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Zebra Technologies Second Quarter Earnings Results August 4, 2026
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Safe Harbor Statement 2 Forward - looking statements made in this presentation are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and are highly dependent upon a variety of important factors, which could cause actual results to differ materially from those expressed or implied in such forward - looking statements. When used in this presentation, the words “anticipate,” “expect,” “believe,” “intend,” “estimate,” “will,” “plan,” “goal,” “target,” and “strategy” and similar expressions or futur e c onditional verbs such as “may,” “will,” “should,” “would,” and “could” as they relate to the Company or its management are intended to identify such forward - looking statements but are not the exclusive means of identi fying these statements. Actual results may differ materially from those expressed or implied by forward - looking statements. Any forward - looking statemen ts represent the Company’s views only as of the date of this report and should not be relied upon as representing the Company’s views as of any subsequent date. The forward - looking statements incl ude, but are not limited to, the Company’s financial outlook for the full year. These forward - looking statements are based on current expectations, forecasts and assumptions, and are subject to the risks and uncertainties inherent in the Company’s industry, market conditions, general domestic and international economic conditions, and other factors. These factors include: • Market acceptance of the Company’s products, services, and software solutions and competitors’ offerings and the potential ef fec ts of emerging technologies and changes in customer requirements, • The effect of global market conditions, including in North America, Europe, Middle East, and Africa (“EMEA”), Latin America, and Asia - Pacific regions in which we do business, • The impact of changes in foreign exchange rates, customs duties and trade policies due to the large percentage of our sales a nd operations being outside the U.S., • The Company’s ability to effectively manage manufacturing and operating costs, • Risks related to the manufacturing of the Company’s products and conducting business operations in non - U.S. countries, including the risk of depending on key suppliers who are also in non - U.S. countries, • The Company’s ability to purchase sufficient materials, parts, and components, and our ability to provide services, software, an d products to meet customer demand, particularly in light of global economic conditions, • The availability of credit and the volatility of capital markets, which may affect our suppliers, customers, and ourselves, • Success of integrating acquisitions, • The Company’s ability to attract, retain, develop, and motivate key personnel, • Interest rate and financial market conditions, • Access to cash and cash equivalents held outside the U.S., • The effect of natural disasters, man - made disasters, public health issues (including pandemics), and cybersecurity incidents on our business, our customers or our contracted third parties, • The impact of changes in foreign and domestic governmental policies, laws, or regulations, • The outcome of litigation in which the Company may be involved, particularly litigation or claims related to infringement of thi rd - party intellectual property rights, and • The outcome of any future tax matters or tax law changes. Descriptions of certain risks, uncertainties and other factors that could adversely affect the Company’s future operations an d r esults can be found in the Company’s filings with the Securities and Exchange Commission. In particular, please refer to the Company’s latest filing of its Form 10 - K and Form 10 - Q. The Company undertakes no obligation, other than as may be required by law, to publicly update or revise any forward - looking sta tements, whether as a result of new information, future events, changed circumstances, or any other reason after the date of this report. This presentation includes certain non - GAAP financial measures. Please refer to the reconciliations to the comparable GAAP fina ncial measures and related information contained in the Appendix.
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3 What you’ll hear from us today Record performance in Q2, demonstrating the strength of our business and supporting an increased fiscal year 2026 outlook 01 Customers are leveraging Zebra's AI - powered solutions to improve productivity, visibility and decision - making 02 03 Executing on our strategic priorities to drive long - term profitable growth, build on our industry leadership and track record of innovation, and enhance financial strength and flexibility
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4 Q2 2026 Highlights (1) (1) Refer to the appendix of this presentation for reconciliations of GAAP to non - GAAP financial measures (2) Recorded $73 million IEEPA tariff recoveries, of which $14 million received in Q2 and an additional $27 million received in J uly (3) Excludes net impact to sales growth for 12 months following business acquisitions/dispositions and foreign currency translati on Results $1.56 B Sales 27.7% Adjusted EBITDA Margin (2) $6.35 Non - GAAP Diluted EPS (2) $268M Share Repurchase 53.3% Adjusted Gross Margin (2) 26.9 % Adjusted Operating Expense % of Sales Highlights Outlook • Initiating Q3 guidance reflecting a strong start to the quarter and continued demand momentum • Increased FY26 sales, profitability, and cash flow guide reflects our strong results, continued momentum, and increased confidence in the balance of the year • 20.4 % sales growth (9.2 % organic (3) ) • Solid g rowth across all regions • Retail, Manufacturing, Healthcare outperformance • S trong profitable growth of Elo Touch business • 710 basis points adj. EBITDA margin expansion driven by record gross margin (including $73M tariff recoveries) and strong adj. operating expense leverage • 76% Non - GAAP Diluted EPS growth
