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Zebra Technologies — Q3 2026 Earnings Presentation
Zebra Technologies (ZBRA) · 25 slides · Filed Nov 3, 2026
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Slide 1 — Zebra Technologies
November 3, 2026 Zebra Technologies Third Quarter Earnings Results
Slide 2 — Safe Harbor Statement
2 Forward -looking statements made in this presentation are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and are highly dependent upon a variety of important factors, which could cause actual results to differ materially from those expressed or implied in such forward -looking statements. When used in this presentation, the words “anticipate,” “expect,” “believe,” “intend,” “estimate,” “will,” “plan,” “goal,” “target,” and “strategy” and similar expressions or futur e c onditional verbs such as “may,” “will,” “should,” “would,” and “could” as they relate to the Company or its management are intended to identify such forward -looking statements but are not the exclusive means of identi fying these statements. Actual results may differ materially from those expressed or implied by forward -looking statements. Any forward -looking statemen ts represent the Company’s views only as of the date of this presentation and should not be relied upon as representing the Company’s views as of any subsequent date. The forward -looking st atements include, but are not limited to, the Company’s financial outlook for the full year, strategy, and future business prospects. These forward -looking statements are based on current expectations, forecasts and assumptions, an d are subject to the risks and uncertainties inherent in the Company’s industry, market conditions, general domestic and international economic conditions, and other factors. These factors include: • Market acceptance of the Company’s products, services, and software solutions and competitors’ offerings and the potential ef fec ts of emerging technologies and changes in customer requirements, • The effect of global market conditions, including in North America, Europe, Middle East, and Africa (“EMEA”), Latin America, and Asia -Pacific regions in which we do business, • The impact of changes in foreign exchange rates, customs duties and trade policies due to the large percentage of our sales a nd operations being outside the U.S., • The Company’s ability to effectively manage manufacturing and operating costs, • Risks related to the manufacturing of the Company’s products and conducting business operations in non -U.S. countries, including the risk of depending on key suppliers who are also in non -U.S. countries, • The Company’s ability to purchase sufficient materials, parts, and components, and our ability to provide services, software, and products to meet customer demand, particularly in light of global economic conditions, • The availability of credit and the volatility of capital markets, which may affect our suppliers, customers, and ourselves, • Success of integrating acquisitions, • The Company’s ability to attract, retain, develop, and motivate key personnel, • Interest rate and financial market conditions, • Access to cash and cash equivalents held outside the U.S., • The effect of natural disasters, man -made disasters, public health issues (including pandemics), and cybersecurity incidents on our business, our customers or our contracted third parties, • The impact of changes in foreign and domestic governmental policies, laws, or regulations, • The outcome of litigation in which the Company may be involved, particularly litigation or claims related to infringement of third-party intellectual property rights, and • The outcome of any future tax matters or tax law changes. Descriptions of certain risks, uncertainties and other factors that could adversely affect the Company’s future operations an d results can be found in the Company’s filings with the Securities and Exchange Commission. In particular, please refer to the Company’s latest filing of its Form 10 -K and Form 10 -Q. The Company undertakes no obligation, other than as may be required by law, to publicly update or revise any forward -looking sta tements, whether as a result of new information, future events, changed circumstances, or any other reason after the date of this presentation. This presentation includes certain non -GAAP financial measures. Please refer to the reconciliations to the comparable GAAP fina ncial measures and related information contained in the Appendix. Safe Harbor Statement
Slide 3 — 3
3 Strong broad -based growth in Q3, with continued momentum in our business supporting an increased full -year 2026 outlook 01 Customers are leveraging Zebra's AI -powered portfolio of solutions to improve productivity, visibility and decision -making on the frontline 02 03 Executing on our strategic priorities to drive long -term profitable growth, build on our industry leadership and track record of innovation, and enhance financial strength and flexibility What you’ll hear from us today
