Zebra (ZBRA): Buy, Sell, or Hold Post Q3 Earnings?

Stock Story

Over the past six months, Zebra’s shares (currently trading at $262.62) have posted a disappointing 17.8% loss, well below the S&P 500’s 11.5% gain. This might have investors contemplating their next move.

Is there a buying opportunity in Zebra, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.

Why Is Zebra Not Exciting?

Even though the stock has become cheaper, we're sitting this one out for now. Here are three reasons why ZBRA doesn't excite us and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Zebra’s 3.9% annualized revenue growth over the last five years was tepid. This fell short of our benchmark for the business services sector.

2. Slow Organic Growth Suggests Waning Demand In Core Business

We can better understand Specialized Technology companies by analyzing their organic revenue. This metric gives visibility into Zebra’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.

Over the last two years, Zebra’s organic revenue averaged 4.4% year-on-year growth. This performance slightly lagged the sector and suggests it may need to improve its products, pricing, or go-to-market strategy, which can add an extra layer of complexity to its operations.

3. Free Cash Flow Margin Dropping

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, Zebra’s margin dropped by 7 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Zebra’s free cash flow margin for the trailing 12 months was 15.1%.

Zebra Trailing 12-Month Free Cash Flow Margin

Final Judgment

Zebra’s business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 15.2× forward P/E (or $262.62 per share). Beauty is in the eye of the beholder, but our analysis shows the upside isn’t great compared to the potential downside. We're pretty confident there are more exciting stocks to buy at the moment. We’d recommend looking at the Amazon and PayPal of Latin America.

Risk Warnings and Disclaimers

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Zebra Technologies Currently Down 10 Days Straight, On Pace for Longest Losing Streak Since August 2011 — Data Talk

Dow Jones Newswires

Zebra Technologies

-1.70%

Zebra Technologies Corporation Class A (ZBRA) is currently at $243.91, down $1.99 or 0.81%

Would be lowest close since Nov. 24, 2025, when it closed at $242.45
On pace for largest percent decrease since Dec. 23, 2025, when it fell 1.05%
Currently down 10 consecutive days; down 10.83% over this period
Longest losing streak since Aug. 8, 2011, when it fell for 11 straight trading days
Worst 10 day stretch since the 10 days ending Nov. 20, 2025, when it fell 11.56%
Down 3.08% this week; worst weekly performance since the week ending Dec. 19, 2025, when it fell 6.24%
Down 3.5% month-to-date
Down 36.85% year-to-date; on pace for worst year since 2022, when it fell 56.92%
Down 60.31% from its all-time closing high of $614.55 on Dec. 10, 2021
Down 37.31% from 52 weeks ago (Dec. 27, 2024), when it closed at $389.07
Down 42.08% from its 52-week closing high of $421.11 on Jan. 23, 2025
Up 14.22% from its 52-week closing low of $213.54 on April 8, 2025
Traded as low as $243.69; lowest intraday level since Nov. 25, 2025, when it hit $242.70
Down 0.9% at today's intraday low

All data as of 9:50:44 AM ET

Source: Dow Jones Market Data, FactSet

Risk Warnings and Disclaimers

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Zebra Technologies Currently Down Nine Consecutive Days, on Track for Longest Losing Streak Since August 2011 — Data Talk

Dow Jones Newswires

Zebra Technologies

-1.70%

Zebra Technologies Corporation Class A (ZBRA) is currently at $246.28, down $0.48 or 0.2%

Would be lowest close since Nov. 24, 2025, when it closed at $242.45
On pace for largest percent decrease since Dec. 23, 2025, when it fell 1.05%
Currently down nine consecutive days; down 9.97% over this period
Longest losing streak since Aug. 8, 2011, when it fell for 11 straight trading days
Worst nine day stretch since the nine days ending Nov. 20, 2025, when it fell 12%
Down 2.56% month-to-date
Down 36.23% year-to-date; on pace for worst year since 2022, when it fell 56.92%
Down 59.93% from its all-time closing high of $614.55 on Dec. 10, 2021
Down 37.72% from 52 weeks ago (Dec. 24, 2024), when it closed at $395.44
Down 41.52% from its 52-week closing high of $421.11 on Jan. 23, 2025
Up 15.33% from its 52-week closing low of $213.54 on April 8, 2025
Traded as low as $244.44; lowest intraday level since Nov. 25, 2025, when it hit $242.70
Down 0.94% at today's intraday low

All data as of 11:28:52 AM ET

Source: Dow Jones Market Data, FactSet

Risk Warnings and Disclaimers

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Zebra Technologies Currently Down Eight Consecutive Days, on Pace for Longest Losing Streak Since April 2024 — Data Talk

