Zebra Technologies : 1Q 2026 Zebra Technologies Presentation

Published: 2026-05-12 09:34:26 ET ZBRA

Published on 05/12/2026 at 09:34 am EDT

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First0uarter Earnings Results

What you'll hear from us today

Strong Q1 2026 performance and momentum underpin increased outlook for the year

Zebra's integrated portfolio of solutions is a powerful differentiator, enabling customers to automate frontline workflows and improve visibility, execution and productivity

Executing a clear strategy to drive profitable growth, build on our industry leadership and track record of innovation, and enhance financial strength and flexibility

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012026 Highlights(**

Q1 Results Q1 Highlights

31,495M

23.2%

50.4%

Sales

Adjusted EBITDA Margin

Adjusted Gross Margin

28.4%

34.75

33O0M

Adjusted Operating Expense % of Sales

Non-GAAP

Diluted EPS

Share Repurchase

14.3% sales growth (4.3% organic)

Growth across all regions, outperformance in Latin America and Asia Pacific

Manufacturing end market outperformance

90 bps adj. EBITDA margin expansion driven by multi-year high gross margin and adj. operating expense leverage

18.2% Non-GAAP Diluted EPS growth

Outlook

Initiating Q2 guidance reflecting a strong start to the quarter and demand momentum

Increasing full-year sales and EPS guide reflecting our strong results, continued momentum, and increased confidence in the balance of the year

4 Refer to the appendix of this presentation for reconciliations of GAAP to non-GAAP financial measures *'yi« ZEBRA

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Global megatrendsmakeZebra’ssolutionsincreasinglyessential

Frontline environments are becoming more complex, increasing demand for technologies that improve visibility, automation and productivity

ARTIFICIAL INTELLIGENCE

AI Software Spend

DIOITIZATIONO IOT ANALYTICS

AUTOMATION

OPPORTUNITY

Warehouse Footprint

O CLOUD

ON-DEMAND

ECONOMY

Ecommerce Revenue

*8^ *2O^

IoT Spend Public Cloud Spend

Flywheel. Gartner, Transport Intelligence. Interact

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Zebra’send-to-end presenceacrossthesupplychainisacoredifferentiator

Printing Machine Vision

RFID & Location Solutions

Advanced Data Capture

Supplies & Sensors

Workcloud Software

Self-Service & Point-of-Sale

AI Agents & Toolkits

Enterprise Mobile Computers

Rugged Tablets AI Agents & Toolkits

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g1Financials

and dutlook

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In millions, except per share data

1Q26

1Q25

Change

Net Sales

Organic Net Sales Growth

$1,495

$1,308

+14.3%

+4.3%

Adjusted Gross Profit

Adjusted Gross Margin

$753

50.4%

$649

49.6%

+16.0%

+80bps

Adjusted Operating Expenses

$425

$374

+13.6%

Adjusted EBITDA

$347

$292

+18.8%

Adjusted EBITDA Margin

23.2%

22.3%

+90bps

Non-GAAP Diluted EPS

$4.75

$4.02

+18.2%

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Cash Flow&Balance Sheet(*!

Cash Flow: 1026

Free cash flow of $163M, $5M higher YoY

S300M of share repurchases

Strong Liquidity Position: 1026

!j114M cash & cash equivalents

!*>2.7B balance sheet debt

2.1x net debt to adjusted EBITDA

!j1.1B revolving credit facility capacity

Leveraging Our Proven Track RecordofSuccessfullyNavigatingSupply

ChainChallenges

Executing on plans to manage through memory component supply constraints and cost inflation:

Global price increases on mobile computers effective late March

Suppliers delivering on commitments, with capacity planning ongoing

Transitioning to memory types with greater availability

Leveraging alternative supply options

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Outlook & Assumptions

2Q26

Sales growth between 14% and 17%

-10.5 point favorable impact from acquisitions!‘) and FX

Adjusted EBITDA margin slightly higher than 21%

Non-GAAP diluted EPS S4.20 - S4.50

FY26

Sales growth between 10% and 14%

-7 point favorable impact from acquisitions!‘) and FX

Adjusted EBITDA margin - 22%

Non-GAAP diluted EPS S18.30 - Sz8.70

Free cash flow at least S900M

Capital expenditures $80M - $90M

Depreciation $75M - $85M and Amortization $145M -

$155M

Stock-based compensation expense $160M - $180M

Non-GAAP tax rate - 19%

Expect to drive profitable growth through solid demand and productivity initiatives

