Zebra Technologies Corporation (ZBRA) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Zebra Technologies Corporation

Updated on October 2, 2026 · accounts published on August 4, 2026

A profitable business with widening margins, carrying more debt than its industry tolerates

Zebra Technologies trades at a P/E of 34.0 over the last 12 months, 14 % above its ten-year median of 29.8, while EPS fell 20 % in the same period.

• Is Zebra Technologies expensive or cheap? Its P/E is 14 % above its ten-year median, and it has traded cheaper than today 66 % of the time over the past decade.
• How is the business doing? Operating margin reached 16.1 % over the last 12 months, against a 10.7 % average for fiscal 2014-2025.
• How strong is the balance sheet? Net debt was 3.2 times EBITDA in fiscal 2025, above the 2.0× ceiling considered tolerable for telecom equipment makers.
• What to expect from the next earnings? Analysts expect EPS of $4.88 for the results due November 3, 2026, and 19 of 27 rate the stock a buy.
• Does it grow with real cash or by diluting shareholders? Stock-based pay is just 3.0 % of fiscal 2025 revenue, but revenue per share shrank 1.4 % a year over fiscal 2022-2025.

Is Zebra Technologies expensive or cheap?

Over the last 12 months Zebra Technologies trades at a P/E of 34.0. That is 14 % above its ten-year median of 29.8 and 8 % above the median of 31.5 across 317 companies in its sector. Over the decade its P/E ranged from 14.7 to 72.0. Cash flow paints a gentler picture. The free cash flow yield of 9.8 % is about twice the 4.8 % earnings yield, and EV/EBITDA of 17.3 sits below its five-year average of 20.7. The stock is up 38 % over 12 months and is 8 % below its 52-week high of $391.00.

How is the business doing?

Revenue grew 8.3 % over the last 12 months. The operating margin of 16.1 % beats both fiscal 2025's 14.8 % and the 10.7 % average of the last twelve fiscal years. Per-share profit moved the other way: EPS fell 19.6 % year on year, so the better margins have not yet reached shareholders. ROIC of 10.3 % is 2.3 points above the sector median of 8.0 %. Even so, ROIC topped 10 % in only 4 of the last 10 fiscal years, and in 2017 it fell to 1.9 %. Over the last 12 months ROE stands at 15.1 %.

How strong is the balance sheet?

In fiscal 2025 net debt was $55.08 per share ($57.54 of debt minus $2.46 of cash). That equals 15.2 % of the current share price. Measured against earnings power the load looks heavier: at 3.2× EBITDA it is above the 2.0× limit for its industry. Over the last 12 months debt to equity is 0.86. The current ratio of 0.52 means short-term liabilities are almost twice short-term assets. The Altman Z-score of 3.3 is still in the safe zone, and a Piotroski score of 5 out of 9 is middle of the road.

What to expect from the next earnings?

Zebra Technologies has beaten EPS estimates in 7 of the last 8 quarters. On August 4, 2026 it reported $6.35 against $4.36 expected, a 46 % surprise and the largest of those eight quarters. For November 3, 2026 analysts expect $4.88. Over the last 17 days the full-year 2026 EPS consensus barely moved, from $21.12 to $21.13 across 10 analysts, and the revenue consensus was just as steady. Of the 27 analysts who cover the company, 19 recommend buying, 8 recommend holding and none recommend selling.

Does it grow with real cash or by diluting shareholders?

Generic ratios miss a lot in technology, so investors watch growth, pricing power and dilution from stock-based pay. Zebra Technologies passes two of these tests. In fiscal 2025 stock-based pay was 3.0 % of revenue, well below the 10 % healthy line. Its 45.9 % gross margin clears the 35 % bar for telecom equipment. Cash conversion falls short: free cash flow was 15.4 % of revenue against a 20 % benchmark. Revenue per share shrank 1.4 % a year over fiscal 2022-2025, far from the 15 % the sector treats as healthy. So there is little dilution, but also little per-share growth.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.