Will It Be Believed This Time? We Think So

Research evidence excerpt

Will It Be Believed This Time? We Think So

Diversified Industrials, Automation & Robotics

Zebra Technologies

TD SECURITIES (USA) LLC QUICK TAKE: EARNINGS UPDATE

May 12, 2026

Price: $216.96 (05/11/2026) Will It Be Believed This Time? We Think So

Price Target: $400.00

BUY (1)

ESG SCORE: 67/100

Joe Giordano, CFA THE TD COWEN INSIGHT

646 562 1405

Solid 1Q26 beat with revenue and EPS above expectations (margins and AVA segment growth

joe.giordano@tdsecurities.com

driving). Mgmt. increased FY sales and EPS guidance, while implied 2H (vs. 1H) growth doesn't

Michael Anastasiou look aggressive. Implied 2H margin guidance of ~22% likely better than most feared given

646 562 1437 pervasive memory concerns. We expected a positive response, but more importantly, for it to

michael.anastasiou@tdsecurities.com

hold this time.

Chris Grenga, CFA

646 562 1387 Key Takeaways

chris.grenga@tdsecurities.com

■In our Look Ahead (HERE) we mentioned reads from this season were generally constructive

Key Data into the print, combined with trough valuation made us incrementally more constructive.

Symbol NASDAQ: ZBRA ZBRA again delivered on commitments despite investor concerns and raised FY26 guide

Market Cap $10.5B looks conservative for 2H with implied 2H growth (vs. 1H) of LSD and implied 2H EBITDA

margins of 21.9% is a touch above our model (despite persistent memory inflation).

Commentary that memory is in line with prior guide and they have line of sight to deliver

guide is critical.

■Notable outperformance in manufacturing, LATAM, and APAC. Implied FY organic guidance

range was increased. We look to the call for additional color on data capture solutions,

which could help inform AI models (more detail we dove into from ZBRA 2024 Innovation

Day HERE).

■Adj.