Zebra Technologies Corporation

(NASDAQ Global Select)
Back to all articles
Very Bullish +85

ZBRA vs. HON: Which Industrial Automation Stock is a Better Pick?

Acquisition Company update AI-generated analysis

πŸ“ˆ Zebra Technologies reported a 25.9% year-over-year revenue increase in its Connected Frontline segment for the second quarter of 2026, driven by higher sales of mobile computing solutions.

πŸ” The Asset Visibility & Automation segment grew 13.5% year over year in Q2 2026, fueled by strong demand for printing, machine vision, and RFID products.

πŸ’° ZBRA generated $361 million in free cash flow in the first half of 2026, up 25.3% from the prior year, supporting continued investment and shareholder returns.

πŸ›’ The company completed the acquisition of Elo Touch Solutions in September 2025, expanding its addressable market by approximately $8 billion across retail and healthcare.

πŸ€– Zebra Technologies acquired Photoneo in February 2025 to integrate advanced 3D machine vision solutions with AI-based image processing capabilities.

πŸ”„ Management raised full-year 2026 free cash flow guidance to at least $1 billion, up from the previous expectation of $900 million.

πŸ’Έ The company repurchased shares worth $568 million in the first six months of 2026 and received additional authorization for up to $1 billion in buybacks.

πŸ“Š ZBRA stock has risen 39.2% over the past year, significantly outperforming Honeywell International which has declined 48.9% during the same period.

πŸ“‰ Analyst consensus estimates project ZBRA's 2026 EPS to rise 33.5%, contrasting with Honeywell's projected decline of 56.9% for the same metric.

βš–οΈ Zebra Technologies maintains a lower long-term debt-to-capitalization ratio of 12.6% compared to Honeywell's 31.4%, indicating reduced financial risk.

πŸ† ZBRA carries a Zacks Rank #2 (Buy) rating, while Honeywell holds a Zacks Rank #3 (Hold) based on current market conditions and outlooks.

Bullish Signals
  • Zebra Technologies reported a 25.9% year-over-year revenue increase in its Connected Frontline segment for the second quarter of 2026, driven by higher sales of mobile computing solutions.
  • The Asset Visibility & Automation segment grew 13.5% year over year in Q2 2026, fueled by strong demand for printing, machine vision, and RFID products.
  • ZBRA generated $361 million in free cash flow in the first half of 2026, up 25.3% from the prior year, supporting continued investment and shareholder returns.
  • The company completed the acquisition of Elo Touch Solutions in September 2025, expanding its addressable market by approximately $8 billion across retail and healthcare.
  • Zebra Technologies acquired Photoneo in February 2025 to integrate advanced 3D machine vision solutions with AI-based image processing capabilities.
  • Management raised full-year 2026 free cash flow guidance to at least $1 billion, up from the previous expectation of $900 million.
  • The company repurchased shares worth $568 million in the first six months of 2026 and received additional authorization for up to $1 billion in buybacks.
  • ZBRA stock has risen 39.2% over the past year, significantly outperforming Honeywell International which has declined 48.9% during the same period.
  • Analyst consensus estimates project ZBRA's 2026 EPS to rise 33.5%, contrasting with Honeywell's projected decline of 56.9% for the same metric.
  • Zebra Technologies maintains a lower long-term debt-to-capitalization ratio of 12.6% compared to Honeywell's 31.4%, indicating reduced financial risk.
Full Analysis
Zebra Technologies (ZBRA) is reporting robust growth driven by strong demand for mobile computing, printing, machine vision, and RFID solutions across healthcare, manufacturing, and retail sectors. In the second quarter of 2026, the Connected Frontline segment saw revenues increase 25.9% year over year, while the Asset Visibility & Automation segment grew 13.5%. The company is leveraging recent acquisitions, including Elo Touch Solutions and Photoneo, to expand its addressable market by approximately $8 billion and enhance its AI-based image processing capabilities. ZBRA generated $361 million in free cash flow during the first half of 2026, a 25.3% increase year over year, leading management to raise full-year guidance to at least $1 billion. The company is actively returning capital to shareholders through significant share repurchases, having spent $568 million in the first six months and approving an additional $1 billion authorization. Management expects third-quarter net sales to rise 17-20% and full-year revenues to grow 14-16%, supported by digital capability advancements and optimized supply chains. In a comparative analysis with Honeywell International (HON), ZBRA demonstrates superior momentum with its stock up 39.2% over the past year versus HON's decline of 48.9%. Analyst consensus estimates project ZBRA's 2026 sales to grow by 15.2% and EPS to rise 33.5%, contrasting sharply with HON's projected declines in sales and earnings. ZBRA also maintains a lower long-term debt-to-capitalization ratio of 12.6% compared to HON's 31.4%, positioning it as a lower-risk investment option with a Zacks Rank #2 (Buy) rating.