Why it matters: Zebra says higher memory component costs pulled its gross margin down from a year earlier, an early sign of how pricier memory chips are reaching makers of everyday business hardware.
Zebra Technologies, which makes barcode scanners, rugged mobile computers and label printers used in stores, factories, warehouses and hospitals, reported net sales of $1.614 billion for its third quarter, ended Oct 3, on Tuesday. That is up 22.3% from $1.320 billion a year earlier. The company calls it a record quarter.
Organic growth: Zebra puts its organic sales growth, a non-GAAP measure, at 11.3%, about half the reported rate, and says its acquisition of Elo Touch contributed to the quarter's double-digit growth. Sales in its Connected Frontline segment rose to $949 million from $705 million, while its Asset Visibility and Automation segment grew to $665 million from $615 million.
Memory costs: Gross margin slipped to 45.7% from 48.0%, which Zebra attributes mainly to higher memory component costs and business mix, partly offset by currency. The company says it worked to secure memory supply and raised prices.
Profit: Net income rose to $164 million, or $3.43 per diluted share, from $101 million, or $1.97, a year earlier. On a non-GAAP basis, earnings were $4.95 per share, compared with $3.88. Adjusted EBITDA was $349 million, a margin of 21.6%, unchanged from a year earlier. Zebra bought back $75 million of its shares in the quarter and $643 million over the first nine months.
The company's outlook: Zebra says it raised its full-year outlook. It expects fourth-quarter sales growth of 10% to 14% from a year earlier, including about 1.5 points from currency, an adjusted EBITDA margin of about 22%, and non-GAAP earnings of $5.00 to $5.40 per share. It expects full-year free cash flow of at least $1 billion. These are the company's own projections.
This story is for information only and is not investment advice.
Sources
- Zebra Technologies: third-quarter 2026 results release, Form 8-K Exhibit 99.1, SEC EDGAR, Nov 3, 2026
- Zebra Technologies: Form 8-K filing index (Item 2.02), SEC EDGAR, Nov 3, 2026
How we checked this: We read Zebra Technologies' third-quarter release as filed with the SEC (Form 8-K, Exhibit 99.1, accepted Nov 3, 2026 at 9:24 AM ET) in copies saved on Nov 3, 2026 at about 12:01 PM ET, and checked every figure and company statement against it, including its financial tables.
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