Slide 4 — Q3 2026 Highlights
4 (1) Refer to the appendix of this presentation for reconciliations of GAAP to non -GAAP financial measures (2) Excludes net impact to sales growth for 12 months following business acquisitions/dispositions and foreign currency translati on Results $1.61B Sales 21.6% Adjusted EBITDA Margin $4.95 Non -GAAP Diluted EPS $75M Share Repurchase 46.0% Adjusted Gross Margin 25.6% Adjusted Operating Expense % of Sales Highlights Outlook • Initiating Q4 guidance reflecting a strong start to the quarter and continued demand momentum • Increased FY26 sales and EPS guide, reflects our strong results and Q4 outlook • 22.3 % sales growth (11.3 % organic (2)) • Strong growth across segments, regions , end markets • S trong contribution from Elo Touch business • Flat EBITDA margin impacted by memory cost inflation • 28% Non -GAAP Diluted EPS growth Q3 2026 Highlights (1)
Slide 5 — Strong Growth Across Primary End Markets
5 Retail & E -Commerce Manufacturing Healthcare Transportation & Logistics • E-commerce and S pecialty Retail helped drive HSD growth • Continued strong growth from the Elo Touch acquisition • Momentum in Zebra AI Suite solutions • Highest growth end market with DD growth across Postal/Courier, 3PL and Distribution centers • Large deployments support warehouse, last mile, data center expansion and fleet modernization • Robust multi -year pipeline • Continued automation trends drove HSD growth • Electronics and food & beverage, were bright spots • Machine Vision outperformance • Clinical mobility drove DD growth and new opportunities in healthcare • Continued strong momentum in mobile computing solutions as we equip caregivers with enterprise -grade secure solutions Strong Growth Across Primary End Markets
Slide 6 — Enhancing Customer Value Through AI
Building on Zebra’s unique competitive advantage as the foundation for intelligent operations DECIDE AI -Powered Orchestration SENSE Real -Time Frontline Visibility ACT AI -Driven Frontline Execution LEARN Continuous Workflow Improvement 6 Enhancing Customer Value Through AI -Powered Solutions
Slide 7 — 7
7 Growing our business profitably Building on our industry leadership by advancing innovation Enhancing financial strength and flexibility 1. 2. Driving sustainable growth across a $35B+ served market Extending our #1 market positions in enterprise mobile computing, thermal barcode printing, data capture and RFID readers* Executing with discipline through a capital -light model to drive earnings consistency *Source: VDC Research and Zebra Analysis 3. Strategic Priorities
Slide 8 — Zebra offers a clear & compelling
Zebra offers a clear & compelling investment thesis • Market leader in mission -critical enterprise workflows, with a proven track record of innovation and execution • Positioned at the center of durable growth trends, including automation, digitization and AI -driven workflow adoption across a $35B+ served market • Uniquely positioned to be the AI leader for the frontline with integrated platform of hardware and software solutions, serving large and growing end markets • Strong, resilient financial model with attractive margins and cash generation • Disciplined capital allocation balancing reinvestment, balance sheet strength and shareholder returns Zebra offers a clear and compelling investment thesis • Industry leader in mission -critical enterprise workflows, with a proven track record of innovation and execution • Positioned at the center of durable growth trends, including automation, digitization and workflow transformation across a $35B+ served market • Uniquely positioned to be the supplier of choice of AI for the frontline with our integrated platform of hardware and software solutions, serving large and growing end markets • Strong, resilient financial model with attractive margins and cash generation • Disciplined capital allocation, balancing investment in the business and shareholder returns 8
Slide 9 — Q3 2026 Financials
9 Q3 2026 Financials and Q4 Outlook
Slide 10 — P&L Summary
10 SEGMENT ORGANIC NET SALES GROWTH • Connected Frontline +15 .0% • Asset Visibility & Automation +7.0% REGIONAL ORGANIC NET SALES GROWTH • North America +11 % • EMEA +13 % • Asia Pacific +8% • Latin America +9% In millions, except per share data 3Q 26 3Q 25 Change Net Sales Organic Net Sales Growth $1,614 $1,320 +22.3% +11.3% Adjusted Gross Profit Adjusted Gross Margin $742 46.0% $636 48.2% +16.7% (220) bps Adjusted Operating Expenses Adjusted Operating Expenses as a % of Sales $413 25.6% $368 27.9% +12.2% (230) bps Adjusted EBITDA Adjusted EBITDA Margin $349 21.6% $285 21.6% +22.5% Flat Non-GAAP Diluted EPS $4.95 $3.88 +27.6% (1) Refer to the appendix of this presentation for reconciliations of GAAP to non -GAAP financial measures P&L Summary (1)
Slide 11 — Cash Flow & Balance Sheet
