Zebra TechnologiesZBRA +4.16%80 Operating Margin % is 14.98% as of Mar. 2026, which is 1% below its 10-year median of 15.14. GuruFocus rates ZBRA with a GF Score™ of 80/100 and a GF Value™ of $334.13 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,472 Hardware companies, Zebra Technologies ranks better than 85.76% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Zebra Technologies Operating Margin % Related Terms
Zebra Technologies Operating Margin % Historical Data
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The historical data trend for Zebra Technologies's Operating 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: Operating Margin % Comparison
For the Communication Equipment subindustry, Zebra Technologies's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Zebra Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zebra Technologies's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Zebra Technologies's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Zebra Technologies (ZBRA) has a Operating Margin % of 14.98% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Zebra Technologies and its competitors. This is near median its historical median of 15.14. Over the past decade, Zebra Technologies' Operating Margin % has ranged from 8.00 to 17.97. According to the industry distribution chart, Zebra Technologies ranks #352 out of 2472 companies in the Hardware industry, placing it in the top 14.2%.
Is Zebra Technologies' Operating Margin % too high?
Zebra Technologies' current Operating Margin % of 14.98% is near median its 10-year median of 15.14. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 17.97. The Hardware industry median Operating Margin % is 3.80. Zebra Technologies' value of 14.98% is 294.2% above this industry median. Based on the distribution chart, Zebra Technologies ranks #352 out of 2472 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 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zebra Technologies' Operating Margin % compare to VIAV and VSAT?
According to the Hardware industry distribution chart, Zebra Technologies ranks #352 out of 2472 companies for Operating Margin %. This places Zebra Technologies in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Zebra Technologies' value of 14.98% is 294.2% above this benchmark. Historically, Zebra Technologies' own Operating Margin % has ranged from 8.00 to 17.97 over the past decade. While the company's 10-year median is 15.14 vs. the industry median of 3.80, 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 Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zebra Technologies's current Operating Margin % of 14.98% is 294.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Zebra Technologies and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zebra Technologies's current Operating Margin % is 14.98%, which is near median its own 10-year median of 15.14. 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 $334.13, compared to a current price of $247.89 — trading 25.8% below its estimated fair value. The current Operating Margin % is 14.98%, which is near median its 10-year median of 15.14 and 294.2% above the Hardware industry median of 3.80. Zebra Technologies' overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Zebra Technologies (ZBRA), the current Operating Margin % is 14.98% 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 $247.89 is trading 25.8% below its estimated GF Value™ of $334.13.
GuruFocus considers Zebra Technologies to be Modestly Undervalued.
Key valuation signals for ZBRA:
Operating Margin %: 14.98% (near median its 10-year median of 15.14)
GF Value™: $334.13 vs. price of $247.89 (25.8% below fair value)
Industry Position: 294.2% above the Hardware median (#352 of 2472)
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.
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