Key points
- Zebra Technologies (ZBRA) traded near $345 late Tuesday morning, up about 18% from Monday's $291.64 close, after reporting second quarter results before the open.
- Net sales were $1.557 billion, up 20.4%. Non-GAAP earnings were $6.35 per share against a $4.36 consensus.
- The quarter included $73 million of IEEPA tariff recoveries booked into gross profit. Only $14 million of that was received during the quarter.
- Gross margin rose to 53.0% from 47.6%. The $73 million equals 4.7% of quarterly revenue.
- Zebra guided third quarter adjusted EBITDA margin to about 22%, below the 27.7% it just reported. Full year non-GAAP earnings guidance went to $20.75 to $21.25 from $18.30 to $18.70.
Zebra Technologies (ZBRA) traded at $344.80 at 10 a.m. Eastern on Tuesday, up 18.2% from Monday's close of $291.64. The stock opened at $330.10 and reached $360.58 earlier in the session, its highest price in a year. Its 52-week low was $199.05 on March 30, 2026.
The company reported second quarter results before the open. Net sales were $1.557 billion, up 20.4% from $1.290 billion a year earlier. Non-GAAP diluted earnings were $6.35 per share against a consensus of $4.36. GAAP diluted earnings were $4.85 per share, compared with $2.19 a year ago.
Bill Burns, chief executive officer of Zebra Technologies, said the quarter reflected "broad-based demand for our innovative solutions and excellent execution on our growth and profitability priorities."
| Metric | Q2 2026 | Q2 2025 |
|---|---|---|
| Net sales | $1,557M | $1,290M |
| Organic sales growth | 9.2% | n/a |
| Gross margin | 53.0% | 47.6% |
| Adjusted EBITDA | $431M | $267M |
| Adjusted EBITDA margin | 27.7% | 20.6% |
| Non-GAAP diluted EPS | $6.35 | $3.61 |
| GAAP diluted EPS | $4.85 | $2.19 |
What does Zebra Technologies do?
Zebra makes the hardware that tracks physical goods and the people handling them. Its products include mobile computers, barcode scanners, RFID readers and label printers, along with the software and services sold alongside them. The company was founded in 1969, is headquartered in Lincolnshire, Illinois, and employs 10,700 people.
It reports in two segments. Connected Frontline covers mobile computing and data capture and produced $903 million in the quarter, up 25.9%. Asset Visibility and Automation covers printing, supplies and location systems and produced $654 million, up 13.5%.
Zebra bought Elo Touch Solutions for $1.3 billion in cash, announcing the deal in August 2025 and closing it on October 1. Elo makes touchscreen displays for retail and restaurants and had about $400 million in annual sales. Organic growth in the second quarter was 9.2%, against the 20.4% headline, with the rest coming from acquisitions, dispositions and currency.
How much of the quarter came from tariff refunds?
Zebra recorded "IEEPA tariff recoveries of $73 million, of which $14 million received in the quarter." The recoveries were booked into gross profit.
IEEPA is the International Emergency Economic Powers Act. The Supreme Court ruled 6 to 3 on February 20, 2026 that the president lacks authority to impose tariffs under the statute. The Court of International Trade then ordered US Customs and Border Protection to refund the duties already collected, an amount Customs has put near $165 billion across more than 330,000 importers. Customs is still building the system that processes those claims. The Justice Department has appealed the refund order.
The $73 million equals 4.7% of the $1.557 billion Zebra sold in the quarter. Gross margin came in at 53.0% against 47.6% a year earlier, a gain of 5.4 percentage points. Adjusted EBITDA margin was 27.7% against 20.6%.
Zebra guided third quarter adjusted EBITDA margin to about 22%, and full year adjusted EBITDA margin to 23.5% to 24.0%. Both figures sit below the 27.7% the company just reported. Tariffs have moved results at other importers this year, including the footwear and apparel names whose rates we tracked in July, and EchoStar reported $24.12 per share last quarter on a gain that came almost entirely from one item.
What did Zebra guide for the rest of 2026?
Full year non-GAAP diluted earnings guidance went to $20.75 to $21.25 per share, from $18.30 to $18.70 in the prior outlook. Net sales growth guidance went to 14% to 16%, from 10% to 14%. Zebra said about 8 points of that growth comes from acquisitions, dispositions and currency. Free cash flow is guided above $1 billion.
Third quarter guidance calls for net sales growth of 17% to 20% and non-GAAP diluted earnings of $4.70 to $4.90 per share. About 10.5 points of the sales growth comes from acquisitions, dispositions and currency.
The company credited the raised outlook to strong demand and to "progress on productivity and memory supply." Memory prices have been rising through the year, and memory stocks lagged the AI rally on Monday even as contract prices climbed.
Zebra carries a market value near $18.4 billion and trades at about 36 times trailing earnings. Nathan Winters, chief financial officer of Zebra Technologies, said the balance sheet and cash flow "continue to provide significant financial flexibility, enabling us to invest for growth while returning more than $560 million to shareholders in the first half of the year through disciplined share repurchases."
Sources
- Zebra Technologies second quarter 2026 results release, including the tariff recovery language and the raised guidance
- Remarks from chief executive Bill Burns and chief financial officer Nathan Winters in the same release
- Supreme Court IEEPA ruling of February 20, 2026, and the Court of International Trade refund order, per Skadden and Norton Rose Fulbright
- Zebra completion of the Elo Touch Solutions acquisition, October 1, 2025
- Price, volume and valuation data as of Tuesday, August 4, 2026
