Zebra Technologies stock: Q3 sales jump as outlook rises

Zebra Technologies reported strong third-quarter growth on November 3, 2026, and raised its full-year outlook. The company said in a Financial Times company announcement that sales for the quarter ended October 3 reached 1.614 billion US dollars, up 22.3 percent from a year earlier.

Sales momentum broadens across operations

Organic sales increased 11.3 percent. Connected Frontline sales rose 15.0 percent organically, while Asset Visibility and Automation sales advanced 7.0 percent. The figures reflect demand for automation and productivity solutions, with the Elo Touch business also contributing to growth.

Reported net income rose to 164 million US dollars from 101 million US dollars a year earlier. Non-GAAP diluted earnings per share increased to 4.95 US dollars from 3.88 US dollars, while adjusted EBITDA climbed to 349 million US dollars. The adjusted EBITDA margin held at 21.6 percent.

Memory costs pressure profitability

The strong sales performance came with pressure on gross profitability. Reported gross margin declined to 45.7 percent from 48.0 percent, while adjusted gross margin fell to 46.0 percent from 48.2 percent. Zebra attributed the decline primarily to higher memory component costs and business mix, partly offset by favorable foreign exchange.

For the fourth quarter, management expects sales growth of 10 to 14 percent year over year, including an estimated 150-basis-point benefit from foreign exchange. Adjusted EBITDA margin is expected to be about 22 percent, and non-GAAP diluted earnings per share is forecast at 5.00 to 5.40 US dollars. Full-year free cash flow is expected to reach at least 1 billion US dollars.

Weekend quote remains unchanged

Zebra Technologies stock traded at 289.00 euros on Lang & Schwarz at 13:04 CET on Saturday, November 7. Investors can follow the real-time quote of Zebra Technologies stock.

US equities are also covered in the current market reports.

More news and analyses on Zebra Technologies stock