Q1 2026 Zebra Technologies Corp Earnings Call Transcript
Key Points
- Zebra Technologies Corp (ZBRA) achieved strong Q1 results with a 14% increase in sales, reaching nearly $1.5 billion.
- The company expanded its adjusted EBITDA margin by 90 basis points to 23.2%, driven by a multiyear high gross margin and operating expense leverage.
- Zebra Technologies Corp (ZBRA) executed $500 million of share repurchases year-to-date, demonstrating strong financial positioning.
- The company raised its full-year sales growth outlook to between 10% and 14%, reflecting confidence in ongoing demand and operational execution.
- Zebra Technologies Corp (ZBRA) continues to innovate, launching new enterprise mobile computers and wearables with embedded RFID and AI processing capabilities.
- Memory supply constraints remain a concern, although Zebra Technologies Corp (ZBRA) is confident in its mitigation strategies.
- The company anticipates a sequential decline in EBITDA margin from Q1 to Q2 due to increased memory costs.
- Despite strong Q1 results, the company faces challenges in maintaining the same level of deal mix favorability and FX benefits in subsequent quarters.
- The company experienced a decline in RFID sales in Q1 due to strong year-ago comparisons, although growth is expected to resume in Q2.
- Freight costs have increased by 20% to 30%, which could impact margins, although Zebra Technologies Corp (ZBRA) has incorporated these into its guidance.
Good day, and welcome to the Zebra Technologies first-quarter earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to hand the call over to Michael Steele, Vice President of Investor Relations. Please go ahead.
Good morning, and welcome to Zebra's first quarter earnings conference call. This presentation is being simulcast on our website at investors.zebra.com and will be archived there for at least one year. Our forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially, and we refer you to the risk factors discussed in our SEC filings. During this call, we will reference non-GAAP financial measures as we describe business performance with reconciliations shown at the end of the slide presentation and in our earnings press release.
Throughout this presentation, unless otherwise indicated, our references to
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