ZBRA – Quick Take – Takeaways from the Truist Securities Industrials & Services Conference

Research evidence excerpt

ZBRA – Quick Take – Takeaways from the Truist Securities Industrials & Services Conference

Truist Securities

Equity Research Report June 17, 2026

INDUSTRIALS: Industrial Tech Zebra Technologies Corporation (ZBRA)

ZBRA – Quick Take – Takeaways from the Truist Securities Jamie Cook, CFA

212-303-4116 Industrials & Services Conference

Jamie.Cook@truist.com

Kevin Wilson, CFA Increased memory costs a 2pt gross margin headwind but ZBRA expects to fully

212-590-0996 mitigate and is working closely with suppliers: ZBRA expects a ~2pt gross margin

Kevin.S.Wilson@truist.com headwind from memory for the full year (beginning in 2Q’26) and continues to expect

to fully mitigate the impact through a combination of targeted price actions (previously

Stephen Farkouh announced mobile computing price increases that went into effect in late March), savings

212-401-4459 from restructuring, volume leverage, and FX. ZBRA’s direct supplier relationships continue

Stephen.Farkouh@truist.com to position its cost base favorably relative to spot market rates. Management believes it

has line of sight to the supply it needs to support its FY guide (with 1H supply secured)

and is also pursuing alternate sourcing options, co-planning with suppliers, and transitioning

to higher-density memory components where capacity is expected to increase into 2027.

Current Price (Jun. 17, $232.98 ZBRA has seen no pull forward or fundamental change in demand related to price increases 2026)

(competitors are also raising price). ZBRA noted that its mobile computing products were

Stock Rating HOLD largely excluded from last year’s tariff-related surcharges and typically represent a relatively

Unchanged small share of customer capex, so customers may be more willing to accept price increases.