{"success":true,"data":{"pressRelease":{"id":"31014","rtpr_id":"nBw5rkKmva","ticker":"ZBRA","exchange":"NASDAQ","all_tickers":["ZBRA"],"title":"Zebra Technologies Announces First-Quarter 2026 Results","author":"Business Wire","published_at":"2026-05-12T10:30:00.347Z","article_body":"Zebra Technologies Announces First-Quarter 2026 Results\n\nDelivers strong first-quarter 2026 performance with broad-based growth across\nsegments and regions\n\nIncreases outlook for the full year 2026\n\nZebra Technologies Corporation\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.zebra.com%2Fus%2Fen.html&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=Zebra+Technologies+Corporation&index=1&md5=6b1c7e9dd04156bf1ed136f05c079c55)\n(NASDAQ: ZBRA), a global leader in digitizing and automating workflows to\ndeliver intelligent operations, today announced results for the first quarter\nended April 4, 2026.\n\nFirst-Quarter Financial Highlights\n\n\n * Net sales of $1,495 million; year-over-year increase of 14.3%\n\n * Net income of $135 million and net income per diluted share of $2.72\n\n * Non-GAAP diluted EPS increased year-over-year to $4.75\n\n * Adjusted EBITDA increased year-over-year to $347 million\n\n * Share repurchases of $300 million\n\n“Our strong first quarter results demonstrate the durability of demand for\nour innovative technology, with organic growth across our segments and\nregions, led by strength in our manufacturing end market. Elo Touch also\ncontributed solid profitable growth as we begin to drive synergies,\" said Bill\nBurns, Chief Executive Officer of Zebra Technologies. \"These results\nunderscore the value Zebra delivers as the foundation for intelligent\noperations across the frontline, helping customers operate more efficiently\nand effectively.\"\n\n\"We are building on our track record of value creation for shareholders with\n$300 million of share repurchases in each of the past two quarters, supported\nby our strong balance sheet and cash flow,\" said Nathan Winters, Chief\nFinancial Officer of Zebra Technologies. \"Our results reflect our focus on\nprofitable growth, operating discipline and margin expansion, and we remain\nconfident in our ability to support customer demand while delivering\nconsistent performance in a dynamic environment.\"\n $ in millions, except per share amounts   1Q26     1Q25   Change \n Select reported measures:       \n Net sales $ 1,495   $ 1,308   14.3 % \n Gross profit   742     645   15.0 % \n Gross margin   49.6 %   49.3 % 30 bps \n Net income   135     136   (0.7 %) \n Net income margin   9.0 %   10.4 % (140) bps \n Net income per diluted share $ 2.72   $ 2.62   3.8 % \n         \n Select Non-GAAP measures:       \n Adjusted net sales $ 1,495   $ 1,308   14.3 % \n Organic net sales growth     4.3 % \n Adjusted gross profit   753     649   16.0 % \n Adjusted gross margin   50.4 %   49.6 % 80 bps \n Adjusted EBITDA   347     292   18.8 % \n Adjusted EBITDA margin   23.2 %   22.3 % 90 bps \n Non-GAAP net income $ 235   $ 208   13.0 % \n Non-GAAP earnings per diluted share $ 4.75   $ 4.02   18.2 % \n\n\nNet sales were $1,495 million in the first quarter of 2026 compared to $1,308\nmillion in the prior year. Net sales in the Connected Frontline (\"CF\") segment\nwere $825 million in the first quarter of 2026 compared to $684 million in the\nprior year. Asset Visibility & Automation (\"AVA\") segment net sales were\n$670 million in the first quarter of 2026 compared to $624 million in the\nprior year. Consolidated organic net sales for the first quarter of 2026\nincreased 4.3% year-over-year, with a 3.8% increase in the CF segment and a\n4.8% increase in the AVA segment.\n\nFirst quarter 2026 gross profit was $742 million compared to $645 million in\nthe prior year. Gross margin increased to 49.6% for the first quarter of 2026\ncompared to 49.3% in the prior year primarily due to favorable foreign\ncurrency exchange and business mix, and productivity initiatives. Adjusted\ngross margin was 50.4% in the first quarter of 2026 compared to 49.6% in the\nprior year.\n\nOperating expenses increased to $527 million in the first quarter of 2026 from\n$450 million in the prior year primarily due to expenses associated with\nacquired businesses including amortization of intangible assets. Adjusted\noperating expenses increased to $425 million in the first quarter of 2026 from\n$374 million in the prior year.\n\nNet income for the first quarter of 2026 was $135 million, or $2.72 per\ndiluted share, compared to net income of $136 million, or $2.62 per diluted\nshare, in the prior year. Non-GAAP net income increased to $235 million for\nthe first quarter of 2026, or $4.75 per diluted share, compared to $208\nmillion, or $4.02 per diluted share, for the prior year.\n\nAdjusted EBITDA for the first quarter of 2026 increased to $347 million, or\n23.2% of adjusted net sales, compared to $292 million, or 22.3% of adjusted\nnet sales in the prior year due to higher gross margin and lower adjusted\noperating expense as a percentage of sales.\n\nBalance Sheet and Cash Flow\n\nAs of April 4, 2026, the Company had cash and cash equivalents of $114 million\nand total debt of $2,660 million.\n\nFor the first three months of 2026, net cash provided by operating activities\nwas $176 million and the Company invested $13 million in capital expenditures,\nresulting in free cash flow of $163 million. The Company also made share\nrepurchases of $300 million.\n\nOutlook\n\nMr. Burns added, \"We are seeing continued momentum into the second quarter,\nsupporting our increased outlook for the full year. Zebra's integrated\nportfolio of solutions is a key differentiator, enabling customers to connect\ndata, assets and workflows to drive visibility and productivity. As\ne-commerce, automation and Physical AI trends accelerate, we are well\npositioned to drive profitable growth, build on our market leadership and\ninnovation, and strengthen our financial position to deliver long-term\nshareholder value.\"\n\nSecond Quarter 2026\n\nThe Company expects second quarter sales growth between 14% and 17% compared\nto the prior year. This expectation includes approximately 10.5 points of\nfavorable net impact from business acquisitions and foreign currency.\n\nAdjusted EBITDA margin for the second quarter is expected to be slightly\nhigher than 21%. Non-GAAP diluted earnings per share are expected to be in the\nrange of $4.20 to $4.50. This assumes an adjusted effective tax rate of\napproximately 19%.\n\nFull Year 2026\n\nThe Company expects full year sales growth between 10% and 14% compared to the\nprior year. This expectation includes approximately 7 points of favorable net\nimpact from business acquisitions and foreign currency.\n\nAdjusted EBITDA margin for the full year is expected to be approximately 22%.\nNon-GAAP diluted earnings per share are expected to be in the range of $18.30\nto $18.70. This assumes an adjusted effective tax rate of approximately 19%.\n\nFree Cash Flow for the full year is expected to be greater than $900 million.\n\nThe Company does not provide a reconciliation for non-GAAP estimates on a\nforward-looking basis where it is unable to provide a meaningful or accurate\ncalculation or estimation of reconciling items and the information is not\navailable without unreasonable effort. This is due to the inherent difficulty\nof forecasting the timing or amount of the most directly comparable\nforward-looking GAAP financial measure as discussed under the \"Forward-Looking\nStatements\" caption below. This would include items that have not yet\noccurred, are out of the Company’s control and/or cannot be reasonably\npredicted, and that would impact diluted net earnings per share. For the same\nreasons, the Company is unable to address the probable significance of the\nunavailable information. Forward-looking non-GAAP financial measures provided\nwithout the most directly comparable GAAP financial measures may vary\nmaterially from the corresponding GAAP financial measures.