Full Transcript: Zebra Technologies Q2 2026 Earnings Call

Zebra Technologies (NASDAQ: ZBRA ) released second-quarter financial results and hosted an earnings call on Tuesday. Read the complete transcript below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

2% on an organic basis. 7%, boosted by $73 million in tariff recovery. The company raised its full-year guidance due to positive demand trends and successful memory supply management. 5% to 24%.

Strategic initiatives included leveraging AI-powered solutions across industries, strong double-digit growth in retail, manufacturing, and healthcare, and significant progress in integrating Elo Touch to enhance self-service and point-of-sale offerings. Operational highlights include strong performance in North America and robust growth in Asia Pacific and Latin America. EMEA showed resilience despite geopolitical challenges. Management emphasized the company's ability to mitigate memory supply constraints and continue delivering strong results, highlighting strategic investments in RFID, machine vision, and AI.

Capital allocation included $568 million in share repurchases in the first half of 2026, with plans for an additional $150 million in the second half, reflecting confidence in long-term value creation. Full Transcript OPERATOR Good day and welcome to the second quarter 2026 Zebra Technologies earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded.

I would now like to turn the conference over to Mike Steele, Vice President of Investor Relations. Mike Steele, Vice President of Investor Relations Good morning and welcome to Zebra Technologies second quarter earnings conference call. com and will be archived there for at least one year. Our forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties.

Actual results could differ materially and we refer you to the risk factors discussed in our SEC filings. During this call we will reference non-GAAP financial measures as we describe business performance, with reconciliation shown at the end of this slide presentation and in our earnings press release. Throughout this presentation, unless otherwise indicated, our references to sales performance are year-on-year on a constant currency basis and exclude results from business acquisitions and dispositions for 12 months. This presentation will include prepared remarks from Bill Burns, our Chief Executive Officer, and Nathan Winters, our Chief Financial Officer.

Bill will begin with perspectives on our second quarter results, our value proposition, and strategic priorities. Nathan will then provide additional detail on our financial results and discuss our outlook, followed by Bill's closing remarks. Then Bill and Nathan will take your questions. Now let's turn to slide three as I hand it over to Bill.

Bill Burns, Chief Executive Officer Thank you, Mike. Good morning everyone and thank you for joining us. There are three key points I'd like to focus on today. First, our team executed well, driving record results with broad-based growth and significantly increased profitability.

This strong performance, together with the continued momentum we are seeing across our business, supports our meaningful raise to the full year outlook. Second, our results reflect Zebra's unique value proposition. Customers are investing to digitize and automate frontline operations and our integrated portfolio is central to their progress. Zebra's AI-powered solutions are helping customers globally to improve outcomes, to enhance productivity, visibility, and real-time decision making.

Third, we are executing on our clear strategy to create long-term shareholder value by driving sustainable growth, building on our industry leadership and track record of innovation, and enhancing our financial strength and flexibility. With that, let's turn to our second quarter results. Turning to slide 4, we delivered results exceeding our outlook, driven by our team's execution and positive demand trends across our portfolio. We had strong performance across all segments and regions, with double-digit growth in our retail, manufacturing, and healthcare end markets.

Elo Touch contributed strong profitable growth, with robust customer interest in our combined portfolio of solutions as we drive synergies with the acquisition. 35, a 76% increase over the prior year. Excluding the benefits of tariff recovery, we expanded adjusted EBITDA margin by 2 points, driven by better-than-expected gross margins as well as operating expense leverage benefiting from our productivity initiatives. These results demonstrate both the durability of demand for our solutions and our ability to convert this demand into profitable growth.

Our strong performance and financial position also supports our disciplined approach to capital allocation. We repurchased more than $560 mil