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what it is
Zebra makes scanners, printers, mobile computers, and RFID gear that help warehouses and stores track stuff.
how it gets paid
Last year Zebra Tech made $5.4B in revenue.
why it's growing
Revenue grew 8.3% last year. The miss was tiny. Revenue was $3.9B, up 197% vs. prior year, and gross margin was 48.3%.
what just happened
Zebra missed by $0.01, and sales still came in at $3.9B.
At a glance
B+ balance sheet — decent shape, but not bulletproof
60/100 earnings predictability — reasonably predictable
16.3x trailing p/e — the market's not buying it — or you found a deal
12.5% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
Zebra makes scanners, printers, mobile computers, and RFID gear that help warehouses and stores track stuff.
Zebra sells gear that keeps warehouses talking to software. Its two reported lines are 67% and 33% of adjusted net sales, with adjusted net sales meaning sales after certain accounting tweaks. So what: one side pays the bills, and the other keeps your devices, labels, and scanners tied together.
How they make money
$5.4B
annual revenue · their business grew +8.3% last year
total revenue
$5.4B
+8.3%
The products that matter
handheld workflow devices
Mobile Computers
inside a $5.4B revenue base
these are the devices workers carry in warehouses and stores. they sit inside the full $5.4B business and help explain why Zebra earns a 15.6% net margin instead of commodity-hardware margins.
workflow anchor
data capture hardware
Barcode Scanners
part of the same $5.4B engine
scanners are boring in the best way. they make daily operations work, and boring tools can become sticky tools. that matters when you are defending 18% return on equity.
sticky install base
labeling and item-level tracking
Printers and RFID
rfid is a stated growth lever
management is leaning on RFID to help performance this year. if that shows up, it supports the current $17.65 EPS estimate. if it does not, the multiple is less of a bargain than it looks.
growth lever
Key numbers
$318
Target price
That is 23% above $257.79, so the market is not pricing in much heroics.
16.3x
Trailing P/E
You are paying 16.3 years of trailing earnings for the stock, before growth.
13.0%
Operating margin
For every $100 in sales, Zebra keeps $13 before interest and taxes.
12.5%
Return on capital
The business earns $12.50 for every $100 it puts to work.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- long-term debt $2.3B (15% of capital)
- net profit margin 16.1% — keeps 16 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ZBRA 3 years ago → it's now worth $8,140.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Zebra missed by $0.01, and sales still came in at $3.9B.
The miss was tiny. Revenue was $3.9B, up 197% vs. prior year, and gross margin was 48.3%.
$3.9B
revenue
$4.33
eps
48.3%
gross margin
the number that mattered
The $0.01 EPS miss matters less than the $3.9B revenue base, because sales still looked huge and margins stayed at 48.3%.
-
rfid technology should also help boost performance this year.the company has a comprehensive portfolio of rfid products, including readers, printers, and tags, which enable new use cases like theft prevention, inventory accuracy, and tracking fresh produce. these applications are helping customers improve efficiency and reduce costs, which in turn drives demand for zebra’s solutions.
-
the acquisition of elo should help drive growth.elo’s expertise in touchscreens and self-service kiosks complements zebra’s enterprise mobility and automation solutions, enabling the company to offer a seamless experience for customers in retail, quick-service restaurants, and healthcare. the integration of elo is expected to drive both cost and geographic expansion, with a commitment to $25 million in over the next three years.
-
the economy is having a mixed impact on zebra.on one hand, economic uncertainty, including inflation, fluctuating interest rates, and tariff changes, has created a cautious environment for some of its customers. this has led to delays in project timelines, as businesses are hesitant to accelerate spending or commit to large-scale investments. on the other hand, zebra is benefiting from long-term trends in the economy, such as the push for digitization and automation.
-
shares of zebra are neutrally ranked (timeliness: 3).
-
at this juncture, price appreciation potential over the 35-year time frame is above average.
source: company earnings report, 2026
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What could go wrong
the #1 risk is customer project delays in warehouse and retail automation.
med
enterprise spending pauses
management already points to a cautious customer backdrop. when projects get delayed, revenue can stall even if the long-term demand story stays intact.
with no segment breakout on this page, a slowdown can wash across the full $5.4B revenue base rather than one small corner of the business.
med
earnings quality slips if the quarterly margin is the new normal
full-year net margin is 15.6%, but the latest quarter came in at 7.7%. that gap is large. if it does not rebound, the cheap-looking p/e is telling you something unpleasant.
at $257.79, your valuation support leans on the $17.65 EPS estimate holding up. weaker margins make that estimate harder to defend.
med
elo integration has to become results, not just strategy
the acquisition makes sense on paper because kiosks and touchscreens fit Zebra's retail footprint. until it shows up in growth or margins, it is still an argument, not evidence.
the stock is already trading against a $318 midpoint target. if the integration does not improve the earnings path, that target starts to look generous.
between project delays, a 7.7% quarterly margin, and limited segment disclosure, the main risk is simple: you are underwriting a recovery in a business where the whole $5.4B revenue base can feel the cycle.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
whether 7.7% was a dip or a warning
full-year net margin is 15.6%. last quarter was 7.7%. that spread is the first number you should check next earnings.
growth
can revenue stay above the recent +8.3% pace
if growth holds while margins recover, the low-teens earnings multiple starts to look more like a setup than a warning label.
earnings
next quarter has to reconcile the mixed signal
Zebra just posted $1.97 EPS on $1.3B in revenue and beat estimates while still showing a 25% EPS drop from a year ago.
ownership
institutional buying is positive, but only barely
355 buyers versus 337 sellers is a positive read, not a stampede. you want that support to strengthen if the stock is going to close the gap with the market.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a strong near-term edge either way.
risk profile
average
stability score 3 — this is not a bunker stock, but it is not chaos either.
chart momentum
average
technical score 3 — the chart is behaving like a stock waiting for a better argument.
earnings predictability
60 / 100
good enough for a model, loose enough for surprises. that fits the recent beat-plus-slowdown combo.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 355 buyers vs. 337 sellers in 3q2025. total institutional holdings: 47.8M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$200
$436
$258
current price
$318
target midpoint · +23% from current · 3-5yr high: $560 (+115% · 21% ann'l return)
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