ZBRA · 8-K · 20260804PR052158

Gross Margin Drivers

ZEBRA TECHNOLOGIES CORP · 2026-08-04 · Importance 72 · Surprise 74 · No source text

Second-quarter gross profit increased 33.9% to $825 million from $616 million. Gross margin expanded 540 basis points to 53.0% from 47.6%. The company attributed the margin expansion primarily to $73 million of IEEPA tariff recoveries recorded or receivable, including $14 million received during the quarter, and favorable foreign-currency exchange. Adjusted gross margin also increased 540 basis points to 53.3% from 47.9%.

Key facts

• Gross profit for the second quarter was $825 million compared to $616 million in the prior year. source
• Adjusted EBITDA for the second quarter was $431 million, or 27.7% of adjusted net sales, compared to $267 million, or 20.6% of adjusted net sales in the prior year. source
• Cost of sales for tangible products in the three months ended July 4, 2026 was $615 million and for services and software was $117 million, totaling $732 million. source
• Adjusted EBITDA for the six months ended July 4, 2026 was $778 million and adjusted EBITDA margin was 25.5%. source
• Gross margin increased to 53.0% in the second quarter compared to 47.6% in the prior year, an increase of 540 basis points. source
• Adjusted gross margin was 53.3% in the second quarter compared to 47.9% in the prior year, an increase of 540 basis points. source
• Reported gross margin by segment for the three months ended July 4, 2026: CF gross margin 51.2% and AVA gross margin 56.3%, consolidated 53.0%. source

Impact estimates