Zebra Technologies (ZBRA) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Strategic focus and market evolution

• Emphasis on intelligent automation, asset visibility, and connected frontline workers to drive efficiency and effectiveness across customer environments.

• Key verticals include transportation logistics, retail, e-commerce, manufacturing, warehousing, healthcare, and government, with broad-based growth expected in 2026 and beyond.

• Customers continue to prioritize asset visibility, automation, and AI readiness, with increasing interest in Physical AI for frontline operations.

• Retail is focused on RFID adoption, inventory control, and self-service, while transportation logistics anticipates device refresh cycles and manufacturing growth is catching up.

• Government is emerging as a new vertical, especially for inventory management and RFID solutions.

Financial performance and outlook

• Achieved 6% organic growth and 17% EPS growth in 2025, despite challenging macro and trade environments.

• Entered 2026 with strong backlog and pipeline, maintaining confidence in guidance and customer demand.

• Seasonality shifted, with less year-end spending and more conservative customer behavior, but overall demand remained stable.

• Pricing increases due to tariffs and memory costs are being managed, with about half expected to be realized in 2026 and full coverage by 2027 through pricing and OpEx savings.

• Recent Supreme Court ruling on tariffs is seen as a positive, with lower rates and potential rebates benefiting cash flow.

Technology, innovation, and acquisitions

• Continued focus on organic R&D investment, complemented by strategic acquisitions such as Elo to expand the connected frontline pillar and global reach.

• Elo acquisition expected to deliver $25 million in synergies, with $10 million identified in cost savings and significant revenue synergy opportunities.

• Cross-sell strategies target existing customers and new geographies, leveraging combined product portfolios and sales teams.

• RFID remains a strong growth area, with expanding use cases in retail, logistics, grocery, and healthcare, and partnerships with leading chip and tag suppliers.

• Machine vision and AI are prioritized for future growth, with robotics investments shifting to more profitable and scalable opportunities.