Zebra Technologies Corporation (ZBRA) has demonstrated strong cash generation in the first half of 2026, positioning itself for further growth and shareholder returns. The company reported $361 million in free cash flow, a 25.3% year-over-year increase. This robust cash flow supports investments, debt flexibility, and substantial share repurchases. Zebra now expects full-year 2026 free cash flow of at least $1 billion, up from its previous forecast of $900 million.
Zebra has actively rewarded its shareholders, repurchasing shares worth $568 million in the first half of 2026. In February, the company's board approved an additional share repurchase authorization of up to $1 billion. Zebra expects to repurchase another $150 million of shares in the second half of 2026, bringing the total for the year to approximately $700 million.
Among its peers, Honeywell International Inc. (HON) generated $932 million in cash from continuing operating activities in the first nine months of 2026. Honeywell's free cash flow increased 15% year over year to $688 million in the third quarter, with a free cash flow conversion of 95%. The company now anticipates full-year free cash flow of roughly $2.1 billion, up from the previous projection of $2 billion.
Avery Dennison Corporation (AVY) reported net cash from operating activities of $843.5 million in the first nine months of 2026. Avery Dennison returned $481 million to shareholders through share repurchases and dividends, repurchasing 1.5 million shares with payments totaling $257 million.
Zebra Technologies' shares have gained 42.9% in the past year, outperforming the Zacks Manufacturing - Thermal Products industry's rise of 40.1%. The company's forward 12-month price-to-earnings ratio stands at 19.63, slightly below the industry average of 20.02. The Zacks Consensus Estimate for Zebra's 2026 earnings implies a year-over-year rise of 33.5%, with stable EPS estimates over the past 60 days.