Zebra Technologies (ZBRA) Could Be 13% Overvalued Following Strong Q2 Results

Zebra Technologies (ZBRA) moved sharply after reporting second quarter 2026 results that exceeded earnings and revenue expectations. Management also raised full year guidance and highlighted strong demand for automation and connected frontline solutions.

See our latest analysis for Zebra Technologies.

After this earnings surprise and guidance upgrade, Zebra Technologies has moved sharply higher, with a 7 day share price return of 30.39% and a 90 day share price return of 61.40%. The 1 year total shareholder return of 19.68% and 3 year total shareholder return of 43.08% suggest momentum has picked up recently, following a weaker 5 year total shareholder return that declined 35.21%.

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After this sharp move, Zebra Technologies still trades below both analyst targets and one estimate of intrinsic value. The real issue now is whether that discount reflects lingering caution or a genuine mispricing.

Most Popular Narrative: 13.4% Overvalued

The most followed narrative currently places Zebra Technologies fair value at $325.31, compared with the last close of $368.99, which implies a premium that recent price strength has widened.

The analysts have a consensus price target of $325.31 for Zebra Technologies based on their expectations of its future earnings growth, profit margins and other risk factors.

However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $400.0, and the most bearish reporting a price target of just $256.0.

Read the complete narrative.

Want to understand why this narrative still sees upside from older price levels, yet flags the stock as overvalued today? The story combines solid growth, margin repair, and a defined view on what multiple Zebra Technologies might deserve in a few years. It is worth examining which earnings path and discount rate are most influential in determining that fair value.

Result: Fair Value of $325.31 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Zebra Technologies still faces meaningful risks, including exposure to tariffs and integration challenges from deals like Elo, which could pressure margins and cash flow.

Find out about the key risks to this Zebra Technologies narrative.

Another View on Zebra Technologies Valuation

The analyst narrative frames Zebra Technologies as 13.4% overvalued at $368.99 versus a fair value of $325.31. Yet on earnings multiples, the picture is different. The stock trades on a 32.4x P/E, slightly above its fair ratio of 30.8x, but well below a 70.6x peer average. That gap points to valuation risk if sentiment cools, but also some relative support compared with higher priced peers. Which signal do you treat as more important right now?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Reading this, does Zebra Technologies look more promising or more concerning to you right now? Act while the details are fresh and weigh both sides using the 2 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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