📊 ZBRA Key Takeaways
Is Zebra Technologies Corp. (ZBRA) a Good Investment?
Zebra Technologies demonstrates solid cash flow generation and manageable leverage, but faces significant operational headwinds with net income declining 20.6% despite 8.3% revenue growth, indicating margin compression or underlying operational challenges. Weak return metrics (ROE 3.9%, ROA 1.6%) and deteriorating liquidity ratios signal capital efficiency concerns and potential near-term cash constraints despite strong debt servicing capacity.
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.
Zebra Technologies Corp. Key Strengths (ZBRA)
- Strong free cash flow of $163M with 10.9% FCF margin demonstrates underlying business cash generation capability
- Excellent interest coverage ratio of 43.0x provides substantial debt service cushion and financial flexibility
- Solid gross margin of 49.6% and moderate debt-to-equity ratio of 0.77x indicate reasonable operational profitability and balanced capital structure
- 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
- Severe earnings deterioration with net income down 20.6% and EPS down 19.6% YoY despite revenue growth signals margin compression or one-time charges requiring explanation
- Liquidity metrics below acceptable thresholds with current ratio of 0.96x and quick ratio of 0.57x indicate potential short-term cash constraints
- Weak return on equity (3.9%) and return on assets (1.6%) suggest inefficient capital deployment across the $8.3B asset base
- 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
- Operating margin trend and root causes of earnings decline relative to revenue growth
- Current and quick ratios movement and cash position adequacy
- Return on equity and asset efficiency metrics to assess capital deployment effectiveness
- 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 |
|---|---|---|---|
| Q1 2026 | $1.3B | $135.0M | $2.62 |
| 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 |
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
❓ Frequently Asked Questions about ZBRA
What is the AI rating for ZBRA?
Zebra Technologies Corp. (ZBRA) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ZBRA's key strengths?
Claude: Strong free cash flow of $163M with 10.9% FCF margin demonstrates underlying business cash generation capability. Excellent interest coverage ratio of 43.0x provides substantial debt service cushion and financial flexibility. 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: Severe earnings deterioration with net income down 20.6% and EPS down 19.6% YoY despite revenue growth signals margin compression or one-time charges requiring explanation. Liquidity metrics below acceptable thresholds with current ratio of 0.96x and quick ratio of 0.57x indicate potential short-term cash 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 $1.5B.
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 $2.72.
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 grade reflects both perspectives for balanced insights.
What is ZBRA's fundamental grade?
Based on our AI fundamental analysis in June 2026, Zebra Technologies Corp. has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ZBRA stock overvalued or undervalued?
Valuation metrics for ZBRA: ROE of 3.9% (sector avg: 15%), net margin of 9.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ZBRA's AI grade for 2026?
Our dual AI analysis gives Zebra Technologies Corp. a combined B grade 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 $176.0M, with capital expenditures of $13.0M. FCF margin is 10.9%.
How does ZBRA compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 9.0% (avg: 10%), ROE 3.9% (avg: 15%), current ratio 0.96 (avg: 1.8).