Zebra shares fall 8.62% premarket despite revenue and earnings topping estimates
Key Facts
Zebra shares fell 8.62% in premarket trading on November 3, 2026, after the company reported third-quarter results and issued fourth-quarter guidance. The decline followed quarterly results that topped analysts’ estimates for revenue and adjusted earnings per share. Revenue was $1.61 billion, versus an estimate of $1.57 billion, while adjusted EPS was $4.95, compared with consensus of $4.89. But the company forecast fourth-quarter EPS of $5.00 to $5.40, a range Investing.com’s coverage described as below expectations. Analyst consensus for fourth-quarter earnings was $5.21 per share.
The midpoint of Zebra’s fourth-quarter EPS guidance is $5.20, slightly below analyst consensus of $5.21. The guidance places the company’s estimate below the market forecast, although the high end of the range reaches $5.40 per share. Investing.com’s coverage said the guidance range of $5.00 to $5.40 was below expectations. The comparison between quarterly results and the outlook for the next period highlights the mixed reception to the announcement: the company beat third-quarter estimates, while its earnings guidance for the following period was weaker than analyst consensus. The stock fell 8.62% in premarket trading after the results were released.
Second-quarter results provide a backdrop for comparing the company’s performance before the third-quarter announcement. Net sales were $1,557 million in the second quarter of 2026, up 20.4% year over year, and non-GAAP diluted EPS was $6.35. In August, Zebra had forecast third-quarter sales growth of 17% to 20% and non-GAAP diluted EPS of $4.70 to $4.90. These figures relate to the company’s earlier guidance and the second quarter, while reported third-quarter adjusted EPS was $4.95. Earlier coverage on November 2 noted that the company raised prices by up to 15% across major product lines in early October, citing supply-chain pressures and higher component costs, particularly memory chips.
Zebra announced the date of its third-quarter results for November 3, 2026, and scheduled its results call for the same day at 7:30 a.m. Central time. The stock’s premarket decline came after the results and guidance were released. The last available closing price before the announcement was $361.13 on November 2. The stock also closed at $361.26 on October 30, after closing at $377.38 on October 29. These prices relate to trading sessions before the announcement, while the reported decline following the results was 8.62% in premarket trading.