Overview

• Workflow automation provider's Q1 sales rose 14%, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations, rising 18% yr/yr

• Company repurchased $300 mln of shares in Q1

Outlook

• Zebra expects Q2 sales growth of 14%-17% year-over-year, including 10.5 points from acquisitions and FX

• Company sees Q2 adjusted EBITDA margin slightly above 21% and non-GAAP EPS of $4.20-$4.50

• Zebra forecasts 2026 sales growth of 10%-14%, adjusted EBITDA margin of about 22%, non-GAAP EPS $18.30-$18.70

Result Drivers

• SEGMENT AND REGIONAL GROWTH - Co said Q1 growth was broad-based across segments and regions, led by manufacturing end market

• GROSS MARGIN IMPROVEMENT - Gross margin rose due to favorable foreign currency exchange, business mix, and productivity initiatives

• ACQUISITION CONTRIBUTION - Elo Touch acquisition contributed to profitable growth and synergies in Q1

Company press release: ID:nBw5rkKmva

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$1.5 bln	$1.48 bln (13 Analysts)
Q1 Adjusted EPS	Beat	$4.75	$4.25 (14 Analysts)
Q1 EPS		$2.72

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Zebra Technologies Corp is $331.00, about 52.6% above its May 11 closing price of $216.96

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

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