15 (1) Net Impact to sales growth for 12 months following business acquisitions or dispositions *'yi« ZEBRA

Closing Remarks

Strong Q1 2026 performance and momentum underpin increased outlook for the year

Zebra's integrated portfolio of solutions is a powerful differentiator, enabling customers to automate frontline workflows and improve visibility, execution and productivity

Executing a clear strategy to drive profitable growth, build on our industry leadership and track record of innovation, and enhance financial strength and flexibility

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This presentation contains certain non-GAAP financial measures. The Company presents non-GAAP financial measures, which exclude certain significant items, as a means to understand the performance of its ongoing operations and how management views the business. Management believes non-GAAP financial measures are useful to investors because such measures enable investors to perform meaningful comparisons of past and present operating results. Such non-GAAP financial measures may include: “adjusted EBITDA;" “adjusted EBITDA margin;" “adjusted gross margin;" “adjusted gross profit;" “adjusted net sales;" “adjusted operating expenses," “EBITDA;" “free cash flow;" “free cash flow conversion;" “net debt;" “net debt to adjusted EBITDA ratio;" “non-GAAP diluted earnings per share;" “non-GAAP earnings per share;" “non-GAAP net income;" “organic net sales;" “organic net sales growth;" “segment organic net sales growth (decline);" and “regional organic net sales growth (decline)." Please see the reconciliation of GAAP to non-GAAP financial measures tables and accompanying disclosures at the end of this presentation for more detailed information regarding non-GAAP financial measures herein, including the items reflected in adjusted net earnings calculations.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted, and that would impact net income, the most directly comparable forward-looking GAAP financial measure. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

As a global company, Zebra's operating results reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which the Company transacts change in value over time compared to the U.S. dollar; accordingly, the Company presents certain organic growth financial information, which includes impacts of foreign currency translation, to provide a framework to assess how the Company's businesses performed excluding the impact of foreign currency exchange rate fluctuations. Foreign currency impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. dollar. This impact is calculated by translating the current period results at the currency exchange rates used in the comparable prior year period as well as removing realized cash flow hedge gains and losses from both the current and prior year periods.

Non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the Company's performance measures calculated in accordance with GAAP.

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GAAPtoNon-GAAPOrganicNetSalesGroMhReconciliation

(Unaudited)

Thru hlontbs E•d«d April 4, 202G

Consolidated Reported GAAP Net sales growth Adjustments.

Impact of foreign cuwericy translations "' Impact ot“acquisitions "

cr A¥"A Corzsolidgted

J4.3 P«

(2. loo

Consolidated Orgarnc Net snles growth

( I ) Opemiin¿ rcsrtlia rtporteJ in U.S. Do1Iars are atTñcttd by toreign curnmcy excMng< retd tJuctuations. Foreign cummcy irznslaiion impari reprcscnis ihe dift?nmre in rcsrtlis ihat

art atiribrttablr io tlLlciuationa in the cunency txcMnb< mtea used io con en the results ter buaineseza where ihe frtnriional crtrrcixy is not th' Lf.S. Do1Iar. This impari is

*aJcuIated by tmnslating ihe current pcfiC*d FeSuJts al the Lurre1tcy txcMnb• rates used in the comparable pricr year period zs u'<1I aa rt noir ing rtalizeJ cash th hedge pins and losses tro‹n both ihe current anJ prior year perio‹ts.

(*} For purposes of*coinpuiinb Or nic Nci sales t.amounts atiributablc io business acquisiiions or dispositions are excluded for tnels'e niunihs following or precedintt tIn respective acijuisitiun or dispusiiim res{xx:tivel3.

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Disclaimer

Zebra Technologies Corporation published this content on May 12, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2026 at 13:33 UTC.