Zebra Technologies (ZBRA) Stock Forecast & Price Target

Zebra Technologies reported a strong performance with a total revenue increase of 10.6% to $1.48 billion, which is at the upper end of their guidance for year-over-year growth, reflecting a robust demand across various sectors. Key segments such as Connected Frontline and Enterprise Visibility & Mobility demonstrated solid growth, with organic increases of 3.6% and 2.4% year-over-year, respectively, driven by strong performance in RFID solutions. Additionally, the company's guidance for 2026 NG EPS has been raised to $18.00, up from $17.00, supported by anticipated revenues of $6.0 billion, indicating increasing optimization in their financial outlook.

Zebra Technologies reported a flat gross margin of 48.2% relative to the previous quarter, with a year-over-year decline of 50 basis points primarily attributed to a reduced mix of services and software. The company's organic sales in the EMEA region declined by 3%, primarily due to weakness in key markets such as Germany and France, raising concerns about decelerating organic growth. Additionally, the adjusted gross margin of 46.8% reflects a 240 basis point decrease year-over-year, driven by a decline in higher-margin data capture products and increased tariff costs, further contributing to a negative outlook for the stock.