[Operator Instructions] Our first question comes from Keith Housum from Northcoast Research.

Congratulations on a great quarter. Bill, as we're kind of thinking about the rest of the year into 2027. Now the past 2 quarters, this quarter and last quarter, you referenced some successful deployments expected in 2027 in the T&L segment. Can you give us a little bit more color on that? Again, I'm [ not asking for you to give some ] guidance, but it sounds like your confidence in 2027 is growing based on some of the bookings that you have for that? Just any color you can provide on that would be great.

Yes, Keith, I would say that the excellent results certainly in the quarter overall with great execution by the team. So I'll start there. When we look at the vertical markets, clearly saw the T&L cycling difficult comparison last year, just high compares. But still saw solid performance across that vertical market with growth across third-party logistics and warehousing in this segment. So we feel good about Transportation & Logistics and the investments they're making in technology despite the compare from a year ago. I'd say that, as you referenced, really a robust multiyear pipeline of large deployments coming across T&L really focused on last-mile delivery and our customers and our differentiation coming from our new mobile devices, which add RFID and AI capabilities to those devices are clearly giving us a competitive advantage in the market. The deployment of RFID continues across Transportation & Logistics as we see that investment continuing. And I'd say that they're focused really on worker productivity, how do they drive operational efficiency, how do they increase visibility of parcels across their network. But we see over -- starting in '27, a strong pipeline of opportunities for refreshes within Transportation & Logistics, and we continue those conversations with customers and are ever confident in that happening.

Great. I appreciate that. And then you made some positive commentary in terms of machine vision this quarter. Any color you can comment on in terms of the progress that you've made over the past year, 1.5 years in that and how you're thinking about that for the rest of the year?

Yes. I think just like T&L, we saw strength in manufacturing. So the -- while T&L has been a strong segment, manufacturing continues strength as well. So we're seeing the drive, again, for increased visibility across the supply chain, electronics and pharmaceuticals, certainly a strength in the quarter in manufacturing. And then that driving really outperformance in machine vision with the team executing well within machine vision. Really, we've aligned our business unit, our go-to-market teams to really focus on specific opportunities within manufacturing. We've talked about our increased focus on manufacturing over the last couple of quarters. And that alignment with our regional sales teams is really driving our value proposition into the marketplace, which is resonating with not just our sales teams, but our partners and our customers as well. We continue to enhance the portfolio of solutions and machine vision, and we're seeing an excitement by the team and then strong growth. I mean there's lots of examples using AI for optical character recognition, for instance, in places like outside of manufacturing, logistics and inside of manufacturing, things like food and beverage. So there's lots of examples of places where we're focused and we're winning. We've seen strong performance from Photoneo, so acquisition in the space to continue to enhance our offerings, both organically and inorganically in machine vision. So we like this space. We're seeing growth across the business in manufacturing. We're seeing it diversifying the business and our team's focus is playing out as we'd expected, driving growth for us.

The next question comes from Tommy Moll from Stephens.

Bill, it sounds like in second quarter, part of the reason you've exceeded the top line expectation was the memory supply was a little better than expected. So my question is to what extent is your guidance for 3Q and the second half still constrained by that memory supply? And to what extent do you have visibility into 2027 on that improving?

Yes, I'll start and then maybe hand over to Nathan. I would say that memory continues to be a dynamic and challenging environment. I'd say that our teams executed really well, both through the first half of the year and especially in the second quarter here to work closely with our suppliers to secure the memory we needed to get above the top end of our guide. We had told you that our demand was at that level and that really it was being gated by memory constraints. We're confident in mitigating the memory challenges to achieve our second half outlook. So demand signals and the demand we're seeing from our customers is above what we're guiding to, and there is still constraints out there, but the team has done an amazing job of really secure memory. And I'll let Nate take you through the details, but they're doing a lot to make sure that we can deliver for our customers, not just in second quarter, but through the second half of the year and into 2027.

