Abstract

Zebra Technologies will report second-quarter results on August 04, 2026 Pre-Market; this preview summarizes consensus expectations for revenue, profitability, and EPS alongside key segment dynamics and recent analyst views within the January 01, 2026 to July 28, 2026 window.

Market Forecast

Consensus points to second-quarter revenue of 1.50 billion US dollars, implying 16.40% year-over-year growth, with estimated EBIT of 283.00 million US dollars, up 24.38% year over year, and estimated adjusted EPS of 4.36, up 31.16% year over year. Management’s qualitative outlook implies continued improvement in mix and services attachment; the forecast suggests operating leverage, with margin gains versus last year. The main businesses are hardware-centric “tangible products” and “services and software.” The most promising segment is services and software, a smaller base but recurring and higher-margin engine that is set to outgrow hardware; its revenue last quarter was 264.00 million US dollars, and it is expected to grow faster year over year than tangible products as modernization and cloud subscriptions scale.

Last Quarter Review

Last quarter, Zebra posted revenue of 1.50 billion US dollars, a gross profit margin of 49.63%, GAAP net profit attributable to shareholders of 135.00 million US dollars, a net profit margin of 9.03%, and adjusted EPS of 4.75, with year-over-year growth of 14.30% for revenue and 18.16% for EPS. Quarter on quarter, net profit rose 92.86%, reflecting improved operating efficiency and a healthier mix. A notable positive was the breadth of improvement in profitability, with EBIT of 328.00 million US dollars growing 19.27% year over year. Main business momentum skewed toward tangible products at 1.23 billion US dollars, while services and software delivered 264.00 million US dollars; services’ structural contribution continues to rise due to software attach and maintenance contracts.

Current Quarter Outlook

Main business: Auto-ID hardware and solutions

Zebra’s core tangible products franchise, including mobile computers, scanners, RFID, and printing, remains the largest revenue driver. The forecasted 1.50 billion US dollars of revenue and 283.00 million US dollars of EBIT imply continued demand normalization from enterprise, retail, healthcare, and logistics customers as inventory digestion completes and project activity resumes. Margins benefit from steady gross margin near the high-40s, aided by pricing discipline, product mix, and supply-chain cost normalization. The near-term swing factors are enterprise spending cadence and large-deal timing, plus replacement cycles for installed fleets in retail and logistics. Hardware bookings sensitivity to macro spending and warehouse automation timelines remains material, yet the quarter’s estimated double-digit revenue and EBIT growth suggest a constructive setup.

Most promising business: Services and software

Services and software, at 264.00 million US dollars last quarter, is positioned for faster year-over-year expansion than hardware as subscription and maintenance intensity increase across the installed base. Higher renewal rates and broader adoption of device management, analytics, and workflow software improve visibility and expand gross margin mix. As more customers standardize on Zebra’s device-as-a-service constructs and cloud-based management tools, attachment per device should rise, supporting operating leverage. The performance hinge this quarter is on renewals and expansions in large enterprise accounts alongside cross-sell into healthcare and transportation customers. Given the expected revenue growth and margin resilience, this segment can dampen volatility from cyclical hardware orders.

Stock-price drivers this quarter

Investors will focus on the relation between revenue growth and operating leverage, particularly whether EBIT grows faster than revenue as the model scales. Order intake and backlog commentary will guide the second-half trajectory, especially in retail and logistics modernization projects. Segment mix will matter: incremental gains from services and software could lift gross margin above the historical average and support EPS outperformance. Any commentary on RFID adoption in supply chain traceability and healthcare asset tracking could shape multi-quarter growth expectations. Conversely, signs of elongated enterprise decision cycles or weaker large deals would pressure the outlook.

Analyst Opinions

Bullish opinions dominate among recent institutional commentaries within the January 01, 2026 to July 28, 2026 period, with the majority highlighting reacceleration in demand and a favorable margin mix from services and software. Several well-followed equity research desks point to above-consensus potential for EBIT growth this quarter given inventory normalization and improved pricing discipline. The prevailing view is that double-digit revenue growth alongside a higher contribution from recurring services can sustain EPS expansion above revenue growth. Analysts emphasize improved order trends in retail and healthcare channels and continued momentum in RFID projects within logistics. The bullish camp argues that guidance risk appears balanced to positive, with room for upside on EPS if gross margin holds near last quarter’s level and operating expenses remain contained.