| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 40 | 32.1x | 17.8x | Around median | |
Growth | 65 | 12.7% | 7.1% | Around median | |
Quality | 82 | 9.4% | 4.5% | Top tier | |
Safety | 55 | 4.7x | 2.6x | Around median | |
Capital Return | 42 | — | 2.12% | Around median | |
Momentum | 84 | 14.0% | 2.9% | Top tier | |
Sentiment | 61 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Zebra Technologies provides integrated solutions to digitize and automate frontline worker operations, including mobile computing, printing, data capture, RFID, machine vision, and AI-powered software. The company generates revenue through its Connected Frontline and Asset Visibility & Automation segments, benefiting from demand in retail, manufacturing, healthcare, transportation, and logistics; it has also expanded its portfolio targeting point-of-sale, self-service, and payments through Elo Touch. Management says its portfolio serves a $35 billion addressable market, with an organic growth profile of 5% to 7% through the cycle for both segments.
In Q2 fiscal 2026, EDGAR data showed revenue of $1.6 billion, gross profit of $825 million, net income of $233 million, and earnings per share of $4.85. Based on these figures, the gross margin was approximately 51.6% and the net income margin was approximately 14.6%. The adjusted results presented by the company showed total sales growth of 20.4%, organic growth of 9.2%, an adjusted EBITDA margin of 27.7%, and adjusted earnings per share of $6.35, up 76% year over year.
Growth was broad-based in Q2 fiscal 2026; Connected Frontline sales increased by approximately 26% including Elo Touch and by 7.5% organically, while Asset Visibility & Automation sales grew 11.4%, led by printing and machine vision. Retail, manufacturing, and healthcare posted double-digit growth, with healthcare the fastest-growing end market, while transportation and logistics sales remained stable against a strong comparison base. Regionally, sales grew 9% in North America, 7% in Europe, the Middle East, and Africa, 13% in Asia-Pacific, and 15% in Latin America.
The analyst consensus rates ZBRA a "Buy," with an average target of $363.67 and a wide range from $310 to $430; the average target is approximately 5.8% below the 52-week high of $386.23, while the highest target exceeds that high. A price-to-earnings ratio is not available in the provided data, so the valuation estimate here is based on the target range and the 52-week range of $199.05–$386.23, balancing the raised outlook on August 4, 2026, against memory risks and the expected decline in the Q3 fiscal 2026 margin to approximately 22%.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Sales in Q2 fiscal 2026 increased 20.4% in total and 9.2% organically, with double-digit growth in retail, manufacturing, and healthcare. Mobile computing, printing, and machine vision are driving a significant portion of the expansion, alongside demand for Zebra Frontline AI and AI-enhanced RFID devices. Elo Touch also added strong growth in point-of-sale, self-service, and payments, while acquisitions and currencies contributed 8 points to the fiscal 2026 growth outlook.
The Connected Frontline segment grew approximately 26% including Elo Touch and 7.5% organically, led by mobile computing. The Asset Visibility & Automation segment increased 11.4%, led by printing and machine vision, while RFID projects were stable during the quarter due to project timing. Management expects both segments to grow in the second half of fiscal 2026, supported by broad-based demand across regions and end markets.
Management expects sales growth of 14% to 16%, including approximately 7% organic growth that includes about 2 points of pricing. Adjusted margin guidance ranges from 23.5% to 24%, while adjusted earnings per share are expected to range from $20.75 to $21.25. The company also expects free cash flow of at least $1 billion and a conversion rate of approximately 100%.
Automated analysis for informational purposes only — not investment advice.
Zebra expects a burden of approximately $120 million from higher memory costs in fiscal 2026, but it plans to fully offset it through pricing, productivity measures, and currencies. In Q2 fiscal 2026, it offset a $20 million increase and raised its expected annual pricing benefit from $60 million to $90 million. Nevertheless, management said on August 4, 2026, that supply constraints still separate demand supporting the high end of the outlook from guidance based near the midpoint of the range.
Elo Touch delivered strong profitable growth in Q2 fiscal 2026 and expanded Zebra's presence in point-of-sale, self-service, and payments. The company identified approximately $10 million in savings through August 4, 2026, alongside expansion into geographic regions and joint accounts and the emergence of early commercial wins. In machine vision, management said Photoneo delivered strong performance and helped strengthen Zebra's offerings alongside the internal development of its portfolio.
The company generated $361 million in free cash flow during the first half of fiscal 2026 and ended Q2 with leverage of 1.9 times and credit capacity of $925 million. It repurchased $568 million of shares in the first half, after more than $300 million in Q4 fiscal 2025. Earnings-per-share guidance includes an additional $150 million of repurchases in the second half of fiscal 2026, bringing the total to approximately $700 million for the year according to management's explanation. The ability to continue this approach depends on achieving the free cash flow outlook of at least $1 billion while maintaining balance-sheet flexibility.
