ZBRA · 10-Q · 2026Q4 · Full report

Income Tax Rate Changes

ZEBRA TECHNOLOGIES CORP · 2026-11-03 · Importance 57 · Surprise 64

Zebra’s effective tax rate for the third quarter of 2026 was 17.2%, down from 36.5% in the third quarter of 2025. The nine-month effective rate fell to 18.2% from 24.5% year over year. Current-year rates were primarily reduced by U.S. tax credits and benefits related to foreign earnings subject to U.S. taxation, partly offset by U.S. state income taxes; the prior-year comparison included taxes related to foreign earnings under federal tax legislation.

Key facts

• Zebra’s effective tax rate for the three and nine months ended October 3, 2026, was 17.2% and 18.2%, respectively, versus 36.5% and 24.5% for the corresponding 2025 periods. source
• ZEBRA TECHNOLOGIES CORP third-quarter effective tax rate was 17.2%, compared with 36.5% in the prior-year quarter. source
• ZEBRA TECHNOLOGIES CORP year-to-date effective tax rate was 18.2%, compared with 24.5% in the prior year. source
• For the current year, Zebra attributed the variance from the 21% U.S. federal statutory tax rate primarily to U.S. tax credits and tax benefits related to foreign earnings subject to U.S. taxation, partially offset by U.S. state income taxes. source
• For the prior year, Zebra attributed the variance from the 21% U.S. federal statutory tax rate primarily to taxes related to foreign earnings subject to U.S. taxation resulting from federal tax legislation and U.S. state income taxes, partially offset by U.S. tax credits and release of certain Canadian valuation allowance reserves. source
• ZEBRA TECHNOLOGIES CORP attributed the third-quarter effective tax-rate decrease primarily to prior-year foreign earnings subject to U.S. taxation under federal tax legislation and lower current-year U.S. state income taxes. source