\n\nConference Call Notification\n\nInvestors are invited to listen to a live webcast of Zebra’s conference call\nregarding the Company’s financial results. The conference call will be held\ntoday at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). To view the webcast,\nvisit the investor relations section of the Company’s website at\ninvestors.zebra.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.zebra.com%2Foverview%2Fdefault.aspx&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=investors.zebra.com&index=2&md5=33e10a142bfa4de5fd9691cbc4244f11)\n.\n\nWho is Zebra Technologies\n\nZebra (NASDAQ: ZBRA) provides the foundation for intelligent operations with\nan award-winning portfolio of connected frontline, asset visibility and\nautomation solutions which empower our customers to deploy AI on the\nfrontline. Organizations globally across retail, manufacturing,\ntransportation, logistics, healthcare, and other industries rely on us to\ndeliver outcomes today while driving innovation for what’s next. Together\nwith our partners, we create new ways of working that improve productivity and\nempower organizations to be better every day. Learn more at www.zebra.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.zebra.com%2Fus%2Fen.html&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=www.zebra.com&index=3&md5=5fdd15e54983399c26195999c41b3832)\n.\n\nFollow Zebra on our Blog\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.zebra.com%2Fus%2Fen%2Fblog.html&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=Blog&index=4&md5=180bfd8511d2d05bc2f479f974352c8a)\n, LinkedIn\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fzebra-technologies&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=LinkedIn&index=5&md5=c5213b00a139ac8b886092cc98929959)\n, Facebook\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.facebook.com%2FZebraTechnologiesGlobal%2F&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=Facebook&index=6&md5=3a5c5a3b73c6d61bf37b38edced85750)\n, X\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fx.com%2Fzebratechnology&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=X&index=7&md5=fb42b26891143c20712c68cde3608e5b)\n, Instagram\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.instagram.com%2Flifeatzebra&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=Instagram&index=8&md5=5eac21167bb462f3d3a1f5ed6211df80)\nand YouTube\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.youtube.com%2F%40ZebraTechnologiesGlobal&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=YouTube&index=9&md5=c53b980e5d3d5179d9d273ff0bc8c77e)\n.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements, as defined by the\nPrivate Securities Litigation Reform Act of 1995, including, without\nlimitation, the statements regarding the company’s outlook. Actual results\nmay differ from those expressed or implied in the company’s forward-looking\nstatements. These statements represent estimates only as of the date they were\nmade. Zebra undertakes no obligation, other than as may be required by law, to\npublicly update or revise any forward-looking statements, whether as a result\nof new information, future events, changed circumstances or any other reason\nafter the date of this release.\n\nThese forward-looking statements are based on current expectations, forecasts\nand assumptions and are subject to the risks and uncertainties inherent in\nZebra’s industry, market conditions, general domestic and international\neconomic conditions, and other factors. These factors include customer\nacceptance of Zebra’s offerings and competitors' offerings, and the\npotential effects of emerging technologies and changes in customer\nrequirements. The effect of global market conditions, and the availability of\ncredit and capital markets volatility may have adverse effects on Zebra, its\nsuppliers and its customers. In addition, natural disasters, man-made\ndisasters, public health issues (including pandemics), and cybersecurity\nincidents may have negative effects on Zebra's business and results of\noperations. Zebra's ability to purchase sufficient materials, parts, and\ncomponents, and ability to provide services, software and products to meet\ncustomer demand could negatively impact Zebra's results of operations and\ncustomer relationships. Profits and profitability will be affected by\nZebra’s ability to control manufacturing and operating costs. Because of its\ndebt, interest rates and financial market conditions may also have an adverse\nimpact on results. Foreign exchange rates, customs duties and trade policies\nmay have an adverse effect on financial results because of the global nature\nof Zebra's business. The impacts of changes in foreign and domestic\ngovernmental policies, regulations, or laws, as well as the outcome of\nlitigation or tax matters in which Zebra may be involved are other factors\nthat could adversely affect Zebra's business and results of operations. The\nsuccess of integrating acquisitions could also adversely affect profitability,\nreported results and the company’s competitive position in its industry.\nThese and other factors could have an adverse effect on Zebra’s sales, gross\nprofit margins and results of operations and increase the volatility of\nZebra's financial results. When used in this release and documents referenced,\nthe words “anticipate,” “believe,” “outlook,” and “expect” and\nsimilar expressions, as they relate to the Company or its management, are\nintended to identify such forward-looking statements, but are not the\nexclusive means of identifying these statements. Descriptions of certain\nrisks, uncertainties and other factors that could adversely affect the\nCompany’s future operations and results can be found in Zebra’s filings\nwith the Securities and Exchange Commission, including the Company’s most\nrecent Form 10-K and Form 10-Q.\n\nUse of Non-GAAP Financial Information\n\nThis press release contains certain Non-GAAP financial measures, consisting of\n“Adjusted EBITDA,” “Adjusted EBITDA margin,” “adjusted gross\nmargin,” “adjusted gross profit,” “adjusted net sales,” “adjusted\noperating expenses,” “adjusted operating income,” “EBITDA,” “free\ncash flow,” “non-GAAP diluted earnings per share,” “non-GAAP earnings\nper share,” “non-GAAP net income,” “organic net sales,” and\n“organic net sales growth.” Management presents these measures to focus on\nthe on-going operations and believes it is useful to investors because they\nenable them to perform meaningful comparisons of past and present operating\nresults. The company believes it is useful to present non-GAAP financial\nmeasures, which exclude certain significant items, as a means to understand\nthe performance of its ongoing operations and how management views the\nbusiness. Please see the “Reconciliation of GAAP to Non-GAAP Financial\nMeasures” tables and accompanying disclosures at the end of this press\nrelease for more detailed information regarding non-GAAP financial measures\nherein, including the items reflected in adjusted net earnings calculations.