Zebra revenue reaches $1.50B, non-GAAP EPS jumps to $4.75

Zebra Technologies (NASDAQ:ZBRA) reported net sales of $1,495 million for the first quarter ended April 4, 2026, representing a 14.3% increase over the prior-year period.

While the top line slightly missed consensus estimates of $1.51 billion, the company demonstrated exceptional operating leverage.

Non-GAAP diluted EPS rose to $4.75, comfortably beating the Wall Street estimate of $4.33, while adjusted EBITDA climbed to $347 million, reflecting a margin of 23.2%.

The quarter’s performance was anchored by broad-based organic growth across all geographic regions, with particular strength in the manufacturing end market.

CEO Bill Burns noted that the integration of Elo Touch, acquired in late 2025, has begun to yield significant profitable synergies.

The company also benefited from the rollout of its next-generation TC501 and TC701 handhelds—the industry’s first AI-native mobile computers featuring Wi-Fi 7 and 5G connectivity—which have seen rapid adoption in retail and warehousing environments.

In a major strategic shift during the quarter, Zebra announced the sale of its Robotics Automation division to Skild AI.

The transaction includes cash consideration and an equity stake in Skild AI, allowing Zebra to sharpen its focus on high-growth areas such as RFID, machine vision, and "Physical AI."

By offloading the capital-intensive hardware side of robotics while maintaining an equity interest in generalized robot intelligence, Zebra is pivoting toward a software-centric fulfillment orchestration model via its Symmetry platform.

Following the robust start to the year, management increased its full-year 2026 guidance.

Net sales growth are now expected between 9% and 13% for the full year.