Yes. Tommy, just to add a few things. We talked about this before in terms of the different mitigation strategies and actions that teams are taking and we do expect, as Bill mentioned, a modest increase in memory in the second half, but the team is really working hard to meet the unconstrained demand, which, again, is near the high end of our guidance range. The work we're doing with the direct supplier co-planning is really paying out, working on the supply pipeline, not just for the next 3 to 6, but actually in the next 18 months. And then a lot of work with our product teams on qualifying new suppliers, new different chip types. We're working with 10 different new suppliers and the goal is to have 5 to 7 qualified suppliers for each of our primary memory types. So I think all those actions we're taking gives us confidence that we'll be able to continue to secure the volume we need to support our customers into 2027 and the growth that's required.

Nathan, a follow-up for you on the share repurchase activity, pretty robust through the first half. What can you tell us about any plans to continue to deploy capital there in second half of this year?

Just start with the overall capital allocation, we ended the quarter at 1.9x debt leverage, strong cash flow expected for the year at $1 billion. The balance sheet is in great shape. As we mentioned on the call, we repurchased $568 million through the second quarter, but we've continued to be active here in the early part of the third quarter, given what we believe is still an attractive stock valuation. Our full year EPS guide assumes that we'll do an additional $150 million of share repurchase in the back half, so call it, $700 million for the year. I think we plan to take a bit more of a balanced approach here in the second half to maintain some flexibility. But again, have the option to continue to purchase more if we think it's -- the stock still remains at an attractive price.

Our next question comes from Quinn Fredrickson from Baird.

Just on memory, you talked about supply. I'm wondering when you might get visibility into next year's component costs from your key suppliers? I know you're on contract, not spot pricing. So when do you typically get some visibility into memory costs for next year?

I'll take that. One, from a cost, I think just to start with this year, the market pricing is in line with our prior guide. So as we kind of laid out the year in the guidance, the pricing and the price increases that we have planned at the beginning of the year are largely playing out as expected. And as you would expect, there's quite a variability across the different memory types, and the direct purchasing with those memory suppliers is really playing -- is a really big benefit in terms of avoiding the spot market as much as we can. We typically get pricing at the beginning of 3 months in advance or every 3 months. But I'd say, up to this point, our key suppliers have been pretty transparent around where they expect the price to go out into the future, while it's not set. So I think the team has a pretty good handle on not only what we expect for the next 3 to 6 months, but where that trajectory is expected to be as we go out into 2027. And that's where we're going to continue to monitor. And I'd say our commitment just like it was this year is to continue to take the necessary actions to mitigate that exposure in the P&L whether that's through our own increased pricing actions or other productivity initiatives to offset and continue to ensure we expand margins as we go into '27.

And then you gave guidance for third quarter and the full year here. So it looks like organic growth for fourth quarter is implied in about the 8% range. Can you just discuss how you think about what's embedded around year-end customer budget flush or large deals at this stage based on your conversations with customers?

Yes. So if you look -- again, we have a robust pipeline here as we go into the second half. So I think the conversations have continued to be productive similar to what they are in prior years. We don't typically get that full indication until we get to later part of the third quarter and early part of the fourth quarter. So we feel good about the position we have for the fourth quarter in terms of the overall pipeline. And today, somewhat Q4 is capped by just on the memory supply we expect or have confidence in achieving here in the fourth quarter. So again, but the team is actively working to secure that pipeline, get the visibility we need back to the supply chain team, so we can work with our suppliers to meet that demand, which, again, we were able to do here in the second quarter.

Our next question comes from Andrew Buscaglia from BNP Paribas.

I wanted to check on -- your sales have just picked up nicely in Q2. But your Q3 guidance implies some slight deceleration. I mean, still very strong, but wondering what's informing that guidance. And then similarly for Q3 margins, you had a nice -- exceeded expectations by quite a bit, even ex tariff refunds, but then your Q3 margins imply a slight step down. So I'm just wondering if there's something going on with mix or timing of demand -- or timing of orders coming through? Or how would you characterize that?