\nThese measures, however, should not be construed as an alternative to any\nother measure of performance determined in accordance with GAAP.\n\nThe company does not provide a reconciliation for non-GAAP estimates on a\nforward-looking basis (including the information under “Outlook” above)\nwhere it is unable to provide a meaningful or accurate calculation or\nestimation of reconciling items and the information is not available without\nunreasonable effort. This is due to the inherent difficulty of forecasting the\ntiming or amount of various items that have not yet occurred, are out of the\ncompany’s control and/or cannot be reasonably predicted, and that would\nimpact diluted net earnings per share, the most directly comparable\nforward-looking GAAP financial measure. For the same reasons, the company is\nunable to address the probable significance of the unavailable information.\nForward-looking non-GAAP financial measures provided without the most directly\ncomparable GAAP financial measures may vary materially from the corresponding\nGAAP financial measures.\n\nAs a global company, Zebra's operating results reported in U.S. dollars are\naffected by foreign currency exchange rate fluctuations because the underlying\nforeign currencies in which the company transacts change in value over time\ncompared to the U.S. dollar; accordingly, the company presents certain organic\ngrowth financial information, which includes impacts of foreign currency\ntranslation, to provide a framework to assess how the company’s businesses\nperformed excluding the impact of foreign currency exchange rate fluctuations.\nForeign currency impact represents the difference in results that are\nattributable to fluctuations in the currency exchange rates used to convert\nthe results for businesses where the functional currency is not the U.S.\ndollar. This impact is calculated by translating current period results at the\ncurrency exchange rates used in the comparable prior year period as well as\nremoving realized cash flow hedge gains and losses from both the current and\nprior year periods. The company believes these measures should be considered a\nsupplement to and not in lieu of the company’s performance measures\ncalculated in accordance with GAAP.\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n CONSOLIDATED BALANCE SHEETS \n (In millions, except per share data) \n   \n   April 4,   December 31, \n \n2026 \n2025 \n   (Unaudited)     \n Assets       \n Current assets:       \n Cash and cash equivalents $ 114     $ 125   \n Accounts receivable, net of allowances for doubtful accounts of $1 million   733       801   \n each as of April 4, 2026 and December 31, 2025 \n Inventories, net   692       729   \n Income tax receivable   30       31   \n Prepaid expenses and other current assets   126       110   \n Total Current assets   1,695       1,796   \n Property, plant and equipment, net   350       353   \n Right-of-use lease assets   170       166   \n Goodwill   4,709       4,727   \n Other intangibles, net   765       809   \n Deferred income taxes   410       414   \n Other long-term assets   233       237   \n Total Assets $ 8,332     $ 8,502   \n Liabilities and Stockholders’ Equity       \n Current liabilities:       \n Current portion of long-term debt $ 264     $ 141   \n Accounts payable   581       695   \n Accrued liabilities   459       558   \n Deferred revenue   434       446   \n Income taxes payable   25       12   \n Total Current liabilities   1,763       1,852   \n Long-term debt   2,387       2,361   \n Long-term lease liabilities   158       157   \n Deferred income taxes   32       32   \n Long-term deferred revenue   398       396   \n Other long-term liabilities   124       116   \n Total Liabilities   4,862       4,914   \n Stockholders’ Equity:       \n Preferred stock, $.01 par value; authorized 10,000,000 shares; none issued   —       —   \n Class A common stock, $.01 par value; authorized 150,000,000 shares; issued   1       1   \n 72,151,857 shares \n Additional paid-in capital   866       814   \n Treasury stock at cost, 23,768,847 and 22,558,911 shares as of April 4, 2026   (2,787 )     (2,488 ) \n and December 31, 2025, respectively \n Retained earnings   5,414       5,279   \n Accumulated other comprehensive loss   (24 )     (18 ) \n Total Stockholders’ Equity   3,470       3,588   \n Total Liabilities and Stockholders’ Equity $ 8,332     $ 8,502   \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n CONSOLIDATED STATEMENTS OF OPERATIONS \n (In millions, except share data) \n (Unaudited) \n   \n   Three Months Ended \n   April 4,   March 29, \n \n2026 \n2025 \n Net sales:       \n Tangible products $ 1,231     $ 1,062   \n Services and software   264       246   \n Total Net sales   1,495       1,308   \n Cost of sales:       \n Tangible products   623       542   \n Services and software   130       121   \n Total Cost of sales   753       663   \n Gross profit   742       645   \n Operating expenses:       \n Selling and marketing   189       161   \n Research and development   165       151   \n General and administrative   127       111   \n Amortization of intangible assets   37       24   \n Acquisition and integration costs   1       3   \n Exit and restructuring costs   8       —   \n Total Operating expenses   527       450   \n Operating income   215       195   \n Other (loss) income, net:       \n Foreign exchange loss   —       (5 ) \n Interest expense, net   (37 )     (23 ) \n Other expense, net   (11 )     (2 ) \n Total Other expense, net   (48 )     (30 ) \n Income before income tax   167       165   \n Income tax expense   32       29   \n Net income $ 135     $ 136   \n Basic earnings per share $ 2.74     $ 2.64   \n Diluted earnings per share $ 2.72     $ 2.62   \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n CONSOLIDATED STATEMENTS OF CASH FLOWS \n (In millions) \n (Unaudited) \n   \n   Three Months Ended \n   April 4,   March 29, \n \n2026 \n2025 \n Cash flows from operating activities:       \n Net income $ 135     $ 136   \n Adjustments to reconcile net income to net cash provided by operating       \n activities: \n Depreciation and amortization   56       41   \n Loss on sale of investments   15       —   \n Share-based compensation   58       51   \n Deferred income taxes   —       (23 ) \n Gain on sale of business   (5 )     —   \n Other, net   1       1   \n Changes in operating assets and liabilities:       \n Accounts receivable, net   67       84   \n Inventories, net   34       15   \n Other assets   (12 )     3   \n Accounts payable   (119 )     (76 ) \n Accrued liabilities   (67 )     (110 ) \n Deferred revenue   (11 )     16   \n Income taxes   24       42   \n Other operating activities   —       (2 ) \n Net cash provided by operating activities   176       178   \n Cash flows from investing activities:       \n Acquisition of business   —       (62 ) \n Proceeds from the sale of business   9       —   \n Purchases of property, plant and equipment   (13 )     (20 ) \n Proceeds from sale of long-term investments   1       —   \n Other investing activities   1       —   \n Net cash used in investing activities   (2 )     (82 ) \n Cash flows from financing activities:       \n Payments of debt   (37 )     —   \n Proceeds from issuance of debt   186       —   \n Payments for repurchases of common stock   (300 )     (125 ) \n Net payments related to share-based compensation plans   (5 )     (1 ) \n Change in unremitted cash collections from servicing factored receivables   (29 )     2   \n Other financing activities   —       5   \n Net cash