📊 ZBRA Key Takeaways
Is Zebra Technologies Corp. (ZBRA) a Good Investment?
Zebra demonstrates solid operational fundamentals with strong revenue growth (8.3% YoY) and exceptional cash generation (FCF of $831M with 15.4% margin), supported by robust interest coverage of 140x. However, deteriorating profitability is a concern, with net income declining 20.6% YoY despite revenue growth, indicating margin compression and rising costs that warrant monitoring.
Zebra Technologies shows solid fundamental quality through strong revenue growth, high gross margins, and excellent free cash flow generation, indicating a resilient operating model. However, the decline in net income and EPS despite higher sales, combined with thin near-term liquidity, suggests the business is in a mixed phase where execution and margin stability matter more than top-line growth alone.
Why Buy Zebra Technologies Corp. Stock? ZBRA Key Strengths
- Exceptional free cash flow generation ($831M) with healthy 15.4% FCF margin, providing substantial capital allocation flexibility
- Strong gross margin of 48.1% demonstrates pricing power and efficient production in industrial automation sector
- Outstanding interest coverage ratio of 140x indicates minimal debt service risk and financial stability despite $2.4B long-term debt
- Consistent revenue growth of 8.3% YoY shows market demand for products and services
- Strong free cash flow generation with $831M of FCF and a 15.4% FCF margin
- Healthy gross profitability at 48.1% and solid operating margin at 13.0%
- Manageable leverage supported by very high interest coverage of 140.0x
ZBRA Stock Risks: Zebra Technologies Corp. Investment Risks
- Significant net income decline of 20.6% YoY with diluted EPS falling 19.6% despite positive revenue growth signals margin pressure and operational challenges
- Current ratio of 0.97x below 1.0x threshold indicates potential short-term liquidity stress and working capital constraints
- Operating margin compression to 13.0% from implied higher levels suggests rising operating expenses outpacing revenue growth
- Low cash position of $125M relative to $8.5B total assets and $2.4B debt raises refinancing and operational flexibility concerns
- Net income and diluted EPS declined roughly 20% year over year despite revenue growth
- Current ratio of 0.97x and quick ratio of 0.58x indicate limited short-term liquidity cushion
- Low cash balance of $125M reduces flexibility if working capital needs or demand volatility increase
Key Metrics to Watch
- Net margin recovery trajectory and operating expense control in subsequent quarters
- Working capital management and current ratio improvement to strengthen liquidity position
- Free cash flow sustainability as capital expenditure levels and whether margin compression continues
- Operating and net margin trend versus revenue growth
- Liquidity improvement, especially cash balance and current ratio
Zebra Technologies Corp. (ZBRA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ZBRA Profit Margin, ROE & Profitability Analysis
ZBRA vs Industrial Sector: How Zebra Technologies Corp. Compares
How Zebra Technologies Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Zebra Technologies Corp. Stock Overvalued? ZBRA Valuation Analysis 2026
Based on fundamental analysis, Zebra Technologies Corp. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Zebra Technologies Corp. Balance Sheet: ZBRA Debt, Cash & Liquidity
ZBRA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Zebra Technologies Corp.'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $5.72 reflects profitable operations.
ZBRA Revenue Growth, EPS Growth & YoY Performance
ZBRA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.3B | $101.0M | $1.97 |
| Q2 2025 | $1.2B | $112.0M | $2.17 |
| Q1 2025 | $1.2B | $115.0M | $2.23 |
| Q3 2024 | $956.0M | -$15.0M | $-0.28 |
| Q2 2024 | $1.2B | $113.0M | $2.17 |
| Q1 2024 | $1.2B | $115.0M | $2.23 |
| Q3 2023 | $956.0M | -$15.0M | $-0.28 |
| Q2 2023 | $1.2B | -$98.0M | $-1.87 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Zebra Technologies Corp. Dividends, Buybacks & Capital Allocation
ZBRA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Zebra Technologies Corp. (CIK: 0000877212)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 9, 2026 | 4 | xslF345X06/wk-form4_1775765580.xml | View → |
| Apr 9, 2026 | 4 | xslF345X06/wk-form4_1775765452.xml | View → |
| Apr 3, 2026 | DEF 14A | zbra-20260519xdef14a.htm | View → |
| Mar 18, 2026 | 4 | xslF345X06/wk-form4_1773867868.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773692403.xml | View → |
❓ Frequently Asked Questions about ZBRA
What is the AI rating for ZBRA?
Zebra Technologies Corp. (ZBRA) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ZBRA's key strengths?
Claude: Exceptional free cash flow generation ($831M) with healthy 15.4% FCF margin, providing substantial capital allocation flexibility. Strong gross margin of 48.1% demonstrates pricing power and efficient production in industrial automation sector. ChatGPT: Strong free cash flow generation with $831M of FCF and a 15.4% FCF margin. Healthy gross profitability at 48.1% and solid operating margin at 13.0%.
What are the risks of investing in ZBRA?
Claude: Significant net income decline of 20.6% YoY with diluted EPS falling 19.6% despite positive revenue growth signals margin pressure and operational challenges. Current ratio of 0.97x below 1.0x threshold indicates potential short-term liquidity stress and working capital constraints. ChatGPT: Net income and diluted EPS declined roughly 20% year over year despite revenue growth. Current ratio of 0.97x and quick ratio of 0.58x indicate limited short-term liquidity cushion.
What is ZBRA's revenue and growth?
Zebra Technologies Corp. reported revenue of $5.4B.
Does ZBRA pay dividends?
Zebra Technologies Corp. does not currently pay dividends.
Where can I find ZBRA SEC filings?
Official SEC filings for Zebra Technologies Corp. (CIK: 0000877212) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ZBRA's EPS?
Zebra Technologies Corp. has a diluted EPS of $8.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ZBRA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Zebra Technologies Corp. has a HOLD rating with 73% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ZBRA stock overvalued or undervalued?
Valuation metrics for ZBRA: ROE of 11.7% (sector avg: 15%), net margin of 7.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ZBRA stock in 2026?
Our dual AI analysis gives Zebra Technologies Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ZBRA's free cash flow?
Zebra Technologies Corp.'s operating cash flow is $917.0M, with capital expenditures of $86.0M. FCF margin is 15.4%.
How does ZBRA compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 7.8% (avg: 10%), ROE 11.7% (avg: 15%), current ratio 0.97 (avg: 1.8).