ZBRA · 10-Q · 2026Q3 · Full report
Trade Policy and Tariffs
ZEBRA TECHNOLOGIES CORP · 2026-08-04 · Importance 59 · Surprise 60 · In source text
On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) did not authorize the executive branch to impose tariffs, invalidating certain import tariffs enacted in 2025. Zebra began seeking refunds through the U.S. Customs and Border Protection process and, in the second quarter of 2026, deemed recovery of all previously paid IEEPA tariffs probable. The company recognized an approximately $[amount] million benefit in Cost of Sales, with $[amount] million attributed to Connected Frontline and $[amount] million to Asset Visibility & Automation; it had received $[amount] million in cash by July 4, 2026, recorded $[amount] million in receivables, and received an additional $[amount] million through July 31, 2026.
Key facts
- The Company is in the process of seeking the refund of its approximately $73 million of previously paid import tariffs in accordance with the process defined by the U.S. Customs and Border Protection. source
- We recognized a $73 million pretax benefit from the expected refund of previously paid import tariffs, with $14 million of cash received in the second quarter. source
- During the second quarter of 2026, the Company recognized the benefit of approximately $73 million in expected refunds within Cost of Sales, including $46 million attributed to the CF segment and $27 million attributed to the AVA segment. source
- On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the executive branch to impose tariffs, which invalidated certain import tariffs enacted in 2025, and the matter was remanded to the Court of International Trade and CBP for administration of refunds. source
- The Company commenced the process of seeking refunds from CBP in accordance with the process prescribed by CBP following the IEEPA ruling. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +4.7% | We recognized a $73 million pretax benefit from the expected refund of previously paid import tariffs, with $14 million of cash received… |
| cash | positive | realized | +0.2% | We recognized a $73 million pretax benefit from the expected refund of previously paid import tariffs, with $14 million of cash received… |
| cash | positive | contingent | — | On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the… |
| cash | positive | probable | — | The Company commenced the process of seeking refunds from CBP in accordance with the process prescribed by CBP following the IEEPA ruling. |