used in financing activities   (185 )     (119 ) \n Effect of exchange rate changes on cash and cash equivalents   —       1   \n Net decrease in cash and cash equivalents   (11 )     (22 ) \n Cash and cash equivalents at beginning of period   125       901   \n Cash and cash equivalents at end of period $ 114     $ 879   \n Supplemental disclosures of cash flow information:       \n Income taxes paid $ 15     $ 9   \n Interest paid $ 26     $ 16   \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n RECONCILIATION OF ORGANIC NET SALES GROWTH \n (Unaudited) \n   \n   Three Months Ended \n   April 4, 2026 \n   CF   AVA   Consolidated \n Consolidated Reported GAAP Net sales growth 20.6 %   7.4 %   14.3 % \n Adjustments:           \n Impact of foreign currency translations ((1)) (2.1 )%   (2.2 )%   (2.1 )% \n Impact of acquisitions ((2)) (14.7 )%   (0.4 )%   (7.9 )% \n Consolidated Organic Net sales growth 3.8 %   4.8 %   4.3 % \n\n (1) Operating results reported in U.S. Dollars are affected by foreign currency \n exchange rate fluctuations. Foreign currency translation impact represents the \n difference in results that are attributable to fluctuations in the currency \n exchange rates used to convert the results for businesses where the functional \n currency is not the U.S. Dollar. This impact is calculated by translating the \n current period results at the currency exchange rates used in the comparable \n prior year period as well as removing realized cash flow hedge gains and \n losses from both the current and prior year periods. \n   \n (2) For purposes of computing Organic Net sales growth, amounts attributable to \n business acquisitions or dispositions are excluded for twelve months following \n or preceding the respective acquisition or disposition, respectively. \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN AND OPERATING INCOME \n ($ In millions) \n (Unaudited) \n   \n   Three Months Ended \n   April 4, 2026   March 29, 2025 \n   CF   AVA   Consolidated   CF   AVA   Consolidated \n GAAP                       \n Reported Net sales $ 825     $ 670     $ 1,495     $ 684     $ 624     $ 1,308   \n Reported Gross profit ((1))   405       348       742       333       316       645   \n Gross Margin   49.1 %     51.9 %     49.6 %     48.7 %     50.6 %     49.3 % \n Operating Income ((2))   169       159       215       140       135       195   \n                         \n Non-GAAP                       \n Adjusted Net sales $ 825     $ 670     $ 1,495     $ 684     $ 624     $ 1,308   \n Adjusted Gross profit ((1))   405       348       753       333       316       649   \n Adjusted Gross Margin   49.1 %     51.9 %     50.4 %     48.7 %     50.6 %     49.6 % \n Adjusted Operating Income ((2))   169       159       328       140       135       275   \n\n (1) Segment and Adjusted Gross profit excludes share-based compensation expense \n and business acquisition purchase accounting adjustments. \n (2) Segment and Non-GAAP Operating income excludes share-based compensation \n expense, business acquisition purchase accounting adjustments, amortization of \n intangible assets, acquisition and integration costs, exit and restructuring \n costs, as well as certain other non-recurring costs (impairment of goodwill \n and other intangible assets). \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n RECONCILIATION OF GAAP TO NON-GAAP NET INCOME \n ($ In millions, except share data) \n (Unaudited) \n   \n   Three Months Ended \n   April 4,   March 29, \n \n2026 \n2025 \n GAAP Net income $ 135     $ 136   \n Adjustments to Cost of sales((1))       \n Purchase accounting adjustments   5       —   \n Share-based compensation   6       4   \n Total adjustments to Cost of sales   11       4   \n Adjustments to Operating expenses((1))       \n Amortization of intangible assets   37       24   \n Acquisition and integration costs   1       3   \n Share-based compensation   56       49   \n Exit and restructuring costs   8       —   \n Total adjustments to Operating expenses   102       76   \n Adjustments to Other expense, net((1))       \n Amortization of debt issuance costs and discounts   1       1   \n Loss on sale of investments   15       —   \n Foreign exchange loss   —       5   \n Gain on sale of business   (5 )     \n Total adjustments to Other expense, net   11       6   \n Income tax effect of adjustments((2))       \n Reported income tax expense   32       29   \n Adjusted income tax   (56 )     (43 ) \n Total adjustments to income tax   (24 )     (14 ) \n Total adjustments   100       72   \n Non-GAAP Net income $ 235     $ 208   \n         \n GAAP earnings per share       \n Basic $ 2.74     $ 2.64   \n Diluted $ 2.72     $ 2.62   \n Non-GAAP earnings per share       \n Basic $ 4.79     $ 4.06   \n Diluted $ 4.75     $ 4.02   \n         \n Basic weighted average shares outstanding   49,017,288       51,365,011   \n Diluted weighted average and equivalent shares outstanding   49,428,337       51,806,550   \n\n (1) Presented on a pre-tax basis. \n (2) Represents adjustments to GAAP income tax expense commensurate with pre-tax \n non-GAAP adjustments (including the resulting impacts to U.S. BEAT/GILTI \n provisions), as well as adjustments to exclude the impacts of certain discrete \n income tax items and incorporate the anticipated annualized effects of current \n year tax planning. \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n GAAP to NON-GAAP RECONCILIATION TO EBITDA \n ($ In millions) \n (Unaudited) \n   \n   Three Months Ended \n   April 4,   March 29, \n \n2026 \n2025 \n GAAP Net income $ 135     $ 136   \n Add back:       \n Depreciation (excluding exit and restructuring)   19       17   \n Amortization of intangible assets   37       24   \n Total Other expense, net   48       30   \n Income tax expense   32       29   \n EBITDA (Non-GAAP)   271       236   \n         \n Adjustments to Cost of sales       \n Purchase accounting adjustments   5       —   \n Share-based compensation   6       4   \n Total adjustments to Cost of sales   11       4   \n Adjustments to Operating expenses       \n Acquisition and integration costs   1       3   \n Share-based compensation   56       49   \n Exit and restructuring costs   8       —   \n Total adjustments to Operating expenses   65       52   \n Total adjustments to EBITDA   76       56   \n Adjusted EBITDA (Non-GAAP) $ 347     $ 292   \n         \n Adjusted EBITDA margin (Non-GAAP)   23.2 %     22.3 % \n\n FREE CASH FLOW \n   \n   Three Months Ended \n   April 4,   March 29, \n \n2026 \n2025 \n Net cash provided by operating activities $ 176     $ 178   \n Less: Purchases of property, plant and equipment   (13 )     (20 ) \n Free cash flow (Non-GAAP)((1)) $ 163     $ 158   \n   \n (1) Free cash flow, a non-GAAP measure, is defined as Net cash provided by \n (used in) operating activities in a period minus purchases of property, plant \n and equipment (capital expenditures) made in that period. \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260512349117/en/\n(https://www.businesswire.com/news/home/20260512349117/en/)\n\nInvestors \n\nMichael Steele, CFA, IRC\n\nVice President, Investor Relations\n\nPhone: + 1 847 518 6432\n\nInvestorRelations@zebra.com (mailto:InvestorRelations@zebra.com)\n\nMedia \n\nTherese Van Ryne\n\nSenior Director, External Communications\n\nPhone: + 1 847 370 2317\n\ntherese.vanryne@zebra.com (mailto:therese.vanryne@zebra.