ZBRA · 10-Q · 2026Q3 · Full report

Operating Income and Margins

ZEBRA TECHNOLOGIES CORP · 2026-08-04 · Importance 69 · Surprise 64 · Matches filing data

Second-quarter operating income increased $138 million, or 75.4%, to $321 million from $183 million. Six-month operating income increased $158 million, or 41.8%, to $536 million from $378 million. Connected Frontline operating income increased 54.2% in the quarter and 37.6% year to date, while Asset Visibility & Automation operating income increased 79.4% and 45.0%, respectively. Consolidated profitability benefited from higher sales, tariff recoveries, foreign currency, and improved gross margins despite higher operating expenses.

Key facts

• Operating income was $536 million for the current year compared to $378 million in the prior year. source
• Operating income for AVA for the current year increased by 79.4% compared to the prior year. source
• Operating income for CF increased 54.2% in the current year compared to the prior year. source
• Operating income was $321 million in the current quarter compared to $183 million in the prior year second quarter. source
• Net income was $233 million, or $4.85 per diluted share in the current quarter, compared to net income of $112 million, or $2.19 per diluted share in the prior year second quarter. source
• The CODM reviews operating income to assess segment profitability monthly as well as part of the Company’s budget and forecasting process. source
• The Company’s effective tax rates for the three months ended July 4, 2026 and June 28, 2025 were 18.2% and 18.8%, respectively. source
• The Company’s effective tax rates for the six months ended July 4, 2026 and June 28, 2025 were 18.6% and 18.2%, respectively. source

Impact estimates