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12:30
Aug 04 ◎

ZBRA FY2026 Q2 Watch

Zebra Technologies Corporation (ZBRA) FY2026 Q2 Earnings Call

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Nathan Winters

Management is confident in mitigating the memory supply and cost headwinds, leading to a raised full-year guidance. The strong demand signals suggest that results could come in at the high end of the range if supply allows.

"Our full year guide continues to reflect full mitigation of the approximately $120 million memory cost headwind. We've been driving this through targeted price increases and other direct memory initiatives, as well as net savings from our"

ZBRA WATCH

Nathan Winters

Zebra's Q2 results exceeded guidance because it was able to secure more memory supply than expected, but its guidance for Q3 and Q4 is still based on the potential for continued supply constraints, not on the strong demand signals. — Memory availability, not end-demand, is the primary variable capping Zebra's sales growth in the near term, indicating the DRAM market remains supply-constrained.

"Our guide is really at the midpoint of our guide that really factors in the potential supply constraints that we'd expect to see in second half."

SNDK WATCH HXCL WATCH

Nathan Winters

Zebra was executing price increases on deals before its official announcement, allowing it to realize price benefits in Q2 ahead of schedule and increasing its expected full-year pricing mitigation from memory costs to $90 million from a prior $60 million. — Zebra's successful pricing power indicates that memory suppliers have significant leverage to raise prices, and Zebra is passing those costs through to its own customers, impacting demand elasticity.

"Our guide is really at the midpoint of our guide that really factors in the potential supply constraints that we'd expect to see in second half."

MU WATCH

HIGH

12:30
May 12 ◎

ZBRA FY2026 Q1 Watch

Zebra Technologies Corporation (ZBRA) FY2026 Q1 Earnings Call

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Nathan Winters

No change seen in the pipeline due to the pending Brady/Honeywell transaction, indicating competitive dynamics are stable for now.

"we haven't seen any changes related to the second half. As Bill mentioned earlier, the project funnel remains strong"

BRC WATCH HON WATCH

Bill Burns

Qualcomm is named as a key ecosystem partner for Zebra's solutions and supply chain.

"whether it's our relationship with Qualcomm or Google or the memory suppliers in this case most recently"

QCOM WATCH

Bill Burns

Google is named as a key ecosystem partner for Zebra's solutions.

"whether it's our relationship with Qualcomm or Google or the memory suppliers in this case most recently"

GOOGL WATCH

Bill Burns

Management raised the full-year outlook, citing durable demand, strong execution, and confidence in mitigating memory cost headwinds, signaling a positive trajectory.

"We delivered a strong quarter and are moving forward with confidence and our increased outlook for the full year."

ZBRA WATCH

Nathan Winters

Despite the memory shortage and cost inflation, management has 'line of sight' to fully mitigate the 2-point margin headwind for the year, with the cost trajectory in line with prior guidance and less severe than spot market rates. — This suggests memory suppliers are prioritizing long-term direct customers over spot-market buyers, potentially shielding Zebra and similar partners from the worst of the price spike.

"we purchase the vast majority of our memory direct, which has been favorable to the spot market rates that a lot of folks have visibility to"

SNDK WATCH MU WATCH

Nathan Winters

Freight costs, which have risen 20-30% across various lanes, are actually a manageable cost headwind as they represent less than 2% of revenue and have been incorporated into the 2026 guidance. — This indicates freight price increases are being passed through or absorbed without a significant impact on margins, showing pricing power in the supply chain despite logistics cost inflation.

"transportation or freight costs are less than 2% of revenue. So you know, right now it's in a range that we can manage and use other levers to offset."

FDX WATCH UPS WATCH

HIGH

13:30
Feb 12 ◎

ZBRA FY2025 Q4 Watch

Zebra Technologies Corporation (ZBRA) FY2025 Q4 Earnings Call

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Nathan Winters

Zebra guides to a strong 2026 with 9-13% sales growth, driving by a robust pipeline and new product momentum, while mitigating memory cost headwinds.

"For the full year, we expect sales growth to be 9% and 13%, which reflects a strong pipeline of opportunities"

ZBRA WATCH

Bill Burns

Zebra is collaborating with Google on its operating system to ensure AI model support, a sign of an ongoing partnership.

"working with our partners in Qualcomm and certainly Google on the OS to make sure that they can support AI models on the device"

GOOGL WATCH

Bill Burns

Zebra won a machine vision contract with a major parcel delivery company, likely a competitor to Amazon Logistics, indicating continued demand in this segment.

"A large European parcel delivery company has selected Zebra's machine vision platform"

AMZN WATCH

Nathan Winters

Zebra is facing a ~2-point gross margin headwind from memory price increases starting Q2, which it plans to fully offset through price increases and supply chain actions. — Indicates significant memory supply constraint and pricing power in the industry, impacting companies like Micron, and shows Zebra's confidence in passing costs to customers.

"We are currently facing industry-wide price increases for memory components beginning in Q2. Our full year guide reflects us fully mitigating this approximately two-point headwind"

MU WATCH

Bill Burns

"working with our partners in Qualcomm and certainly Google on the OS to make sure that they can support AI models on the device"

QCOM WATCH

HIGH

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