Solid growth and earnings weren't enough for Zebra Technologies investors this quarter.
On Tuesday, the maker of productivity and automation software and hardware reported third-quarter earnings per share of $4.95, up 28% year over year, from sales of $1.6 billion, up 22% year over year. Wall Street was looking for earnings per share of $4.89 from sales of $1.6 billion.
Numbers look solid. So does guidance.
For the fourth quarter, Zebra expects sales growth of between 10% and 14%. Wall Street currently projects fourth-quarter sales of $1.6 billion, up 9% year over year.
"We delivered another record quarter underpinned by strong execution and broad-based demand trends, with Elo Touch contributing to our double-digit growth as customers prioritize automating their frontline operations," said CEO Bill Burns in a news release.
Elo Touch is a consumer-facing display Zebra acquired in late 2025.
Still, shares were down 6.3% in premarket trading at $338.49, while S&P 500 and Dow Jones Industrial Average futures were down 0.1% and 0.8%, respectively.
Expectations for earnings were high. Coming into Tuesday trading, Zebra stock was up 49% this year. Shares jumped 27% after the company beat second-quarter earnings per share estimates by 46%. This earnings beat topped the Street by just 1%, but estimates rose roughly 35 cents after the strong second-quarter results.
Whatever the setup, investors don't appear happy with a more modest beat-and-raise quarter from the company.
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