capital expenditures) made in that period.