Zebra Raises Revenue Forecast on Record Sales
The mobile computing maker lifted its full-year 2026 growth outlook to 17% after reporting record third-quarter sales.
Updated on Nov. 4, 2026 in Corporate Finance
Zebra raised its full-year 2026 revenue growth guidance to 17% during its third-quarter earnings call on November 3, 2026, after recording record quarterly sales. The company raised mobile computing product prices by approximately 15% in October to offset rising memory chip costs.
Why it matters
Memory chip price increases created a $145 million full-year cost headwind for Zebra, up from an earlier estimate of $120 million. Price increases are the company's response as it works to protect margins while demand for its hardware remains strong.
Zebra's memory cost headwind rose by $25 million to $145 million for the full year, while the company has returned $640 million to shareholders through share repurchases year to date. The company has not disclosed how much of the cost increase will be offset by the October price increases beyond its stated dollar-for-dollar pass-through plan.
The players
Zebra Technologies
Zebra Technologies is a Lincolnshire, Illinois-based maker of barcode scanners, mobile computers and enterprise data-capture hardware used in retail, logistics and manufacturing.
The details
Zebra said it is raising prices to offset component costs on a dollar-for-dollar basis going into 2027, and it is qualifying five memory-component suppliers. The company also expanded inventory by $90 million and acquired Elo Touch one year before the earnings call.
Timeline
October 2026: Zebra raised mobile computing product prices by approximately 15%.
November 3, 2026: Zebra held its third-quarter earnings call and raised its full-year guidance.
2027: Management expects revenue near the top of its long-term guidance range and expects two additional memory-component suppliers to be qualified.
Market Landscape
Zebra's pass-through of memory costs through price increases reflects a broader pattern among hardware makers facing the memory chip price cycle tied to AI data center demand. Frontline workers upgrading handheld computers to run AI applications on the device itself is creating multiyear hardware demand that supports pricing power across the sector.
Zebra's raised guidance and $640 million in share repurchases year to date give shareholders a clearer view of the company's cash return plans. The memory cost headwind and price increases could affect the company's margins into 2027, which matters for investors weighing the stock.
The takeaway
Companies facing component cost pressure are increasingly passing costs through to customers while protecting demand. For investors, watching whether price increases fully offset memory costs will show how durable Zebra's margins are.
Further reading
Explore more on Corporate Finance for the broader context of how companies manage costs and capital returns.
Source note: This article includes information reported by The Motley Fool.
