Zebra’s second quarter results were driven by broad-based demand across its retail, manufacturing, and healthcare markets, as well as improved memory supply that allowed the company to meet more customer orders. According to CEO Bill Burns, “Customers are investing to digitize and automate frontline operations and our integrated portfolio is central to their progress.” The company also benefited from strong contributions from the recently acquired Elo Touch business and the realization of tariff recoveries, supporting both top-line growth and margin expansion.
Is now the time to buy ZBRA? Find out in our full research report (it’s free for active Edge members).
Zebra (ZBRA) Q2 CY2026 Highlights:
- Revenue: $1.56 billion vs analyst estimates of $1.50 billion (20.4% year-on-year growth, 3.9% beat)
- Adjusted EPS: $6.35 vs analyst estimates of $4.38 (45.1% beat)
- Adjusted EBITDA: $431 million vs analyst estimates of $320.8 million (27.7% margin, 34.4% beat)
- Revenue Guidance for Q3 CY2026 is $1.56 billion at the midpoint, above analyst estimates of $1.50 billion
- Management raised its full-year Adjusted EPS guidance to $21 at the midpoint, a 13.5% increase
- Operating Margin: 20.6%, up from 14.2% in the same quarter last year
- Organic Revenue rose 9.2% year on year (beat)
- Market Capitalization: $17.89 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Zebra’s Q2 Earnings Call
- Keith Housum (Northcoast Research) asked about the outlook for large Transportation & Logistics deployments in 2027. CEO Bill Burns said Zebra has a robust multi-year pipeline, especially in last-mile delivery, with new mobile devices featuring RFID and AI providing competitive advantages.
- Thomas Moll (Stephens) inquired about memory supply constraints impacting guidance. Burns and CFO Nathan Winters explained that demand exceeds supply, but continued supplier diversification and proactive sourcing give confidence in meeting future needs.
- Quinn Fredrickson (Baird) sought more detail on memory cost visibility and how supply contracts impact future pricing. Winters responded that supplier transparency and three-month pricing cycles support planning, with ongoing actions to offset volatility through price increases and productivity.
- Meta Marshall (Morgan Stanley) asked about the integration and revenue synergies from the Elo Touch acquisition, and healthcare traction. Burns stated that joint selling, expanded geographies, and new healthcare use cases are driving early wins and pipeline growth.
- Guy Drummond Hardwick (Barclays) questioned the pace and sustainability of pricing actions to offset memory cost headwinds. Winters highlighted proactive deal quoting and broad-based price realization, particularly in mobile computing, as key factors supporting profitability.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will be monitoring (1) Zebra’s ability to secure and diversify memory supply to meet growing customer demand, (2) the continued expansion and integration of AI-powered and RFID-enabled devices across new customer segments, and (3) execution on cross-selling opportunities resulting from the Elo Touch acquisition. Ongoing progress in machine vision and healthcare will also serve as important indicators of sustained momentum.
Zebra currently trades at $377.76, up from $291.64 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
