btlines

ZBRA US S&P 500Russell 1000 Earnings call · transcribed from the recording

Zebra Technologies (ZBRA) · Q3 2026 results and valuation

Share price: $327.44 · 2026-11-11

Results Q3 2026 vs Q2 2026 · previous quarter · published 3 Nov 2026 and 4 Aug 2026

Net income down 29.6% on the previous quarter, guidance raised. Management sounded very upbeat, in its script and in answers to analysts.

Only a basic analysis is available for this company at the moment.

1 · Numbers

−29.6%

Net income vs Q2 2026

Guidance raised

Net income 164.0M vs 233.0M

Revenue +3.7%

Against the same quarter last year (Q3 2025) it is +62.4%, so the move on last quarter looks seasonal or timing-related rather than a trend.

2 · How management spoke

Very upbeat

More upbeat than 94% of company calls

Answers to analysts: very upbeat, in line with the script.

Last call it was different: the answers were less upbeat than the script.

3 · What stood out

Key theme

Its connected frontline segment performed particularly well in the quarter, led by Zebra Technologies delivered sales and earnings results above its…

Valuation

Is Zebra Technologies undervalued?

Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At −2.3% growth a year (3-year revenue growth), the model's fair value is $86.01 a share — the stock trades 281% above it. Today's price assumes 16.1% growth a year.

Current price

$327.44

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+16.1% for 10 yrs

Fair value / share

$86.01

Buy below

$64.51

Price vs fair value

Overvalued >200%

Price vs buy-below price

Overvalued >200%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Key theme

    Zebra Technologies saw very strong customer demand leading to higher than anticipated sales volume.

    Source quote
    “We saw very strong customer demand leading to higher than anticipated sales volume. an adjusted EBITDA margin of 21.6% and non-GAAP diluted earnings per share of $4.95, a 28% increase over the prior year. Our ongoing efforts to proactively strengthen memory supply, implement pricing actions, and capture operating leverage enables us to support this increased growth while maintaining adjusted EBITDA margin year over year.”
  2. Guidance ↑

    Zebra Technologies' fourth quarter outlook translates to full year sales growth of approximately 17 percent, a two-point increase from its prior outlook.

  3. Guidance

    Really a modest impact here Zebra Technologies will expect in the fourth quarter just as those prices go throughout the market, but it expects that to drive about a point...

  4. Figure

    For the quarter, Zebra Technologies generated sales exceeding $1.6 billion, growing more than 22%, or 11% on an organic basis from the prior year.

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Very upbeat (was very upbeat)
Answers to analysts Very upbeat (was very upbeat)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone
“Transportation logistics was our highest growth end market in Q3, as customers invest in AI-enabled mobile computing solutions to improve productivity and service levels, and we have a robust multi-year...”
“We achieved record quarterly sales and increased earnings, driven by strong execution and broad-based growth across our portfolio.”
“In retail, we realized high single-digit growth with particularly strong sales in e-commerce and specialty stores, driven by customers' expectations for faster delivery and expanded fulfillment options.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-10-03)

Metric Q3 2026period end 2026-10-03 Q2 2026period end 2026-07-04 Change Q3 2025 YoY
Revenue 1.61B 1.56B +3.7% 1.32B +22.3%
Gross profit 738.0M 825.0M −10.5% 634.0M +16.4%
Operating income 237.0M 321.0M −26.2% 183.0M +29.5%
Net income 164.0M 233.0M −29.6% 101.0M +62.4%
EPS 3.43 4.85 −29.3% 1.97 +74.1%
P/E today 26.0 30.4 24.5 +5.9 30.2 +0.2

Topics

Most discussed now

  • Throughout this presentation, unless otherwise indicated, Zebra Technologies' references to sales performance are year-on-year on a…
  • This creates a clear competitive advantage for Zebra, supporting Zebra Technologies' ability to deliver sustainable, profitable growth.
  • North America sales increased 11%, with strength in all-in markets and outperformance in Canada.
  • Given Zebra Technologies' installed base as the market leader, refreshes represent attractive opportunity across each of its vertical…

Faded since Q2 2026

  • Fading Elo Touch contributed strong profitable growth with robust customer interest in its combined portfolio of solutions as Zebra Technologies…
  • Fading Zebra Technologies is executing on its clear strategy to create long-term shareholder value by driving sustainable growth, building on…
  • Fading Zebra Technologies delivered results exceeding its outlook driven by its team's execution and positive demand trends across its portfolio.
  • Fading Adjusted gross margin improved 540 basis points to 53.3% largely due to the $73 million IEEPA tariff recovery that was...

Latest announcements

Official filings, newest first.

Similar companies

Technology · Communication Equipment
All Technology companies →