Zebra Technologies Stock Surges 14% on Strong Q1 Earnings Beat

TLDR

• Zebra Technologies reported Q1 EPS of $4.75, an 18.2% year-over-year increase, surpassing the analyst estimate of $4.26 by $0.49.
• Revenue reached $1.5 billion, up 14.3% year over year, exceeding the consensus estimate of $1.48 billion.
• Adjusted EBITDA stood at $347 million, beating expectations by 9% and representing a 23.2% margin.
• The company raised its full-year 2026 EPS guidance to $18.50 at the midpoint, up from the previous $18.10.
• ZBRA stock surged approximately 14% in premarket trading to around $247.80 following the earnings release.

(SeaPRwire) –   Zebra Technologies delivered a robust first-quarter performance, driving ZBRA stock up roughly 14% in premarket trading to about $247.80—a significant jump from its prior closing price of $216.96.

$ZBRA – Zebra Technologies Q1’26 EARNINGS HIGHLIGHTS

Revenue: $1.495B (Est. $1.48B) ; +14.3% YoY
Adj. EPS: $4.75 (Est. $4.26) ; +18.2% YoY
Organic Net Sales Growth: +4.3% YoY
Adj. EBITDA: $347M; +18.8% YoY
Buybacks: $300M

FY Guide:
Adj. EPS: $18.30-$18.70…

— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) May 12, 2026

The company posted first-quarter earnings per share of $4.75, rising 18.2% from $4.02 in the same period last year. This outperformed the Wall Street consensus range of $4.25 to $4.26 by $0.49.

Quarterly revenue totaled $1.5 billion, reflecting a 14.3% year-over-year increase. Analysts had projected $1.48 billion.

Zebra Technologies Corporation, ZBRA

Adjusted EBITDA amounted to $347 million, exceeding the estimated $318.4 million by 9%, with a margin of 23.2%.

The Q1 EPS also surpassed Zebra’s own guidance range of $4.05 to $4.35 per share, landing near the upper end of its forecast.

Guidance Raised Across the Board

Zebra increased its full-year 2026 EPS guidance to approximately $18.50 at the midpoint—up from the earlier $18.10 and above the analyst consensus of $17.82 to $17.96.

Full-year 2026 revenue guidance was revised upward to $6.1 billion, compared to the prior outlook of $6 billion. Wall Street had anticipated $6 billion.

For the second quarter of 2026, Zebra provided EPS guidance of $4.20 to $4.50, with the midpoint closely aligned with analyst estimates of $4.14 to $4.20.

CEO Bill Burns highlighted momentum across core end markets, stating, “Our strong first-quarter results underscore the sustained demand for our innovative technology, with organic growth across segments and regions, driven primarily by strength in our manufacturing sector.”

Burns also identified e-commerce, automation, and Physical AI as key growth drivers for the remainder of the year.

The Elo Touch acquisition, finalized earlier, contributed “solid profitable growth” during the quarter as the company begins realizing synergies.

A Stock Still Recovering From a Rough Stretch

Context is important: ZBRA had faced downward pressure ahead of earnings, with the stock down 11% year to date and roughly 28% lower over the past 12 months entering Tuesday.

At its peak in early 2022, ZBRA traded near $600. Since then, it has been gradually recovering.

Revenue trends also reflect a rebound. Zebra recorded $5.8 billion in sales in 2022, followed by declines in both 2023 and 2024, before climbing back to $5.4 billion in 2025. The 2026 full-year revenue guidance of $6.1 billion would exceed the 2022 high.

Two-year annualized EPS growth reached 37.9%, significantly outpacing the 13.2% revenue growth over the same period. This EPS strength was partly fueled by share buybacks, which reduced the diluted share count by 4.2% over two years.

Q1 operating margin held steady at 14.4% year over year. However, adjusted operating margin declined to 18.3%, down 2.8 percentage points from the prior-year quarter, as expenses grew faster than revenue.

Free cash flow margin decreased to 10.9% from 12.1% in the first quarter of the previous year.

In the 90 days leading up to the report, Zebra received 11 upward EPS revisions and 2 downward ones.