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw5rkKmva","title":"Zebra Technologies Announces First-Quarter 2026 Results","author":"Business Wire","ticker":"ZBRA","created":"2026-05-12T10:30:00.347Z","tickers":["ZBRA"],"exchange":"NASDAQ","article_body":"Zebra Technologies Announces First-Quarter 2026 Results\n\nDelivers strong first-quarter 2026 performance with broad-based growth across\nsegments and regions\n\nIncreases outlook for the full year 2026\n\nZebra Technologies Corporation\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.zebra.com%2Fus%2Fen.html&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=Zebra+Technologies+Corporation&index=1&md5=6b1c7e9dd04156bf1ed136f05c079c55)\n(NASDAQ: ZBRA), a global leader in digitizing and automating workflows to\ndeliver intelligent operations, today announced results for the first quarter\nended April 4, 2026.\n\nFirst-Quarter Financial Highlights\n\n\n * Net sales of $1,495 million; year-over-year increase of 14.3%\n\n * Net income of $135 million and net income per diluted share of $2.72\n\n * Non-GAAP diluted EPS increased year-over-year to $4.75\n\n * Adjusted EBITDA increased year-over-year to $347 million\n\n * Share repurchases of $300 million\n\n“Our strong first quarter results demonstrate the durability of demand for\nour innovative technology, with organic growth across our segments and\nregions, led by strength in our manufacturing end market. Elo Touch also\ncontributed solid profitable growth as we begin to drive synergies,\" said Bill\nBurns, Chief Executive Officer of Zebra Technologies. \"These results\nunderscore the value Zebra delivers as the foundation for intelligent\noperations across the frontline, helping customers operate more efficiently\nand effectively.\"\n\n\"We are building on our track record of value creation for shareholders with\n$300 million of share repurchases in each of the past two quarters, supported\nby our strong balance sheet and cash flow,\" said Nathan Winters, Chief\nFinancial Officer of Zebra Technologies. \"Our results reflect our focus on\nprofitable growth, operating discipline and margin expansion, and we remain\nconfident in our ability to support customer demand while delivering\nconsistent performance in a dynamic environment.\"\n $ in millions, except per share amounts   1Q26     1Q25   Change \n Select reported measures:       \n Net sales $ 1,495   $ 1,308   14.3 % \n Gross profit   742     645   15.0 % \n Gross margin   49.6 %   49.3 % 30 bps \n Net income   135     136   (0.7 %) \n Net income margin   9.0 %   10.4 % (140) bps \n Net income per diluted share $ 2.72   $ 2.62   3.8 % \n         \n Select Non-GAAP measures:       \n Adjusted net sales $ 1,495   $ 1,308   14.3 % \n Organic net sales growth     4.3 % \n Adjusted gross profit   753     649   16.0 % \n Adjusted gross margin   50.4 %   49.6 % 80 bps \n Adjusted EBITDA   347     292   18.8 % \n Adjusted EBITDA margin   23.2 %   22.3 % 90 bps \n Non-GAAP net income $ 235   $ 208   13.0 % \n Non-GAAP earnings per diluted share $ 4.75   $ 4.02   18.2 % \n\n\nNet sales were $1,495 million in the first quarter of 2026 compared to $1,308\nmillion in the prior year. Net sales in the Connected Frontline (\"CF\") segment\nwere $825 million in the first quarter of 2026 compared to $684 million in the\nprior year. Asset Visibility & Automation (\"AVA\") segment net sales were\n$670 million in the first quarter of 2026 compared to $624 million in the\nprior year. Consolidated organic net sales for the first quarter of 2026\nincreased 4.3% year-over-year, with a 3.8% increase in the CF segment and a\n4.8% increase in the AVA segment.\n\nFirst quarter 2026 gross profit was $742 million compared to $645 million in\nthe prior year. Gross margin increased to 49.6% for the first quarter of 2026\ncompared to 49.3% in the prior year primarily due to favorable foreign\ncurrency exchange and business mix, and productivity initiatives. Adjusted\ngross margin was 50.4% in the first quarter of 2026 compared to 49.6% in the\nprior year.\n\nOperating expenses increased to $527 million in the first quarter of 2026 from\n$450 million in the prior year primarily due to expenses associated with\nacquired businesses including amortization of intangible assets. Adjusted\noperating expenses increased to $425 million in the first quarter of 2026 from\n$374 million in the prior year.\n\nNet income for the first quarter of 2026 was $135 million, or $2.72 per\ndiluted share, compared to net income of $136 million, or $2.62 per diluted\nshare, in the prior year. Non-GAAP net income increased to $235 million for\nthe first quarter of 2026, or $4.75 per diluted share, compared to $208\nmillion, or $4.02 per diluted share, for the prior year.\n\nAdjusted EBITDA for the first quarter of 2026 increased to $347 million, or\n23.2% of adjusted net sales, compared to $292 million, or 22.3% of adjusted\nnet sales in the prior year due to higher gross margin and lower adjusted\noperating expense as a percentage of sales.\n\nBalance Sheet and Cash Flow\n\nAs of April 4, 2026, the Company had cash and cash equivalents of $114 million\nand total debt of $2,660 million.\n\nFor the first three months of 2026, net cash provided by operating activities\nwas $176 million and the Company invested $13 million in capital expenditures,\nresulting in free cash flow of $163 million. The Company also made share\nrepurchases of $300 million.\n\nOutlook\n\nMr. Burns added, \"We are seeing continued momentum into the second quarter,\nsupporting our increased outlook for the full year. Zebra's integrated\nportfolio of solutions is a key differentiator, enabling customers to connect\ndata, assets and workflows to drive visibility and productivity. As\ne-commerce, automation and Physical AI trends accelerate, we are well\npositioned to drive profitable growth, build on our market leadership and\ninnovation, and strengthen our financial position to deliver long-term\nshareholder value.\"\n\nSecond Quarter 2026\n\nThe Company expects second quarter sales growth between 14% and 17% compared\nto the prior year. This expectation includes approximately 10.5 points of\nfavorable net impact from business acquisitions and foreign currency.\n\nAdjusted EBITDA margin for the second quarter is expected to be slightly\nhigher than 21%. Non-GAAP diluted earnings per share are expected to be in the\nrange of $4.20 to $4.50. This assumes an adjusted effective tax rate of\napproximately 19%.\n\nFull Year 2026\n\nThe Company expects full year sales growth between 10% and 14% compared to the\nprior year. This expectation includes approximately 7 points of favorable net\nimpact from business acquisitions and foreign currency.\n\nAdjusted EBITDA margin for the full year is expected to be approximately 22%.\nNon-GAAP diluted earnings per share are expected to be in the range of $18.30\nto $18.70. This assumes an adjusted effective tax rate of approximately 19%.\n\nFree Cash Flow for the full year is expected to be greater than $900 million.\n\nThe Company does not provide a reconciliation for non-GAAP estimates on a\nforward-looking basis where it is unable to provide a meaningful or accurate\ncalculation or estimation of reconciling items and the information is not\navailable without unreasonable effort. This is due to the inherent difficulty\nof forecasting the timing or amount of the most directly comparable\nforward-looking GAAP financial measure as discussed under the \"Forward-Looking\nStatements\" caption below. This would include items that have not yet\noccurred, are out of the Company’s control and/or cannot be reasonably\npredicted, and that would impact diluted net earnings per share. For the same\nreasons, the Company is unable to address the probable significance of the\nunavailable information. Forward-looking non-GAAP financial measures provided\nwithout the most directly comparable GAAP financial measures may vary\nmaterially from the corresponding GAAP financial measures.