ZBRA · 10-Q · 2026Q4 · Full report

Gross Margin Drivers

ZEBRA TECHNOLOGIES CORP · 2026-11-03 · Importance 55 · Surprise 32

Consolidated third-quarter gross margin fell 230 basis points year over year to 45.7%, primarily because of higher memory costs and unfavorable business mix, partly offset by foreign-currency favorability. Nine-month gross margin increased 110 basis points to 49.4%, reflecting IEEPA tariff recoveries recognized in the second quarter and favorable foreign currency, partly offset by memory costs. CF’s quarterly margin declined to 43.2% from 46.0%, while AVA’s declined to 49.9% from 50.7%; year-to-date margins rose to 47.7% for CF and 52.7% for AVA.

Key facts

• ZEBRA TECHNOLOGIES CORP third-quarter gross margin was 45.7%, compared with 48.0% in the prior-year quarter, a decrease of 230 basis points. source
• ZEBRA TECHNOLOGIES CORP year-to-date gross margin was 49.4%, compared with 48.3% in the prior year. source
• ZEBRA TECHNOLOGIES CORP AVA third-quarter gross-margin decline was primarily due to higher memory costs, partly offset by favorable foreign currency. source
• ZEBRA TECHNOLOGIES CORP attributed its third-quarter gross-margin decline primarily to higher memory costs and unfavorable business mix, partly offset by favorable foreign currency. source
• ZEBRA TECHNOLOGIES CORP CF third-quarter gross-margin decline was primarily due to higher memory costs and unfavorable business mix, partly offset by favorable foreign currency. source