Zebra Technologies (NASDAQ:ZBRA) shares jumped nearly 9% in early trading Thursday after the company paired a fourth-quarter revenue beat with an optimistic 2026 forecast and a massive new $1 billion share repurchase authorization.
The results signal a successful pivot as the company streamlines its portfolio to focus on high-growth automation and digital workflow segments.
The company reported fourth-quarter net sales of $1.475 billion, a 10.6% increase over the prior year, driven by robust demand in healthcare and manufacturing.
While net income fell 57% to $70 million, the decline was primarily attributed to $76 million in pre-tax exit and restructuring charges.
These costs stem from Zebra’s strategic decision to exit its autonomous mobile robotics business and integrate its recent $1.3 billion acquisition of Elo Touch Solutions.
On an adjusted basis, Zebra’s performance remained steady.
Non-GAAP diluted earnings per share rose 8.3% to $4.33, matching analyst consensus.
Adjusted EBITDA grew 10.5% to $326 million, maintaining a healthy margin of 22.1% despite slight pressure on software margins.
Looking ahead, Zebra provided a bullish 2026 outlook that exceeded market expectations.
The company projects full-year sales growth between 9% and 13%, with non-GAAP EPS expected to land between $17.70 and $18.30—a significant jump from 2025 levels.
For the first quarter of 2026, the company anticipates even faster top-line growth of 11% to 15%, fueled by a combination of organic demand and acquisition contributions.