I'd maybe just start with the kind of the overall outlook. I think we have obviously confidence in the guide given the first half performance. A lot of the back half is still somewhat predicated around the memory capacity that we expect. So to a certain degree, the growth rates are somewhat based on just prior year compares and where we expect the supply to play out and gives us confidence in that guide. So if you look at the Q3 sales guide of 17% to 20%, 8% organic at the midpoint, which includes about 2 points of pricing. Again, we feel great about that ramp and the trajectory and the underlying demand supporting the business. And I think on the -- from an EBITDA rate perspective, if you look at the step down from Q2 to Q3, obviously, a primary driver that is removing the IEEPA refunds here in the Q2 results. And there's about 1 point degradation coming from higher memory costs. So we do expect memory costs to increase as we go from Q2 to Q3. We were able to fully mitigate the memory step-up in the second quarter with our own pricing actions, but we do anticipate a slight degradation as we go into the third quarter, which was always planned out as part of our implied guide at the beginning of the year. So operationally, excluding memory, it's somewhat in line sequentially in a similar level of mix as we go from the second to third quarter.

Okay. Got it. And you raised prices this year, obviously, to help mitigate things. I think you indicated you can raise prices again if you want to. I guess, what gives you that confidence? And how quickly can you implement it? And what would you need to see if you had to move forward with further price increases?

Yes, I'd say, Andrew, we'd prefer not to raise price. That's our -- certainly our strong preference. But we've had to do that based on the significant increase in memory. We believe that and have confidence that if we need to, we can see that pricing flow through, and we've been able to demonstrate that both in our business and in the Elo acquisition as well on both sides. So our preference is not to raise price. But as we need to do that as memory pricing continues to increase, we'll do that just like other suppliers have had to do. So I think that our preference is not, but that's kind of where things are at across the industry. There's just no way not to raise price given the significant increase in memory pricing today.

The next question comes from Joe Giordano from TD Cowen.

Look, I know we've talked about this a lot. I just want to be very clear, like -- and correct me if I'm wrong and how I was thinking about it. But last quarter, I think you characterized the revenue guidance at the high end as kind of unachievable in light of current memory availability at that time. Now here you raised the high end. Like is the high end of your revenue guidance achievable in the current memory availability framework?

Yes. I'd say, Joe, that I think that the position we took in Q2 is the same that we've taken for Q3 and the full year guide, which is the demand signals today from our customers and the investments they're making across each of our vertical markets and across each of our regions really leads us to the high end of our outlook for Q3 and for the full year. And the midpoint of that outlook factors in the potential supply constraints associated with memory that we're seeing. So I think it's the same approach we had in Q2. We've now taken for Q3 and full year. The team executed very well, delivering for our customers in Q2, which has got us to the -- above the high end of our range. But in second half, we're continuing to see a challenging and dynamic environment around memory. So the prudent thing for us to do is to -- the demand signals take us at the high end, but our guide is really at the midpoint of our guide that really factors in the potential supply constraints that we'd expect to see in second half.

But obviously, both were significant steps up from where we were last quarter, both in -- which I think is a response to what we see as the underlying demand and the great work the team is doing to secure additional supply. So I think both -- as Bill mentioned, that's playing out in the guidance. But I think the positive note is that both were substantially higher than we were 3 months ago by the great work from the team.

Is an LTA available to you guys if you wanted to pursue that?

We've had discussions regarding supply agreements with various of our memory suppliers. But our priority up to this point has really been on qualifying new suppliers and memory types, along with working on that visibility, both here in the short and long term, and that's been playing out. So while those discussions are ongoing, we don't think it's limiting us or preventing us from achieving it. And if those were necessary to obtain increased supply, we absolutely would, but hasn't been necessary to this point.

The next question comes from Piyush Avasthy from Citi.

Just following up on like some of the other questions asked on the guidance raise. I mean you are raising the organic growth expectations for the full year for 2026. Like can you provide some clarity on how we should be thinking about the 2 segments, like Connected Frontline has some memory constraints, so I understand that. But AVA had a really strong quarter, not sure if there's like any one-time item to call out there, but do you expect like AVA should lead that growth? Or do you think like CF could more meaningfully contribute as we progress through the year?

