ZBRA · 10-Q · 2026Q4 · Full report

Tariff Refund and Gross Margin

ZEBRA TECHNOLOGIES CORP · 2026-11-03 · Importance 59 · Surprise 60

Following the February 20, 2026 U.S. Supreme Court ruling that IEEPA did not authorize the executive branch to impose tariffs, Zebra sought refunds of previously paid import tariffs. In the second quarter of 2026, the company deemed refunds of all previously paid IEEPA tariffs probable and recognized a benefit in cost of sales, including benefits attributed to both CF and AVA. As of October 3, 2026, Zebra had received part of the refund in cash and recorded another portion in accounts receivable; the filing’s extracted text does not show the dollar amounts.

Key facts

• Zebra sought refunds of previously paid IEEPA tariffs and deemed refund of all previously paid import tariffs probable in the second quarter of 2026. source
• Zebra recognized a benefit within Cost of Sales in the second quarter of 2026 for probable refunds of previously paid import tariffs; the amount is omitted in the supplied text, including the CF and AVA allocations. source
• ZEBRA TECHNOLOGIES CORP recognized IEEPA tariff recoveries in the second quarter of 2026, which favorably affected year-to-date gross margin. source
• ZEBRA TECHNOLOGIES CORP CF year-to-date gross-margin increase reflected second-quarter IEEPA tariff recoveries and favorable foreign currency, partly offset by higher memory costs and unfavorable business mix. source
• ZEBRA TECHNOLOGIES CORP AVA year-to-date gross-margin increase reflected second-quarter IEEPA tariff recoveries, business mix, and favorable foreign currency, partly offset by higher memory costs. source
• As of October 3, 2026, Zebra had received cash from tariff refunds and had an additional amount reflected in Accounts Receivable, net; both amounts are omitted in the supplied text. source