Zebra Technologies has posted a strong first quarter for 2026, reporting net sales of $1,495 million, a 14.3% increase compared to the same period last year. The results underline the continued demand for RFID-enabled enterprise solutions across supply chain, retail and manufacturing sectors.
The company’s two core business segments both delivered solid organic growth. The Connected Frontline (CF) segment brought in $825 million, up from $684 million in Q1 2025, driven by ongoing adoption of mobile computing and RFID handheld devices by frontline workers. The Asset Visibility and Automation (AVA) segment generated $670 million, compared to $624 million a year earlier, reflecting growing investment in fixed RFID readers, barcode scanning infrastructure and automation technology.
Consolidated organic growth came in at 4.3%, with the CF segment growing 3.8% and AVA at 4.8%. The AVA segment’s performance is particularly notable given Zebra’s expanding portfolio of RAIN RFID readers and UHF solutions that are seeing increased deployment in retail inventory management and logistics operations.
Profitability metrics were equally encouraging. Net income reached $135 million, or $2.72 per diluted share, while non-GAAP diluted earnings per share climbed to $4.75 from $4.02 in the prior year quarter. Adjusted EBITDA hit $347 million, representing a 23.2% margin. Gross margin ticked up to 49.6% from 49.3%, with the adjusted figure reaching 50.4%.
CEO Bill Burns highlighted the durability of demand for Zebra’s innovative technology portfolio, noting that the company achieved organic growth across all segments and regions. CFO Nathan Winters pointed to the company’s focus on profitable growth, operating discipline and margin expansion as key drivers behind the results.
On the cash flow front, Zebra generated $176 million in operating cash flow and $163 million in free cash flow during the quarter. The company also returned $300 million to shareholders through share repurchases, signalling confidence in its forward outlook.
Looking ahead, Zebra expects Q2 2026 sales growth of 14% to 17%, with an EBITDA margin slightly above 21% and non-GAAP EPS of $4.20 to $4.50. For the full year 2026, the company is guiding for sales growth of 10% to 14%, an EBITDA margin of approximately 22%, non-GAAP EPS of $18.30 to $18.70, and free cash flow exceeding $900 million.
These results reinforce Zebra’s position as a leading provider of enterprise RFID and data capture technology. As retailers, logistics providers and manufacturers continue to invest in UHF and RAIN RFID solutions for inventory accuracy and supply chain visibility, Zebra remains well placed to benefit from these long-term technology adoption trends.