Yes, I think we see strong growth across both the segments. So Asset Visibility & Automation really focused on insights into assets within our customers. So think of inventory as an example in retail. So print, data capture, machine vision, RFID are all part of that portfolio of solutions. We, in Q2, saw strong growth in print, again, driven by strength in manufacturing, for example. But we also had strong growth rates in volume and run rate for data capture solutions. Our supplies business continues to be strong. Strong quarter, a very strong quarter in machine vision and RFID deployments continue. So I think strength in Asset Visibility certainly -- & Automation segment, but also Connected Frontline. So I think that we're clearly seeing that our customers are deploying more devices in the hands of more frontline workers to really improve productivity, drive collaboration, how do they enhance their interaction associates have with the customers on the frontline. And that segment, of course, is mobile computing, but also our Elo segment fits into that software and our AI solutions, and we're seeing mobile computing, next generation of those devices, adding AI capabilities and RFID, next-generation wearables, devices optimized with the processing power necessary to deploy AI, both our AI suite and deployments our customers are looking to make. Elo, we had a strong performance in the second quarter and expect that to continue in the second half year with momentum with the Elo acquisition with the 2 sales teams working closely together and positioning those solutions across our customer base. So I'd say you expect growth in both segments in the second half of the year and feel good about the demand across -- we're seeing across the portfolio, across the regions, across the different vertical markets, truly broad-based growth.

Very helpful. And I think like I get the point that it's very broad-based, but it seems like EMEA has been a bit of a laggard. I mean there was decent growth this quarter. But like -- and you mentioned like Middle East impact there. But can you elaborate on the underlying demand environment across like different business verticals in the EMEA region specifically? And as you think of like 2026, like based on the conversations with your customers there, like how do you think like Europe would contribute to the organic sales growth construct?

Yes. I mean EMEA was slightly behind the other regions. And I think if you go back a couple of quarters ago, EMEA growth was a bit challenged, but I think some of that was tougher compares from the prior year. We're seeing resilient demand across Europe. Obviously, as you said, softness in the Middle East, right, is the geopolitical challenges there. Relative strength, I'd say, in retail, manufacturing, healthcare across EMEA, double-digit growth in machine vision, our supplies business, RFID, print, mobile computing. So I think we're seeing strong growth, it was 7% for the quarter. And I think that slightly below the other regions of North America. And then certainly, we saw a lot of strength in Asia Pac and Latin America. But I don't think we have any concerns about EMEA. We feel good about what they're seeing. And it's been pretty resilient given all the things happening across the European market.

The next question comes from Meta Marshall from Morgan Stanley.

A couple of questions for me. Just in terms of -- on Elo, just where do you feel like you've got -- clearly, the business is continuing to do quite well. But just in terms of kind of revenue synergies or selling into the base, where are you in terms of kind of exploiting some of those natural overlap? And then maybe on the healthcare side, you noted very strong kind of traction there over the last quarter. Just trying to get a sense of are those new customers? Are those new project types? Just where is that kind of traction coming from?

I'll start with Elo. I would say that excited about certainly the performance and the workaround integration as you mentioned, it really reaffirms our conviction that the acquisition of Elo and the combined capabilities between our 2 portfolios that really gives us another dimension on the frontline, which is really the focus areas there are modernizing point of sale, certainly continuing to streamline self-service and then the payment portfolio at Elo. So I think we saw growth above our expectations in Q2, strong pipeline of opportunities driven by our sales teams working closely together and growing that commercial pipeline, but also progress we're making on synergies, about $10 million identified so far. But the real synergies come, as you pointed out, around the commercial side of things. We're expanding into new geographies that Elo didn't have a presence in before. We've got named accounts across the globe in which we're focused on joint selling efforts, and those are beginning to pay off with strong pipeline of opportunities, early wins and continuing to position the entire broad portfolio. I'd say in healthcare, highest growth vertical in the quarter, and you see this repeatedly from time to time here in healthcare, strong performance in mobile computing. So we're clearly seeing the equipping of more caregivers with enterprise-grade solutions. It's really around staff communication and collaboration, enhancing patient safety around operational efficiency in the healthcare base. We've seen clinical mobility. We've seen urgent care locations driving the business, track and trace opportunities across healthcare and getting better visibility into what inventory they have. We also see Elo opportunities in healthcare. So we've taken the Elo products and solutions, an area they really weren't a primary focus for them into the HIMSS trade show earlier this year and really looking at self-service applications, both for things like patient check-in or visitor check-in. But more opportunities in healthcare for Elo as well. So I think that healthcare continues to be a strong vertical for us, new customers and existing customers and new use cases and certainly more devices in the hands of more clinical workers overall.

