Zebra Technologies Reports Strong Q3 2026 Growth Amidst Memory Component Cost Headwinds
Zebra Technologies (ZBRA) reported robust third-quarter 2026 results, with net sales reaching $1.614 billion, a 22.3% increase year-over-year. This growth was driven by high demand for digitization and automation across all segments, particularly in the Connected Frontline and Asset Visibility & Automation divisions. Non-GAAP diluted earnings per share rose 27.6% to $4.95, benefiting from increased sales volume and operating leverage. Despite strong top-line performance, the company faced significant margin pressure due to rising memory component costs, which led to a 220-basis-point decline in adjusted gross margin to 46%. To combat these headwinds, Zebra implemented a 15% price increase for mobile computing in October 2026. Management raised its full-year sales growth outlook to 17%, signaling confidence in continued demand despite ongoing component price volatility expected through the first half of 2027.
Tickers: $ZBRA
Topics: EPS increase memory cost headwinds net sales growth operating leverage segment performance
Read the full article at Motley Fool
Part of the story Sunrun Reports Q3 2026 Revenue Growth Amidst Lowered Cash Generation Guidance (25 articles)