Earnings beat, raised guidance put Zebra Technologies (ZBRA) in focus

Zebra Technologies (ZBRA) just posted first quarter revenue of US$1,495 million with net income of US$135 million, alongside higher full year and second quarter 2026 sales guidance that points to management confidence.

The raised guidance comes after a tough stretch for investors, with the share price down 15.44% over 90 days and the 1 year total shareholder return declining 27.71%. This suggests sentiment has been weak even as expectations for 2026 improve.

If this kind of earnings driven story has your attention, it could be useful to see which other automation and hardware players are attracting interest through the robotics and automation stocks screener. You can start with 31 robotics and automation stocks.

With the stock down sharply over the past year, yet trading at a discount to analyst price targets and some intrinsic value estimates, you have to ask: Is Zebra undervalued, or is the market already pricing in that higher 2026 growth?

Most Popular Narrative: 33.3% Undervalued

Analysts’ most followed narrative places Zebra Technologies’ fair value at $325.31 versus the last close of $216.96, which frames the recent guidance upgrade against a sizable implied upside gap.

The accelerating shift toward automation, digital transformation, and real-time workflow optimization, driven by ongoing labor shortages, e-commerce expansion, and increased supply chain demands, continues to fuel robust demand for Zebra's portfolio (hardware, software, RFID, machine vision), supporting sustained revenue growth and long-term earnings visibility.

Want to understand why this narrative expects higher margins, faster earnings growth than the wider market, and a richer profit multiple than today? The key assumptions sit inside the revenue mix, recurring software contribution, and what happens to returns on equity by the end of the decade. Curious which combination of these levers supports a fair value so far above the current share price.

Result: Fair Value of $325.31 (UNDERVALUED)

However, you still need to watch for weaker hardware driven growth or slower progress in software and services, as either could challenge the margin recovery story.

Next Steps

With sentiment clearly split between optimism and concern, this is a moment to move quickly, review the data for yourself, and weigh up the 4 key rewards and 1 important warning sign

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.