The next question comes from Guy Hardwick from Barclays.

Great results, guys. So Nathan, so I think if you go back 3 months ago, you said that the $120 million of memory headwinds would be half offset by price, so maybe $50 million, $60 million realized over the 3 quarters. It looks like you've already realized $20 million. I think you said in the Q3 guidance, there's going to be 2 points of price. So that suggests perhaps another $30 million. So can you tell us what's happening in pricing? Is pricing being realized more quickly than you realized? Was there some mix effect? Or has there been some other price increases that perhaps have not been announced, which are benefiting results?

Yes. No, Guy, that's exactly right. So out of the $120 million of gross headwinds, we had previously communicated $60 million expected benefit from pricing. We've increased that now to $90 million primarily due to the strength we saw in the second quarter. And I think that's a real credit to the team. One thing we did differently this time versus other price increases, while the price increase went into effect in the later part of March, we were proactively looking at deals and quoting opportunities at the higher price going back to the beginning of the year as we saw the price increase. So I think that proactively getting those projects that were in the pipeline for the second quarter and embedding the incremental pricing ahead of the actual price increase in the announcement was a big driver. And I think the team has been super focused on it, a big credit to the sales team and our product teams for driving it. But that obviously gives us confidence here as we go to the back half of the year to deliver on what we need for the back half and substantially -- and continue to increase that as we go into the fourth quarter and into '27 to fully mitigate the exposure.

Okay. And in EMC, what do you think kind of just in EMC, what sort of price increases are you realizing?

Yes, it's pretty well split. I mean, EMC takes a little bit longer just given the types of deals and the project base. But the vast majority of the price increase we announced in the second quarter was for our mobile computing portfolio. But we've seen nice strong realization in print and other parts of the portfolio. So we're seeing it pretty broad-based. But I'd say the mobile computing made up probably about half of the price increase here in the second quarter, and we'd expect that to increase as we go to the back half of the year.

The next question comes from Trevor Sahr from William Blair.

This is Trevor on for Brian. Just one for me. I was wondering if you could give a little bit more detail on the memory tech and the signals from customers -- sorry, suppliers and how they're investing for that new memory tech in 2027. And are customers asking for your products to be upgraded to this new memory tech for '27?

Yes. So if you look, we've done a lot of work within the portfolio. I mean the vast majority of our products are on the low-power LPDDR5, which is where the primary memory type that a lot of the capacity is moving to. So I think that puts us in a nice position of our portfolio being where capacity is moving towards and we're obviously working with each one of our suppliers as they move to the next-generation memory type within that band as well as qualifying new suppliers. The work with our commercial teams and our customers is really around, again, do they need 6, 8, 12, 16 gig memory? And what's the right memory for the use cases that they have, the applications? Obviously, what their future use of the device is going to be over the next 2 to 3 years as they're making those decisions? But also there's a big price difference between those different types that we will to make sure our customers are aware of as well as capacity is different across each one of those. So I'd say it's a very active dialogue with the customers around their needs, the timing of when they need the product and then what's available. So it's quite an extensive amount of coordination across the groups. But I think the team is doing a great job of working that between the sales team, the business units and our supply chain team to get the right product to our customers that meet their long-term needs with the best possible outcome, both from a timing and pricing perspective.

And the next question comes from [ Patrick Muth ] from Needham.

This is [ Patrick Muth ] on for Jim Ricchiuti at Needham. I was curious about the RFID growth in the quarter and if you guys are still expecting that double-digit growth for the full year as opposed to OpEx investments in RFID? And then secondly, is there any more color that you guys can share on gross margins and OpEx in the second half of the year?

