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Can ZBRA's Strong Cash Generation Drive More Growth and Returns?
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Key Takeaways
Zebra Technologies generated $361 million in free cash flow in the first half of 2026, up 25.3%.
ZBRA raised its 2026 free cash flow outlook to at least $1 billion from $900 million.
Zebra Technologies plans roughly $700 million in 2026 share repurchases, including $150 million in H2.
Zebra Technologies Corporation’s (ZBRA - Free Report) healthy free cash flow enables investments and substantial share repurchases. It generated $361 million of free cash flow in the first six months of 2026, up 25.3% year over year. In the first six months of 2026, Zebra Technologies generated net cash from operating activities of $387 million, up from $325 million in the year-ago period.
The company now expects full-year 2026 free cash flow of at least $1 billion, up from its prior expectation of at least $900 million. This cash generation supports continued investment, debt flexibility and shareholder returns.
Zebra Technologies has continued rewarding its shareholders. The company repurchased shares worth $568 million in the first six months of 2026. In February 2026, the company’s board of directors approved an additional share repurchase authorization of up to $1 billion. ZBRA expects to repurchase another $150 million of shares in the second half of 2026, bringing total full-year repurchases to roughly $700 million.
Among its peers, Honeywell International Inc. (HON - Free Report) generated $932 million in cash from continuing operating activities in the first nine months of 2026. HON’s free cash flow increased 15% year over year to $688 million in the third quarter, with free cash flow conversion of 95%. Honeywell now expects free cash flow of roughly $2.1 billion for the full year, up from the previous projection of $2 billion.
Avery Dennison Corporation (AVY - Free Report) generated net cash from operating activities of $843.5 million in the first nine months of 2026. AVY returned $481 million to its shareholders through share repurchases and dividends in the first nine months of 2026. Avery Dennison repurchased 1.5 million shares, with payments totaling $257 million.
ZBRA’s Price Performance, Valuation & Estimates
ZBRA’s shares have gained 42.9% in the past year, compared with the Zacks Manufacturing - Thermal Products industry’s rise of 40.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, Zebra Technologies has a forward 12-month price-to-earnings ratio of 19.63, modestly below the industry average of 20.02. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ZBRA’s 2026 earnings implies a year-over-year rise of 33.5%. The EPS estimates for 2026 have been stable over the past 60 days.
Image Source: Zacks Investment Research
ZBRA stock currently carries a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
Image: Bigstock
Can ZBRA's Strong Cash Generation Drive More Growth and Returns?
Key Takeaways
Zebra Technologies Corporation’s (ZBRA - Free Report) healthy free cash flow enables investments and substantial share repurchases. It generated $361 million of free cash flow in the first six months of 2026, up 25.3% year over year. In the first six months of 2026, Zebra Technologies generated net cash from operating activities of $387 million, up from $325 million in the year-ago period.
The company now expects full-year 2026 free cash flow of at least $1 billion, up from its prior expectation of at least $900 million. This cash generation supports continued investment, debt flexibility and shareholder returns.
Zebra Technologies has continued rewarding its shareholders. The company repurchased shares worth $568 million in the first six months of 2026. In February 2026, the company’s board of directors approved an additional share repurchase authorization of up to $1 billion. ZBRA expects to repurchase another $150 million of shares in the second half of 2026, bringing total full-year repurchases to roughly $700 million.
Among its peers, Honeywell International Inc. (HON - Free Report) generated $932 million in cash from continuing operating activities in the first nine months of 2026. HON’s free cash flow increased 15% year over year to $688 million in the third quarter, with free cash flow conversion of 95%. Honeywell now expects free cash flow of roughly $2.1 billion for the full year, up from the previous projection of $2 billion.
Avery Dennison Corporation (AVY - Free Report) generated net cash from operating activities of $843.5 million in the first nine months of 2026. AVY returned $481 million to its shareholders through share repurchases and dividends in the first nine months of 2026. Avery Dennison repurchased 1.5 million shares, with payments totaling $257 million.
ZBRA’s Price Performance, Valuation & Estimates
ZBRA’s shares have gained 42.9% in the past year, compared with the Zacks Manufacturing - Thermal Products industry’s rise of 40.1%.
From a valuation standpoint, Zebra Technologies has a forward 12-month price-to-earnings ratio of 19.63, modestly below the industry average of 20.02. It carries a Value Score of C.
The Zacks Consensus Estimate for ZBRA’s 2026 earnings implies a year-over-year rise of 33.5%. The EPS estimates for 2026 have been stable over the past 60 days.
ZBRA stock currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.