\n\nConference Call Notification\n\nInvestors are invited to listen to a live webcast of Zebra’s conference call\nregarding the Company’s financial results. The conference call will be held\ntoday at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). To view the webcast,\nvisit the investor relations section of the Company’s website at\ninvestors.zebra.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.zebra.com%2Foverview%2Fdefault.aspx&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=investors.zebra.com&index=2&md5=33e10a142bfa4de5fd9691cbc4244f11)\n.\n\nWho is Zebra Technologies\n\nZebra (NASDAQ: ZBRA) provides the foundation for intelligent operations with\nan award-winning portfolio of connected frontline, asset visibility and\nautomation solutions which empower our customers to deploy AI on the\nfrontline. Organizations globally across retail, manufacturing,\ntransportation, logistics, healthcare, and other industries rely on us to\ndeliver outcomes today while driving innovation for what’s next. Together\nwith our partners, we create new ways of working that improve productivity and\nempower organizations to be better every day. Learn more at www.zebra.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.zebra.com%2Fus%2Fen.html&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=www.zebra.com&index=3&md5=5fdd15e54983399c26195999c41b3832)\n.\n\nFollow Zebra on our Blog\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.zebra.com%2Fus%2Fen%2Fblog.html&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=Blog&index=4&md5=180bfd8511d2d05bc2f479f974352c8a)\n, LinkedIn\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fzebra-technologies&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=LinkedIn&index=5&md5=c5213b00a139ac8b886092cc98929959)\n, Facebook\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.facebook.com%2FZebraTechnologiesGlobal%2F&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=Facebook&index=6&md5=3a5c5a3b73c6d61bf37b38edced85750)\n, X\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fx.com%2Fzebratechnology&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=X&index=7&md5=fb42b26891143c20712c68cde3608e5b)\n, Instagram\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.instagram.com%2Flifeatzebra&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=Instagram&index=8&md5=5eac21167bb462f3d3a1f5ed6211df80)\nand YouTube\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.youtube.com%2F%40ZebraTechnologiesGlobal&esheet=54533661&newsitemid=20260512349117&lan=en-US&anchor=YouTube&index=9&md5=c53b980e5d3d5179d9d273ff0bc8c77e)\n.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements, as defined by the\nPrivate Securities Litigation Reform Act of 1995, including, without\nlimitation, the statements regarding the company’s outlook. Actual results\nmay differ from those expressed or implied in the company’s forward-looking\nstatements. These statements represent estimates only as of the date they were\nmade. Zebra undertakes no obligation, other than as may be required by law, to\npublicly update or revise any forward-looking statements, whether as a result\nof new information, future events, changed circumstances or any other reason\nafter the date of this release.\n\nThese forward-looking statements are based on current expectations, forecasts\nand assumptions and are subject to the risks and uncertainties inherent in\nZebra’s industry, market conditions, general domestic and international\neconomic conditions, and other factors. These factors include customer\nacceptance of Zebra’s offerings and competitors' offerings, and the\npotential effects of emerging technologies and changes in customer\nrequirements. The effect of global market conditions, and the availability of\ncredit and capital markets volatility may have adverse effects on Zebra, its\nsuppliers and its customers. In addition, natural disasters, man-made\ndisasters, public health issues (including pandemics), and cybersecurity\nincidents may have negative effects on Zebra's business and results of\noperations. Zebra's ability to purchase sufficient materials, parts, and\ncomponents, and ability to provide services, software and products to meet\ncustomer demand could negatively impact Zebra's results of operations and\ncustomer relationships. Profits and profitability will be affected by\nZebra’s ability to control manufacturing and operating costs. Because of its\ndebt, interest rates and financial market conditions may also have an adverse\nimpact on results. Foreign exchange rates, customs duties and trade policies\nmay have an adverse effect on financial results because of the global nature\nof Zebra's business. The impacts of changes in foreign and domestic\ngovernmental policies, regulations, or laws, as well as the outcome of\nlitigation or tax matters in which Zebra may be involved are other factors\nthat could adversely affect Zebra's business and results of operations. The\nsuccess of integrating acquisitions could also adversely affect profitability,\nreported results and the company’s competitive position in its industry.\nThese and other factors could have an adverse effect on Zebra’s sales, gross\nprofit margins and results of operations and increase the volatility of\nZebra's financial results. When used in this release and documents referenced,\nthe words “anticipate,” “believe,” “outlook,” and “expect” and\nsimilar expressions, as they relate to the Company or its management, are\nintended to identify such forward-looking statements, but are not the\nexclusive means of identifying these statements. Descriptions of certain\nrisks, uncertainties and other factors that could adversely affect the\nCompany’s future operations and results can be found in Zebra’s filings\nwith the Securities and Exchange Commission, including the Company’s most\nrecent Form 10-K and Form 10-Q.\n\nUse of Non-GAAP Financial Information\n\nThis press release contains certain Non-GAAP financial measures, consisting of\n“Adjusted EBITDA,” “Adjusted EBITDA margin,” “adjusted gross\nmargin,” “adjusted gross profit,” “adjusted net sales,” “adjusted\noperating expenses,” “adjusted operating income,” “EBITDA,” “free\ncash flow,” “non-GAAP diluted earnings per share,” “non-GAAP earnings\nper share,” “non-GAAP net income,” “organic net sales,” and\n“organic net sales growth.” Management presents these measures to focus on\nthe on-going operations and believes it is useful to investors because they\nenable them to perform meaningful comparisons of past and present operating\nresults. The company believes it is useful to present non-GAAP financial\nmeasures, which exclude certain significant items, as a means to understand\nthe performance of its ongoing operations and how management views the\nbusiness. Please see the “Reconciliation of GAAP to Non-GAAP Financial\nMeasures” tables and accompanying disclosures at the end of this press\nrelease for more detailed information regarding non-GAAP financial measures\nherein, including the items reflected in adjusted net earnings calculations.\nThese measures, however, should not be construed as an alternative to any\nother measure of performance determined in accordance with GAAP.