{
  "id": 18010766,
  "title": "Zebra Technologies’ Record Quarter Came With a 2027 Margin Warning",
  "url": "https://urgent.news/2026/11/03/zebra-technologies-record-quarter-came-with-a-2027-margin-warning",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-03T18:41:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/11/03/zebra-technologies-record-quarter-came-with-a-2027-margin-warning/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Zebra Technologies reported a record third-quarter, with revenue up 22.3% year over year to $1.61 billion and adjusted earnings per share at $4.95, surpassing expectations. However, the market reaction focused on the company's warning about profit margins for 2027. CEO Bill Burns indicated that fourth-quarter profitability should serve as a baseline for the following year, with adjusted EBITDA margin expected to be around 22% and full-year 2026 margins at 23.5%. The margin warning stems from memory costs, a crucial component for Zebra's mobile computers. Memory costs grew to $145 million in Q3, up from $120 million in August, and memory price increases accounted for only half of the $50 million increase in memory costs. Despite price hikes, Zebra's margins are expected to dip due to the higher costs, despite securing more memory supply. AI is expected to be a net positive for Zebra, but the company is still in the early days of this trend. Management anticipates a multiyear refresh cycle starting in 2027, with growth expected to hit the high end of its 5% to 7% long-term target.",
  "summary": "Zebra Technologies beat estimates and raised its full-year sales outlook. So why did investors hit the sell button?",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Zebra Technologies’ Record Quarter Came With a 2027 Margin Warning",
        "url": "https://urgent.news/2026/11/03/zebra-technologies-record-quarter-came-with-a-2027-margin-warning-18012100",
        "published": "2026-11-03T19:01:02.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}