Zebra TechnologiesZBRA +3.33%78 Gross Margin % is 49.63% as of Mar. 2026, which is 7% above its 10-year median of 46.51. GuruFocus rates ZBRA with a GF Score™ of 78/100 and a GF Value™ of $334.26 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,450 Hardware companies, Zebra Technologies ranks better than 85.76% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Zebra Technologies had a gross margin of 49.63% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Zebra Technologies Gross Margin % Related Terms
Zebra Technologies Gross Margin % Historical Data
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The historical data trend for Zebra Technologies's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ZBRA vs VIAV, VSAT, AAOI: Gross Margin % Comparison
For the Communication Equipment subindustry, Zebra Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zebra Technologies Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Zebra Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zebra Technologies's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Zebra Technologies (ZBRA) has a Gross Margin % of 49.63% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zebra Technologies and its competitors. This is near median its historical median of 46.51. Over the past decade, Zebra Technologies' Gross Margin % has ranged from 45.03 to 48.44. According to the industry distribution chart, Zebra Technologies ranks #349 out of 2450 companies in the Hardware industry, placing it in the top 14.2%.
Is Zebra Technologies' Gross Margin % too high?
Zebra Technologies' current Gross Margin % of 49.63% is near median its 10-year median of 46.51. Over the past 10 years, this metric has ranged from a low of 45.03 to a high of 48.44. The Hardware industry median Gross Margin % is 24.53. Zebra Technologies' value of 49.63% is 102.3% above this industry median. Based on the distribution chart, Zebra Technologies ranks #349 out of 2450 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Zebra Technologies has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zebra Technologies' Gross Margin % compare to VIAV and VSAT?
According to the Hardware industry distribution chart, Zebra Technologies ranks #349 out of 2450 companies for Gross Margin %. This places Zebra Technologies in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Zebra Technologies' value of 49.63% is 102.3% above this benchmark. Historically, Zebra Technologies' own Gross Margin % has ranged from 45.03 to 48.44 over the past decade. While the company's 10-year median is 46.51 vs. the industry median of 24.53, Zebra Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zebra Technologies's current Gross Margin % of 49.63% is 102.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Zebra Technologies and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zebra Technologies's current Gross Margin % is 49.63%, which is near median its own 10-year median of 46.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zebra Technologies stock overvalued right now?
Based on GuruFocus' analysis, Zebra Technologies (ZBRA) is currently considered Modestly Undervalued. The stock's GF Value™ is $334.26, compared to a current price of $251.51 — trading 24.8% below its estimated fair value. The current Gross Margin % is 49.63%, which is near median its 10-year median of 46.51 and 102.3% above the Hardware industry median of 24.53. Zebra Technologies' overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Zebra Technologies (ZBRA), the current Gross Margin % is 49.63% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zebra Technologies (ZBRA) Overvalued in 2026?
Based on GuruFocus' analysis, Zebra Technologies stock appears to be undervalued.
The current stock price of $251.51 is trading 24.8% below its estimated GF Value™ of $334.26.
GuruFocus considers Zebra Technologies to be Modestly Undervalued.
Key valuation signals for ZBRA:
Gross Margin %: 49.63% (near median its 10-year median of 46.51)
GF Value™: $334.26 vs. price of $251.51 (24.8% below fair value)
Industry Position: 102.3% above the Hardware median (#349 of 2450)
No single metric tells the full story. See the ZBRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zebra Technologies is the largest provider of automatic identification and data capture technology to enterprises. Its solutions include barcode printers and scanners, mobile computers, and workflow optimization software. The firm primarily serves the retail, transportation logistics, manufacturing, and healthcare markets, designing custom solutions to improve efficiency at its customers.
78GF Score
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