A Member of Pat McKeough’s Inner Circle recently asked for his advice on Zebra Technologies, a global market leader in enterprise asset intelligence with a comprehensive ecosystem of barcode scanners, mobile computers, and RFID solutions that digitize and automate workflows.
Pat likes the firm’s dominant position as the clear “toll-collector” of the global supply chain. Their dominant market share (roughly 40-50% in core categories) creates a significant “moat” as their proprietary software ecosystem makes it difficult for customers to switch to competitors.
Zebra Technologies Corp. (Symbol ZBRA on Nasdaq; www.zebra.com) is a global leader in the Automatic Identification and Data Capture (AIDC) industry.
The AIDC market consists of mobile computing, data capture, radio frequency identification devices (RFID), and thermal barcode printing. It also includes other workflow automation products and services.
Zebra’s products, services and software aim to help its customers and end-users digitize and automate their workflows to achieve their business goals. These include improved productivity and operational efficiency, regulatory compliance, and better customer experiences.
The company designs, makes and sells a broad range of AIDC offerings. These include mobile computers, barcode scanners and imagers, RFID readers, specialty printers for barcode labelling and personal identification, and real-time location systems (RTLS). The company also makes related accessories and supplies, such as labels and other consumables, and related software applications.
In addition, Zebra provides machine vision and robotics automation solutions. The company’s services include maintenance, technical support, repair, and managed and professional services. It also offers cloud-based subscriptions.
End users of the company’s products include companies in retail and e-commerce, manufacturing, transportation and logistics, healthcare, and the public sector.
[ofie_ad]
Zebra operates in 114 facilities with about 9,900 employees worldwide. The company provides its offerings through a direct sales force and a network of over 10,000 partners that operate in about 176 countries.
Zebra operates through two segments: Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM).
AIT includes barcode and card printing, RFID and RTLS offerings, supplies and services.
EVM includes mobile computing, data capture, fixed industrial scanning and machine vision services.
Zebra Technologies makes a couple of savvy acquisitions
On February 28, 2025, the company acquired Photoneo, a leading developer and manufacturer of 3D machine vision offerings. The price was $62 million
On October 1, 2025, Zebra announced the completion of its acquisition of Elo Touch Solutions for approximately $1.3 billion. This strategic acquisition enhances Zebra’s market position in customer-facing workflows, expanding its markets and allowing it to offer a unified platform across mobile and fixed digital touchpoints, thereby improving frontline efficiency and customer service in industries such as retail, hospitality, and healthcare.
Meanwhile, in the three months ended September 27, 2025, Zebra’s revenue rose 5.2%, to $1.32 billion from $1.26 billion a year earlier. Revenue was higher due to improving demand trends that began in the middle of 2024.
Excluding one-time items, Zebra earned $198 million, or $3.88 a share, in the latest quarter. That was up 9.4% from $181 million, or $3.49 a share.
The company’s shares trade at a reasonable 16.9 times this year’s forecast earnings of $17.62 a share.
Recommendation in Pat’s Inner Circle: Zebra Technologies Corp. is okay to hold.