Yes, Patrick, I'll start and then hand over to Nathan. Strong pipeline of opportunities with RFID as we continue to see investments across the supply chain, so retail, transportation, logistics, manufacturing, government as well. So we're expecting growth for the full year despite second quarter being flat, that's really primarily just timing on projects. Again, no concerns on our part about the growth of RFID. I think we're seeing the continued opportunities beyond retail apparel into broader merchandise parcel within transportation, logistics, fresh food in grocery, quick-serve restaurants, healthcare, government applications. So broad use cases of RFID really going to drive that growth for full year, just again not concerned about second quarter really at all. It's all project timing. Track and trace across the supply chain continues to be a focus for our customers. Zebra has the broadest set of solutions inside RFID today. So whether it's fixed or handheld reading, our printers today printing RFID labels, we're really excited about our new line of mobile devices and wearables that have integrated near-field RFID reading capabilities associated with them, embedded in those devices that we're seeing a lot of interest from our customers that are pulling RFID for those devices. So we're excited about RFID and the expanded opportunity it represents. And again, full year growth definitely expected from the RFID portfolio.

Yes. If you look at the back half margin as well as OpEx assumptions, the Q3 guide around approximately 22%, as I mentioned earlier, it was a slight step down from the Q2 results, excluding IEEPA refund of about 1 point, reflecting the higher memory costs, and we'd expect a similar margin profile as we go into the fourth quarter that's embedded in the guidance. I'd say, a lot of work on the OpEx line. We'll get about 1 point of scaling for the year, driven on the higher volume, but also we took significant restructuring throughout the first half of the year, which we completed here exiting the second quarter, which is allowing us to not only rightsize the portfolio, but absorb some of the higher healthcare costs and those types of things, while we continue to invest in our new AI solutions as well as expanded market coverage in our go-to-market team. So we'd expect that scaling to continue here as we go through the back half of the year and into 2027 in OpEx.

And our last question comes from Amit Mehrotra from UBS.

This is Pratap on for Amit Mehrotra. So my first question is on the full year guide. If we take out pricing, volume growth seems to be around mid-single-digit range. Now as we think beyond this year, do you think that rate is sustainable and can even improve into the next year? Like I know this is a bit too early to provide any outlook for 2027, but can you help me with any framework around this like which parts of the portfolio can accelerate versus which can slow down?

Yes. If you look at our full year sales guide of 14% to 16%, 15% at the midpoint, that's organic growth of 7 points, which includes 2 points of price, and some of that pricing will roll over into 2027 just given the timing of the announcements, where acquisitions and FX make up 8 points -- the remaining 8 points of the delta. Look, I think as Bill mentioned earlier, we're excited about the long-term opportunities for the company. And while we're not guiding for '27, I think if you look at the underlying demand of the business, the pipeline, we have a project in the innovation, we feel confident that we'll be able to continue to meet the growing demand for our customers. And I'd say there's no reason to -- as we look at the long-term growth of 5% to 7 % that would be not somewhere within that range as we move forward out of '27, but into 2027. But a lot of that depends on, again, the timing of the pipeline along with looking at the memory capacity as we enter '27.

And just on a follow-up on this, like if I look at the quarter, organic sales growth was like 9%, which is very strong. But was memory still a constraint for you in the quarter? Like in other words, like do you think sales growth could have been even higher in the second quarter and full year guide if memory is under constraint?

Yes, I think what we were saying before is that the demand certainly is strong from our customers and the momentum continues across each of our vertical markets. And across both Asset Visibility and the Connected Frontline segments. Our outlook is -- demand would represent kind of the high end of our outlook for Q3 and the full year and we're factoring in supply constraints into that, that takes us down to about the midpoint of our guide, which is the same that we did in our guide for Q2. We were able to secure additional memory supply, which pushed us above the top end of our range for Q2. But we clearly are seeing strong demand for our solutions, and we're factoring in the potential constraints of memory into our guide for Q3 and for full year.

This concludes our question-and-answer session. I'd like to turn the conference back over to Bill Burns for any closing remarks.

Yes, I'd like to wrap up by thanking our employees, our partners and our suppliers for their support in delivering record results in Q2. We are making excellent progress on our 2026 priorities, and we're excited about the opportunities ahead of us. Have a great day, everyone. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.