Zebra Technologies shares fell 8.62% in pre-market trading on Tuesday after the company issued fourth-quarter earnings guidance that disappointed investors, despite beating analyst expectations for the third quarter.
The workflow automation solutions provider reported adjusted earnings per share of $4.95, compared with the $4.89 consensus estimate. Revenue reached $1.61 billion, above the $1.57 billion forecast and up 22.3% from $1.32 billion a year earlier.
For the fourth quarter, Zebra expects adjusted EPS of $5.00 to $5.40. The midpoint of $5.20 is just below the $5.21 analyst consensus. The company forecast sales growth of 10% to 14% year over year, including an estimated 150-basis-point benefit from foreign currency, and an adjusted EBITDA margin of about 22%.
Third-quarter net income rose to $164 million, or $3.43 per diluted share, from $101 million, or $1.97 per diluted share, in the year-earlier period. Adjusted EBITDA was $349 million, equal to 21.6% of adjusted net sales, matching the prior-year margin.
Chief Executive Officer Bill Burns said the company delivered another record quarter, citing broad-based demand and Elo Touch’s contribution to double-digit growth as customers prioritize automating frontline operations.
Zebra generated $661 million in free cash flow during the first nine months of 2026 and expects at least $1 billion for the full year. It repurchased $643 million of shares over the nine-month period.
Sources: Investing.com News.