\n\nThe company does not provide a reconciliation for non-GAAP estimates on a\nforward-looking basis (including the information under “Outlook” above)\nwhere it is unable to provide a meaningful or accurate calculation or\nestimation of reconciling items and the information is not available without\nunreasonable effort. This is due to the inherent difficulty of forecasting the\ntiming or amount of various items that have not yet occurred, are out of the\ncompany’s control and/or cannot be reasonably predicted, and that would\nimpact diluted net earnings per share, the most directly comparable\nforward-looking GAAP financial measure. For the same reasons, the company is\nunable to address the probable significance of the unavailable information.\nForward-looking non-GAAP financial measures provided without the most directly\ncomparable GAAP financial measures may vary materially from the corresponding\nGAAP financial measures.\n\nAs a global company, Zebra's operating results reported in U.S. dollars are\naffected by foreign currency exchange rate fluctuations because the underlying\nforeign currencies in which the company transacts change in value over time\ncompared to the U.S. dollar; accordingly, the company presents certain organic\ngrowth financial information, which includes impacts of foreign currency\ntranslation, to provide a framework to assess how the company’s businesses\nperformed excluding the impact of foreign currency exchange rate fluctuations.\nForeign currency impact represents the difference in results that are\nattributable to fluctuations in the currency exchange rates used to convert\nthe results for businesses where the functional currency is not the U.S.\ndollar. This impact is calculated by translating current period results at the\ncurrency exchange rates used in the comparable prior year period as well as\nremoving realized cash flow hedge gains and losses from both the current and\nprior year periods. The company believes these measures should be considered a\nsupplement to and not in lieu of the company’s performance measures\ncalculated in accordance with GAAP.\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n CONSOLIDATED BALANCE SHEETS \n (In millions, except per share data) \n   \n   April 4,   December 31, \n \n2026 \n2025 \n   (Unaudited)     \n Assets       \n Current assets:       \n Cash and cash equivalents $ 114     $ 125   \n Accounts receivable, net of allowances for doubtful accounts of $1 million   733       801   \n each as of April 4, 2026 and December 31, 2025 \n Inventories, net   692       729   \n Income tax receivable   30       31   \n Prepaid expenses and other current assets   126       110   \n Total Current assets   1,695       1,796   \n Property, plant and equipment, net   350       353   \n Right-of-use lease assets   170       166   \n Goodwill   4,709       4,727   \n Other intangibles, net   765       809   \n Deferred income taxes   410       414   \n Other long-term assets   233       237   \n Total Assets $ 8,332     $ 8,502   \n Liabilities and Stockholders’ Equity       \n Current liabilities:       \n Current portion of long-term debt $ 264     $ 141   \n Accounts payable   581       695   \n Accrued liabilities   459       558   \n Deferred revenue   434       446   \n Income taxes payable   25       12   \n Total Current liabilities   1,763       1,852   \n Long-term debt   2,387       2,361   \n Long-term lease liabilities   158       157   \n Deferred income taxes   32       32   \n Long-term deferred revenue   398       396   \n Other long-term liabilities   124       116   \n Total Liabilities   4,862       4,914   \n Stockholders’ Equity:       \n Preferred stock, $.01 par value; authorized 10,000,000 shares; none issued   —       —   \n Class A common stock, $.01 par value; authorized 150,000,000 shares; issued   1       1   \n 72,151,857 shares \n Additional paid-in capital   866       814   \n Treasury stock at cost, 23,768,847 and 22,558,911 shares as of April 4, 2026   (2,787 )     (2,488 ) \n and December 31, 2025, respectively \n Retained earnings   5,414       5,279   \n Accumulated other comprehensive loss   (24 )     (18 ) \n Total Stockholders’ Equity   3,470       3,588   \n Total Liabilities and Stockholders’ Equity $ 8,332     $ 8,502   \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n CONSOLIDATED STATEMENTS OF OPERATIONS \n (In millions, except share data) \n (Unaudited) \n   \n   Three Months Ended \n   April 4,   March 29, \n \n2026 \n2025 \n Net sales:       \n Tangible products $ 1,231     $ 1,062   \n Services and software   264       246   \n Total Net sales   1,495       1,308   \n Cost of sales:       \n Tangible products   623       542   \n Services and software   130       121   \n Total Cost of sales   753       663   \n Gross profit   742       645   \n Operating expenses:       \n Selling and marketing   189       161   \n Research and development   165       151   \n General and administrative   127       111   \n Amortization of intangible assets   37       24   \n Acquisition and integration costs   1       3   \n Exit and restructuring costs   8       —   \n Total Operating expenses   527       450   \n Operating income   215       195   \n Other (loss) income, net:       \n Foreign exchange loss   —       (5 ) \n Interest expense, net   (37 )     (23 ) \n Other expense, net   (11 )     (2 ) \n Total Other expense, net   (48 )     (30 ) \n Income before income tax   167       165   \n Income tax expense   32       29   \n Net income $ 135     $ 136   \n Basic earnings per share $ 2.74     $ 2.64   \n Diluted earnings per share $ 2.72     $ 2.62   \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n CONSOLIDATED STATEMENTS OF CASH FLOWS \n (In millions) \n (Unaudited) \n   \n   Three Months Ended \n   April 4,   March 29, \n \n2026 \n2025 \n Cash flows from operating activities:       \n Net income $ 135     $ 136   \n Adjustments to reconcile net income to net cash provided by operating       \n activities: \n Depreciation and amortization   56       41   \n Loss on sale of investments   15       —   \n Share-based compensation   58       51   \n Deferred income taxes   —       (23 ) \n Gain on sale of business   (5 )     —   \n Other, net   1       1   \n Changes in operating assets and liabilities:       \n Accounts receivable, net   67       84   \n Inventories, net   34       15   \n Other assets   (12 )     3   \n Accounts payable   (119 )     (76 ) \n Accrued liabilities   (67 )     (110 ) \n Deferred revenue   (11 )     16   \n Income taxes   24       42   \n Other operating activities   —       (2 ) \n Net cash provided by operating activities   176       178   \n Cash flows from investing activities:       \n Acquisition of business   —       (62 ) \n Proceeds from the sale of business   9       —   \n Purchases of property, plant and equipment   (13 )     (20 ) \n Proceeds from sale of long-term investments   1       —   \n Other investing activities   1       —   \n Net cash used in investing activities   (2 )     (82 ) \n Cash flows from financing activities:       \n Payments of debt   (37 )     —   \n Proceeds from issuance of debt   186       —   \n Payments for repurchases of common stock   (300 )     (125 ) \n Net payments related to share-based compensation plans   (5 )     (1 ) \n Change in unremitted cash collections from servicing factored receivables   (29 )     2   \n Other financing activities   —       5   \n Net cash used in financing activities   (185 )     (119 ) \n Effect of exchange rate changes on cash and cash equivalents   —       1   \n Net decrease in cash and