(1) Refer to the appendix of this presentation for reconciliations of GAAP to non -GAAP financial measures 11 Cash Flow: YTD 3Q26 • $661M Free cash flow, $157M higher YoY • $643M of share repurchases Strong Balance Sheet: 3Q26 • $182M cash & cash equivalents • $2.6B balance sheet debt • 1.6x net debt to adjusted EBITDA • $1B revolving credit facility capacity $ 946 M share repurchases 4Q25 through 3Q26 supported by our strong balance sheet and cash flow Cash Flow & Balance Sheet (1)
Slide 12 — Successfully Managing Through Memory Component Supply Constraint
12 • Product memory cost increases approximately in -line with expectations • Aggregate impact to business has increased this year as we drive higher -than - expected sales volumes, particularly in mobile computers • Initiated additional price increase in early October for mitigation into 2027 • Suppliers delivering on commitments, supporting our strong sales growth • Alternative sourcing and transitioning to memory types with greater availability • Significantly increased memory on -hand to support growth into 2027 Successfully Managing Through Memory Component Supply Constraint Leveraging our proven track record of successfully navigating supply c hain challenges Expect ~ $145M increase in FY26 memory component costs from prior year
Slide 13 — Outlook & Assumptions
13 4Q 2026 • Sales growth between 10% and 14% o ~150 basis point favorable impact from FX • Adjusted EBITDA margin ~ 22% • Non -GAAP diluted EPS $5.00 - $5.40 FY 2026 • ~ 17% sales growth (based on Q4 outlook midpoint) o ~8 point favorable impact from acquisitions (1) and FX • Adjusted EBITDA margin ~ 23.5% (2) (based on Q4 outlook) • Non -GAAP diluted EPS ~ $21.20 (2) (based on Q4 outlook midpoint) • Free cash flow at least $1B • Capital expenditures $75M - $80M • Depreciation $80M - $85M; Amortization $145M - $150M • Stock -based compensation expense $180M - $190M • Non -GAAP tax rate ~ 19% (1) Net impact to sales growth for 12 months following business acquisitions/ dispositions (2) Includes $73 million IEEPA tariff recoveries (Q2 2026) Raised full -year outlook for sales growth and Non -GAAP EPS (diluted) Outlook & Assumptions
Slide 14 — 14
14 Strong broad -based growth in Q3, with continued momentum in our business supporting an increased full -year 2026 outlook 01 Customers are leveraging Zebra's AI -powered portfolio of solutions to improve productivity, visibility and decision -making on the frontline 02 03 Executing on our strategic priorities to drive long -term profitable growth, build on our industry leadership and track record of innovation, and enhance financial strength and flexibility Closing Remarks
Slide 15 — Q&A
15 Q&A
Slide 16 — Appendix
16 Appendix
Slide 17 — Use of Non
17 This presentation contains certain non-GAAP financial measures . The Company presents 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 . Management believes non -GAAP financial measures are useful to investors because such measures enable investors to perform meaningful comparisons of past and present operating results . Such non -GAAP financial measures may include : “adjusted EBITDA ;” “adjusted EBITDA margin ;” “adjusted gross margin ;” “adjusted gross profit ;” “adjusted net sales ;” “adjusted operating expenses,” “EBITDA ;” “free cash flow;” “free cash flow conversion ;” “net debt ;” “net debt to adjusted EBITDA ratio ;” “non-GAAP diluted earnings per share ;” “non-GAAP earnings per share ;” “non-GAAP net income ;” “organic net sales ;” “organic net sales growth ;” “segment organic net sales growth (decline) ;” and “regional organic net sales growth (decline) .” Please see the reconciliation of GAAP to non -GAAP financial measures tables and accompanying disclosures at the end of this presentation for more detailed information regarding non -GAAP financial measures herein, including the items reflected in adjusted net earnings calculations . 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 various items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted, and that would impact net income, 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 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 . Non -GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the Company’s performance measures calculated in accordance with GAAP . Use of Non-GAAP Financial Information
Slide 18 — GAAP to Non
18 (Unaudited) GAAP to Non-GAAP Organic Net Sales Growth Reconciliation
Slide 19 — GAAP to Non
(Unaudited) 19 GAAP to Non-GAAP Regional Organic Net Sales Growth Reconciliation
Slide 20 — GAAP to Non
20 ($ in millions) (Unaudited) GAAP to Non-GAAP Gross Margin and Operating Income Reconciliation
Slide 21 — GAAP to Non
21 ($ in millions, except share data; Unaudited ) GAAP to Non-GAAP Net Income Reconciliation
Slide 22 — GAAP to Non
22 ($ in millions) (Unaudited ) GAAP to Non-GAAP EBITDA Reconciliation
Slide 23 — GAAP to Non
($ in millions) (Unaudited ) 23 GAAP to Non-GAAP Free Cash Flow Reconciliation
Slide 24 — GAAP to Non
($ in millions) (Unaudited ) 24 GAAP to Non-GAAP Net Debt to Adjusted EBITDA Reconciliation
Slide 25 — About Zebra
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. www.zebra.com investors.zebra.com About Zebra