Zebra Technologies stock posts strong Q3 sales and raises outlook

Published on 11/03/2026 at 14:16 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Zebra Technologies stock reported strong third-quarter growth and raised its full-year outlook. Investors now await execution on margin pressures.

Quarterly growth and outlook

Third-quarter net sales rose 22.3 percent year over year to 1.614 billion US dollars.
Non-GAAP diluted earnings per share increased to 4.95 US dollars, while gross margin narrowed because of memory costs and product mix.
Zebra expects fourth-quarter sales growth of 10 to 14 percent and non-GAAP diluted earnings per share of 5.00 to 5.40 US dollars.

Zebra Technologies, US9892071054, Illustration mit AI erstellt.

Zebra Technologies reported third-quarter results on Tuesday, November 3, 2026, with sales growth across both operating segments and a higher full-year outlook. The company said in a Business Wire release that revenue for the quarter ended October 3 reached 1.614 billion US dollars, up 22.3 percent from a year earlier.

Growth reaches both segments

Connected Frontline revenue increased to 949 million US dollars from 705 million US dollars, while Asset Visibility and Automation revenue rose to 665 million US dollars from 615 million US dollars. Organic sales growth was 11.3 percent, including 15.0 percent in Connected Frontline and 7.0 percent in Asset Visibility and Automation.

Net income rose to 164 million US dollars from 101 million US dollars. Reported diluted earnings per share reached 3.43 US dollars, while non-GAAP diluted earnings per share increased to 4.95 US dollars from 3.88 US dollars. Adjusted EBITDA rose to 349 million US dollars, with the adjusted EBITDA margin unchanged at 21.6 percent.

Costs pressure gross margin

Gross margin declined to 45.7 percent from 48.0 percent. Zebra attributed the change primarily to higher memory component costs and business mix, partly offset by favorable foreign exchange. Adjusted gross margin was 46.0 percent, compared with 48.2 percent a year earlier.

Higher outlook sets next test

Zebra expects fourth-quarter sales growth of 10 to 14 percent year over year, adjusted EBITDA margin of approximately 22 percent and non-GAAP diluted earnings per share between 5.00 and 5.40 US dollars. The company also expects full-year free cash flow of at least 1 billion US dollars. Management cited demand for automation and productivity solutions, while the margin outlook leaves memory costs as an important execution factor.

Zebra Technologies stock traded at 279.00 euros on Lang & Schwarz at 14:09 CET on Tuesday, November 3, 2026. The real-time quote of Zebra Technologies stock is available for investors.