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5 Strong Q2 Performance and Momentum Across Primary End Markets Retail & E - Commerce • Double - digit growth in Q2 with e - commerce and convenience stores bright spots • Elo Touch acquisition delivered strong growth benefiting from self - service trends • Customers piloting Zebra AI Suite solutions Transportation & Logistics • Flat sales on strong Q2 2025 comparisons • Third Party Logistics and warehousing bright spots • Zebra AI solutions resonating with customers • Robust multi - year pipeline of large deployments Manufacturing • Continued macro recovery driving double - digit growth this year • Electronics, Pharmaceuticals, and Medical Devices bright spots • Machine vision outperformance • Shifts in global manufacturing continue to be an opportunity Healthcare • Highest growth end market in Q2 with Urgent Care a bright spot • Strong growth in mobile computing as we equip more caregivers with enterprise - grade secure solutions Retail & E - C ommerce Transportation & Logistics Manufacturing Healthcare
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Enhancing Customer Value Through AI - Powered Solutions Building on Zebra’s unique competitive advantage as the foundation for intelligent operations DECIDE AI - Powered Orchestration SENSE Real - Time Frontline Visibility ACT AI - Driven Frontline Execution LEARN Continuous Workflow Improvement 6
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7 Strategic Priorities Growing our business profitably Building on our industry leadership by advancing innovation Enhancing financial strength and flexibility 1. 2. Driving sustainable growth across a $35B+ served market Extending our #1 market positions in enterprise mobile computing, thermal barcode printing, data capture and RFID readers* Executing with discipline through a capital - light model to drive earnings consistency *Source: VDC Research and Zebra Analysis 3 .
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Zebra offers a clear & compelling investment thesis • Market leader in mission - critical enterprise workflows, with a proven track record of innovation and execution • Positioned at the center of durable growth trends, including automation, digitization and AI - driven workflow adoption across a $35B+ served market • Uniquely positioned to be the AI leader for the frontline with integrated platform of hardware and software solutions, serving large and growing end markets • Strong, resilient financial model with attractive margins and cash generation • Disciplined capital allocation balancing reinvestment, balance sheet strength and shareholder returns Zebra offers a clear and compelling investment thesis • Industry leader in mission - critical enterprise workflows, with a proven track record of innovation and execution • Positioned at the center of durable growth trends, including automation, digitization and workflow transformation across a $35B+ served market • Uniquely positioned to be the supplier of choice of AI for the frontline with our integrated platform of hardware and software solutions, serving large and growing end markets • Strong, resilient financial model with attractive margins and cash generation • Disciplined capital allocation, balancing investment in the business and shareholder returns 8
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9 Q2 2026 Financials and Outlook
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P&L Summary (1) 10 SEGMENT ORGANIC NET SALES GROWTH • Connected Frontline + 7 . 5 % • Asset Visibility & Automation + 11 . 4 % REGIONAL ORGANIC NET SALES GROWTH • North America + 9 % • EMEA + 7 % • Asia Pacific + 13 % • Latin America + 15 % In millions, except per share data 2Q 26 2Q 25 Change Net Sales Organic Net Sales Growth $1,557 $1,293 +20.4% +9.2% Adjusted Gross Profit(2) Adjusted Gross Margin(2) $830 53.3% $619 47.9% +34.1% +540bps Adjusted Operating Expenses $419 $370 +13.2% Adjusted EBITDA(2) $431 $267 +61.4% Adjusted EBITDA Margin(2) 27.7% 20.6% +710bps Non-GAAP Diluted EPS(2) $6.35 $3.61 +75.9% (1) Refer to the appendix of this presentation for reconciliations of GAAP to non - GAAP financial measures (2) Recorded $73 million IEEPA tariff recoveries, with $14 million received in Q2
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(1) Refer to the appendix of this presentation for reconciliations of GAAP to non - GAAP financial measures Cash Flow & Balance Sheet (1) 11 Cash Flow: YTD 2Q 2026 • $361M Free cash flow, $73M higher YoY • $568M of share repurchases Strong Liquidity Position: 2Q 2026 • $157M cash & cash equivalents • $2.8B balance sheet debt • 1.9x net debt to adjusted EBITDA • $925M revolving credit facility capacity $871M share repurchases 4Q 2025 through 2Q 2026 supported by our strong balance sheet and cash flow
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12 • Memory cost increases approximately in - line with expectations • Price increases mitigating memory impact • Suppliers delivering on commitments, supporting our strong sales growth • Transitioning to memory types with greater availability • Leveraging alternative supply options Successfully Managing Through Memory Component Supply Constraints Leveraging our p roven track record of successfully n avigating supply c hain challenges Continuing to expect ~ $120M increase in FY26 memory component costs from prior year