cash equivalents   (11 )     (22 ) \n Cash and cash equivalents at beginning of period   125       901   \n Cash and cash equivalents at end of period $ 114     $ 879   \n Supplemental disclosures of cash flow information:       \n Income taxes paid $ 15     $ 9   \n Interest paid $ 26     $ 16   \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n RECONCILIATION OF ORGANIC NET SALES GROWTH \n (Unaudited) \n   \n   Three Months Ended \n   April 4, 2026 \n   CF   AVA   Consolidated \n Consolidated Reported GAAP Net sales growth 20.6 %   7.4 %   14.3 % \n Adjustments:           \n Impact of foreign currency translations ((1)) (2.1 )%   (2.2 )%   (2.1 )% \n Impact of acquisitions ((2)) (14.7 )%   (0.4 )%   (7.9 )% \n Consolidated Organic Net sales growth 3.8 %   4.8 %   4.3 % \n\n (1) Operating results reported in U.S. Dollars are affected by foreign currency \n exchange rate fluctuations. Foreign currency translation impact represents the \n difference in results that are attributable to fluctuations in the currency \n exchange rates used to convert the results for businesses where the functional \n currency is not the U.S. Dollar. This impact is calculated by translating the \n current period results at the currency exchange rates used in the comparable \n prior year period as well as removing realized cash flow hedge gains and \n losses from both the current and prior year periods. \n   \n (2) For purposes of computing Organic Net sales growth, amounts attributable to \n business acquisitions or dispositions are excluded for twelve months following \n or preceding the respective acquisition or disposition, respectively. \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN AND OPERATING INCOME \n ($ In millions) \n (Unaudited) \n   \n   Three Months Ended \n   April 4, 2026   March 29, 2025 \n   CF   AVA   Consolidated   CF   AVA   Consolidated \n GAAP                       \n Reported Net sales $ 825     $ 670     $ 1,495     $ 684     $ 624     $ 1,308   \n Reported Gross profit ((1))   405       348       742       333       316       645   \n Gross Margin   49.1 %     51.9 %     49.6 %     48.7 %     50.6 %     49.3 % \n Operating Income ((2))   169       159       215       140       135       195   \n                         \n Non-GAAP                       \n Adjusted Net sales $ 825     $ 670     $ 1,495     $ 684     $ 624     $ 1,308   \n Adjusted Gross profit ((1))   405       348       753       333       316       649   \n Adjusted Gross Margin   49.1 %     51.9 %     50.4 %     48.7 %     50.6 %     49.6 % \n Adjusted Operating Income ((2))   169       159       328       140       135       275   \n\n (1) Segment and Adjusted Gross profit excludes share-based compensation expense \n and business acquisition purchase accounting adjustments. \n (2) Segment and Non-GAAP Operating income excludes share-based compensation \n expense, business acquisition purchase accounting adjustments, amortization of \n intangible assets, acquisition and integration costs, exit and restructuring \n costs, as well as certain other non-recurring costs (impairment of goodwill \n and other intangible assets). \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n RECONCILIATION OF GAAP TO NON-GAAP NET INCOME \n ($ In millions, except share data) \n (Unaudited) \n   \n   Three Months Ended \n   April 4,   March 29, \n \n2026 \n2025 \n GAAP Net income $ 135     $ 136   \n Adjustments to Cost of sales((1))       \n Purchase accounting adjustments   5       —   \n Share-based compensation   6       4   \n Total adjustments to Cost of sales   11       4   \n Adjustments to Operating expenses((1))       \n Amortization of intangible assets   37       24   \n Acquisition and integration costs   1       3   \n Share-based compensation   56       49   \n Exit and restructuring costs   8       —   \n Total adjustments to Operating expenses   102       76   \n Adjustments to Other expense, net((1))       \n Amortization of debt issuance costs and discounts   1       1   \n Loss on sale of investments   15       —   \n Foreign exchange loss   —       5   \n Gain on sale of business   (5 )     \n Total adjustments to Other expense, net   11       6   \n Income tax effect of adjustments((2))       \n Reported income tax expense   32       29   \n Adjusted income tax   (56 )     (43 ) \n Total adjustments to income tax   (24 )     (14 ) \n Total adjustments   100       72   \n Non-GAAP Net income $ 235     $ 208   \n         \n GAAP earnings per share       \n Basic $ 2.74     $ 2.64   \n Diluted $ 2.72     $ 2.62   \n Non-GAAP earnings per share       \n Basic $ 4.79     $ 4.06   \n Diluted $ 4.75     $ 4.02   \n         \n Basic weighted average shares outstanding   49,017,288       51,365,011   \n Diluted weighted average and equivalent shares outstanding   49,428,337       51,806,550   \n\n (1) Presented on a pre-tax basis. \n (2) Represents adjustments to GAAP income tax expense commensurate with pre-tax \n non-GAAP adjustments (including the resulting impacts to U.S. BEAT/GILTI \n provisions), as well as adjustments to exclude the impacts of certain discrete \n income tax items and incorporate the anticipated annualized effects of current \n year tax planning. \n\n ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES \n GAAP to NON-GAAP RECONCILIATION TO EBITDA \n ($ In millions) \n (Unaudited) \n   \n   Three Months Ended \n   April 4,   March 29, \n \n2026 \n2025 \n GAAP Net income $ 135     $ 136   \n Add back:       \n Depreciation (excluding exit and restructuring)   19       17   \n Amortization of intangible assets   37       24   \n Total Other expense, net   48       30   \n Income tax expense   32       29   \n EBITDA (Non-GAAP)   271       236   \n         \n Adjustments to Cost of sales       \n Purchase accounting adjustments   5       —   \n Share-based compensation   6       4   \n Total adjustments to Cost of sales   11       4   \n Adjustments to Operating expenses       \n Acquisition and integration costs   1       3   \n Share-based compensation   56       49   \n Exit and restructuring costs   8       —   \n Total adjustments to Operating expenses   65       52   \n Total adjustments to EBITDA   76       56   \n Adjusted EBITDA (Non-GAAP) $ 347     $ 292   \n         \n Adjusted EBITDA margin (Non-GAAP)   23.2 %     22.3 % \n\n FREE CASH FLOW \n   \n   Three Months Ended \n   April 4,   March 29, \n \n2026 \n2025 \n Net cash provided by operating activities $ 176     $ 178   \n Less: Purchases of property, plant and equipment   (13 )     (20 ) \n Free cash flow (Non-GAAP)((1)) $ 163     $ 158   \n   \n (1) Free cash flow, a non-GAAP measure, is defined as Net cash provided by \n (used in) operating activities in a period minus purchases of property, plant \n and equipment (capital expenditures) made in that period. \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260512349117/en/\n(https://www.businesswire.com/news/home/20260512349117/en/)\n\nInvestors \n\nMichael Steele, CFA, IRC\n\nVice President, Investor Relations\n\nPhone: + 1 847 518 6432\n\nInvestorRelations@zebra.com (mailto:InvestorRelations@zebra.com)\n\nMedia \n\nTherese Van Ryne\n\nSenior Director, External Communications\n\nPhone: + 1 847 370 2317\n\ntherese.vanryne@zebra.com (mailto:therese.vanryne@zebra.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-12T10:30:00.597588924Z","server_sent_at_ms":1778581800597},"received_at":"2026-05-12T10:30:00.813Z","source_url":"https://www.businesswire.com/news/home/20260512349117/en/"},"analysis":null,"durationMs":null,"modelName":null}}