Zebra Technologies Corporation

Q2 total company sales increased 20.4% year over year, or 9.2% on an organic basis, to more than $1.5 billion. Adjusted gross margin improved 540 basis points to 53.3%, adjusted EBITDA margin was 27.7%, and non-GAAP diluted EPS was $6.35, up 76% year over year. Connected Frontline grew nearly 26% including Elo, or 7.5% organically; Asset Visibility & Automation grew 11.4%. North America sales increased 9%, EMEA 7%, Asia Pacific 13%, and Latin America 15%. For the full year, Zebra now expects sales growth of 14% to 16%, adjusted EBITDA margin of 23.5% to 24%, non-GAAP EPS of $20.75 to $21.25, and free cash flow of at least $1 billion. Q3 sales are guided to growth of 17% to 20%, adjusted EBITDA margin of about 22%, and non-GAAP EPS of $4.70 to $4.90.

Bill Burns framed the quarter as evidence that Zebra’s integrated hardware, software, AI, RFID, and machine vision portfolio is resonating with customers trying to digitize and automate frontline operations. He emphasized broad-based demand, record results, and continued momentum into 2027, especially in Transportation & Logistics and manufacturing. His tone was confident and strategic, repeatedly linking execution, innovation, and capital discipline to long-term shareholder value.

Nathan Winters focused on the mechanics behind the beat and raise: stronger-than-expected memory supply, favorable pricing, and tariff recovery lifted results. He said adjusted gross margin rose to 53.3%, EBITDA margin to 27.7%, and that Zebra fully mitigated a $20 million memory cost increase in Q2; for the full year, the company still expects to fully mitigate about $120 million of memory headwind. He also cited $361 million of free cash flow year to date, leverage of 1.9x, $925 million of credit capacity, and $568 million of stock repurchases in the first half, with an additional $150 million assumed in the back half.

Analysts focused on memory supply, the sustainability of the raised outlook, and whether Q4 and 2027 demand could be constrained by components. Management said unconstrained demand is near the high end of its guide, but the midpoint reflects supply limits; it also said the team is qualifying 10 new suppliers and aims for 5 to 7 qualified suppliers for each primary memory type. Questions also centered on pricing, with management saying it proactively embedded higher pricing into Q2 quotes and expects price realization to continue into the back half and into 2027.