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Outlook & Assumptions 13 3Q 2026 • Sales growth between 17% and 20% o ~ 10.5 point favorable impact from acquisitions (1) and FX • Adjusted EBITDA margin ~ 22% • Non - GAAP diluted EPS $4.70 - $4.90 FY 2026 • Sales growth between 14% and 16% o ~8 point favorable impact from acquisitions (1) and FX • Adjusted EBITDA margin between 23.5% and 24.0% (2) • Non - GAAP diluted EPS $20.75 - $21.25 (2) • Free cash flow at least $1B • Capital expenditures $70M - $80M • Depreciation $75M - $85M; Amortization $145M - $155M • Stock - based compensation expense $160M - $180M • Non - GAAP tax rate ~ 19% (1) Net impact to sales growth for 12 months following business acquisitions/ dispositions (2) Recorded $73 million IEEPA tariff recoveries in Q2; $14 million received in the quarter, $27 million received in July Raised full - year outlook for sales growth, adjusted EBITDA margin, non - GAAP diluted EPS, and free cash flow
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14 Closing Remarks Record performance in Q2, demonstrating the strength of our business and supporting an increased fiscal year 2026 outlook 01 Customers are leveraging Zebra's AI - powered solutions to improve productivity, visibility and decision - making 02 03 Executing on our strategic priorities to drive long - term profitable growth, build on our industry leadership and track record of innovation, and enhance financial strength and flexibility
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Q&A 15
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16 Appendix
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17 Use of Non - GAAP Financial Information This presentation contains certain non - GAAP financial measures . The Company presents non - GAAP financial measures, which exclude certain significant items, as a means to understand the performance of its ongoing operations and how management views the business . Management believes non - GAAP financial measures are useful to investors because such measures enable investors to perform meaningful comparisons of past and present operating results . Such non - GAAP financial measures may include : “adjusted EBITDA ; ” “adjusted EBITDA margin ; ” “adjusted gross margin ; ” “adjusted gross profit ; ” “adjusted net sales ; ” “adjusted operating expenses,” “EBITDA ; ” “free cash flow ; ” “free cash flow conversion ; ” “net debt ; ” “net debt to adjusted EBITDA ratio ; ” “non - GAAP diluted earnings per share ; ” “non - GAAP earnings per share ; ” “non - GAAP net income ; ” “organic net sales ; ” “organic net sales growth ; ” “segment organic net sales growth (decline) ; ” and “regional organic net sales growth (decline) . ” Please see the reconciliation of GAAP to non - GAAP financial measures tables and accompanying disclosures at the end of this presentation for more detailed information regarding non - GAAP financial measures herein, including the items reflected in adjusted net earnings calculations . The Company does not provide a reconciliation for non - GAAP estimates on a forward - looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort . This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted, and that would impact net income, the most directly comparable forward - looking GAAP financial measure . For the same reasons, the Company is unable to address the probable significance of the unavailable information . Forward - looking non - GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures . As a global company, Zebra's operating results reported in U . S . dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which the Company transacts change in value over time compared to the U . S . dollar ; accordingly, the Company presents certain organic growth financial information, which includes impacts of foreign currency translation, to provide a framework to assess how the Company’s businesses performed excluding the impact of foreign currency exchange rate fluctuations . Foreign currency impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U . S . dollar . This impact is calculated by translating the current period results at the currency exchange rates used in the comparable prior year period as well as removing realized cash flow hedge gains and losses from both the current and prior year periods . Non - GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the Company’s performance measures calculated in accordance with GAAP .
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18 GAAP to Non - GAAP Organic Net Sales Growth Reconciliation (Unaudited)
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GAAP to Non - GAAP Regional Organic Net Sales Growth Reconciliation (Unaudited) 19
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GAAP to Non - GAAP Gross Margin and Operating Income Reconciliation 20 ($ in millions) (Unaudited)
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GAAP to Non - GAAP Net Income Reconciliation 21 ($ in millions, except share data; Unaudited )
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GAAP to Non - GAAP EBITDA Reconciliation 22 ( $ in millions) (Unaudited )
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GAAP to Non - GAAP Free Cash Flow Reconciliation ($ in millions) (Unaudited ) 23
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GAAP to Non - GAAP Net Debt to Adjusted EBITDA Reconciliation ($ in millions) (Unaudited ) 24
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About Zebra Zebra (NASDAQ: ZBRA) provides the foundation for intelligent operations with an award-winning portfolio of connected frontline, asset visibility and automation solutions which empower our customers to deploy AI on the frontline. Organizations globally across retail, manufacturing, transportation, logistics, healthcare, and other industries rely on us to deliver outcomes today while driving innovation for what’s next. Together with our partners, we create new ways of working that improve productivity and empower organizations to be better every day. Learn more at www.zebra.com. www.zebra.com investors.zebra.com