Dow Jones Newswires

Zebra Technologies

-1.70%

Zebra Technologies Corporation Class A (ZBRA) is currently at $246.55, down $2.83 or 1.13%

Would be lowest close since Nov. 24, 2025, when it closed at $242.45
On pace for largest percent decrease since Dec. 17, 2025, when it fell 2.64%
Currently down eight consecutive days; down 9.87% over this period
Longest losing streak since April 19, 2024, when it fell for eight straight trading days
Worst eight day stretch since the eight days ending Nov. 20, 2025, when it fell 12.37%
Down 2.45% month-to-date
Down 36.16% year-to-date; on pace for worst year since 2022, when it fell 56.92%
Down 59.88% from its all-time closing high of $614.55 on Dec. 10, 2021
Down 37.65% from 52 weeks ago (Dec. 24, 2024), when it closed at $395.44
Down 41.45% from its 52-week closing high of $421.11 on Jan. 23, 2025
Up 15.46% from its 52-week closing low of $213.54 on April 8, 2025
Traded as low as $246.42; lowest intraday level since Nov. 25, 2025, when it hit $242.70
Down 1.19% at today's intraday low

All data as of 10:08:44 AM ET

Source: Dow Jones Market Data, FactSet

Risk Warnings and Disclaimers

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Zebra Is Maintained at Hold by Truist Securities

Dow Jones Newswires

Zebra Technologies

-1.70%

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A Look Back at Specialized Technology Stocks’ Q3 Earnings: OSI Systems (NASDAQ:OSIS) Vs The Rest Of The Pack

Stock Story

Cognex

-3.04%

Napco Security Technologies

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at OSI Systems and its peers.

Companies in this sector, especially if they invest wisely, could see demand tailwinds as the world moves towards more IoT (Internet of Things), automation, and analytics. Enterprises across most industries will balk at taking these journeys solo and will enlist companies with expertise and scale in these areas. However, headwinds could include rising competition from larger technology firms, as digitization lowers barriers to entry in the space. Additionally, companies in the space will likely face evolving regulatory scrutiny over data privacy, particularly for surveillance and security technologies. This could make companies have to continually pivot and invest.

The 8 specialized technology stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.8% since the latest earnings results.

OSI Systems

With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.

OSI Systems reported revenues of $384.6 million, up 11.8% year on year. This print exceeded analysts’ expectations by 4.9%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and full-year revenue guidance slightly topping analysts’ expectations.

The stock is up 7.6% since reporting and currently trades at $262.42.

Read why we think that OSI Systems is one of the best specialized technology stocks, our full report is free.

Best Q3: Napco

Protecting everything from schools to government facilities since 1969, Napco Security Technologies manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.

Napco reported revenues of $49.17 million, up 11.7% year on year, outperforming analysts’ expectations by 4.8%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

The market seems unhappy with the results as the stock is down 6% since reporting. It currently trades at $41.51.

Is now the time to buy Napco? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Cognex

Founded in 1981 when computer vision was in its infancy, Cognex develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products.

Cognex reported revenues of $276.9 million, up 18% year on year, exceeding analysts’ expectations by 5.2%. It was a satisfactory quarter as it also posted an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ full-year EPS guidance estimates.

As expected, the stock is down 26.3% since the results and currently trades at $34.95.

Read our full analysis of Cognex’s results here.

Mirion

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Mirion reported revenues of $223.1 million, up 7.9% year on year. This number was in line with analysts’ expectations. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

The stock is down 3.3% since reporting and currently trades at $24.35.

Read our full, actionable report on Mirion here, it’s free for active Edge members.

Zebra

Taking its name from the black and white stripes of barcodes, Zebra Technologies provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Zebra reported revenues of $1.32 billion, up 5.2% year on year. This result met analysts’ expectations. It was a strong quarter as it also put up revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Zebra had the weakest performance against analyst estimates among its peers. The stock is down 15.4% since reporting and currently trades at $262.81.

Read our full, actionable report on Zebra here, it’s free for active Edge members.

Risk Warnings and Disclaimers

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Zebra Technologies Plans to Dispose, Exit From Robotics Business

Dow Jones Newswires

Zebra Technologies

-1.70%

By Adriano Marchese

Zebra Technologies plans to either dispose of, or exit altogether its robotics automation solutions business, according to recent filings.

The company, which makes barcode scanners, printers, RFID, and mobile computing solutions for tracking and managing assets said Monday that the move is part of its effort to realign resources to efficiently support its strategic priorities.

Zebra expects to incur up to $80 million of in pretax charges, which include noncash asset impairment charges of about $60 million in the fourth quarter of fiscal year 2025.

Once disposed or exited from the business, Zebra said it expects to generate cost-savings of at least $20 million a year, pretax.

Write to Adriano Marchese at adriano.marchese@wsj.com

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