CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Zebra Technologies Corporation's (ZBRA) Q1 sales of $1,495M (+14% Y/Y) beat consensus of $1,478M, while non-GAAP EPS of $4.75 (+18% Y/Y) exceeded estimates of $4.25 and guidance of $4.35. Adjusted gross margin expanded 80 bps to 50% and EBITDA margin grew 90 bps to 23%, showing operational leverage, with profitability growing faster than revenue. Balanced segment performance across Connected Frontline ($825M, ~4% organic) and Asset Visibility & Automation ($670M, ~5% organic) validates diversification strategy with no single end market dependence. Management raised 2026 guidance to 10%-14% sales growth with EPS of $18.30-$18.70, showing momentum. The company executed $300M in share repurchases supported by strong free cash flow of $163M, with management committed to returning $600M over two quarters. We believe broad-based growth, margin expansion, and aggressive capital allocation reflect management's confidence in recovery durability and position ZBRA well to capitalize on automation and Physical AI trends.