Abstract

Zebra Technologies will report fiscal results on February 12, 2026 Pre-Market; investors are watching whether improving order activity and software attach can lift revenue and margins, with Street models pointing to sequential acceleration and a rebound in earnings per share.

Market Forecast

Consensus modeling for the current quarter indicates revenue of $1.46 billion, an estimated year-over-year increase of 10.82%, and adjusted EPS of $4.33, implying year-over-year growth of 9.78%. Forecast EBIT stands at $293.38 million, suggesting year-over-year expansion of 7.10%; margin forecasts were not disclosed.

The main business remains hardware-driven with a complementary software and services layer; management’s focus on solution bundles and attach rates is a key theme for the near-term outlook. Within the portfolio, services and software presents the most scalable growth opportunity by mix shift and recurring characteristics, supported by a last-quarter revenue base of $0.24 billion.

Last Quarter Review

In the previous quarter, Zebra Technologies delivered revenue of $1.32 billion, a gross profit margin of 48.03%, GAAP net income attributable to shareholders of $101.00 million with a net profit margin of 7.65%, and adjusted EPS of $3.88, with revenue rising 5.18% year over year and adjusted EPS up 11.18% year over year.

Sequential profit softened as net income decreased by 9.82% quarter over quarter, reflecting mix and spending normalization after a period of cautious channel demand. The main business composition was $1.08 billion in tangible products and $0.24 billion in services and software, underscoring a diversified model anchored by devices complemented by software and lifecycle offerings.

Current Quarter Outlook (with major analytical insights)

Core Hardware and Solutions

The core hardware and solutions business anchors absolute revenue and remains the largest contributor to quarterly sales, printing at $1.08 billion in the last reported period. The current-quarter revenue estimate of $1.46 billion implies both seasonal uplift and improving demand conditions, consistent with broader ordering stabilization signaled in the prior update. For this segment, the balance of volume and price is essential for gross margin trajectory; the prior quarter’s 48.03% gross margin sets a reference point, and tighter discounting alongside improved mix in premium devices could aid conversion. Execution sensitivity centers on backlog quality, channel inventory levels, and the cadence of replacement cycles for enterprise devices.

A key swing factor is customer spending discipline amid budget resets early in the calendar year. If order visibility continues to improve, shipment linearity and factory utilization could better align with demand, mitigating overhead absorption pressures. Conversely, any push-outs from large enterprise customers would ripple into utilization and short-cycle revenue, weighing on fixed-cost leverage. Pricing discipline and product mix will influence not only gross margin but also the EBITDA and EBIT bridge versus the $293.38 million forecast.

Services and Software Expansion

Services and software accounted for $0.24 billion last quarter and remains a critical lever for quality of earnings, due to higher attach rates and potential for recurring revenues. The Street’s adjusted EPS estimate of $4.33 embeds some contribution from software-led margins; the degree of software attach to new hardware, renewals on existing installed base, and cross-sell of lifecycle services are focal points. A higher software and services mix can reduce volatility in earnings by smoothing revenue recognition and improving gross-to-operating margin conversion.

Investors will watch net retention dynamics and the pace of new logo wins within subscriptions and support contracts. Even modest expansion in the services and software mix could provide incremental basis points of gross margin, as seen in the stable 48.03% margin last quarter in a mixed demand environment. The glidepath for EBIT toward the $293.38 million forecast assumes cost control and scale efficiencies in service delivery; if attach rates or renewals exceed plan, margin sensitivity could skew positively.

Stock Price Drivers This Quarter

The stock’s near-term reaction is likely to hinge on four measurable checkpoints: revenue delivery versus the $1.46 billion estimate, adjusted EPS versus $4.33, order and backlog commentary for enterprise spending into mid-2026, and operating expense discipline relative to revenue growth. Upside likely requires confirmation that order momentum observed late in the prior period carried into January and early February, while downside risks include any sign of renewed elongation in customer decision cycles.

Gross margin cadence remains a closely watched variable. With a 48.03% base last quarter, incremental gains will depend on product mix, discounting levels, and supply chain costs. Operating leverage on selling and R&D expenses will determine how much of any gross margin outperformance flows to EBIT, which is currently modeled at $293.38 million. Finally, capital deployment updates—whether prioritizing organic investments, integration progress, or balance sheet conservatism—may influence sentiment on sustainability of earnings beyond the quarter.

Analyst Opinions

Among research commentaries published between January 01, 2026 and February 05, 2026, the majority registered a bullish stance. A recent note from Barclays reaffirmed a Buy rating on Zebra Technologies with a price target of $368.00, citing confidence in the earnings trajectory and benefits from strategic initiatives. This aligns with consensus expectations for revenue growth of 10.82% and adjusted EPS of $4.33 this quarter, implying improving year-over-year comparisons and operating leverage.

The bullish view emphasizes two points. First, the order environment and customer engagement metrics appear to be firming, consistent with revenue estimates that accelerate from the prior quarter’s 5.18% year-over-year revenue growth to a projected 10.82% gain. Second, the margin framework remains constructive: even with limited visibility into gross or net margin forecasts, the prior quarter’s 48.03% gross margin and 7.65% net margin set a platform for incremental efficiency as mix shifts toward software and services. Analysts argue that successful execution on software attach and measured operating expense growth can support EPS delivery or potential upside versus the $4.33 estimate.

Within this perspective, the primary watch items are linearity of bookings, inventory normalization across channels, and progress on software-driven expansion. Bulls contend that the services and software base of $0.24 billion offers headroom for continued mix improvement, while the tangible products franchise at $1.08 billion provides scale to capture recovering enterprise demand. Should Zebra Technologies meet or exceed the $1.46 billion revenue and $293.38 million EBIT forecasts, the argument holds that valuation could remain supported by better visibility into a steadier earnings cadence through 2026.