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Segment Information & Geographic Data
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information & Geographic Data Segment Information & Geographic Data
Segment results
Effective in the fourth quarter of 2025, we realigned our reportable segments from the former EVM and AIT segments to two new segments: CF and AVA. The CF segment consists of our mobile computing products, and related services and software-based offerings that were formerly part of our EVM segment. The AVA segment consists of our barcode and card printing products and related supplies and sensors, RFID and RTLS offerings, and related services that collectively represented our former AIT segment, as well as our data capture, and machine vision offerings and related services that were formerly part of our EVM segment. This change aligns with how we are operating our business to advance our strategy and the level of detailed financial information reviewed by our chief operating decision-maker going forward. Also effective in the fourth quarter of 2025, share-based compensation expense is excluded from the measurement of segment operating results. Historical segment results have been recasted to confirm with current period presentation. As previously discussed, the results of operations for Elo and Photoneo are included in the CF and AVA segments, respectively.

The reportable segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker or “CODM”) to assess segment performance and allocate resources among the Company’s segments. The CODM reviews operating income to assess segment profitability monthly as well as part of the Company’s budget and forecasting process. The CODM assesses the profitability of each segment relative to its long-term growth objectives in evaluating resource allocation priorities. Segment assets are not reviewed by the Company’s CODM and therefore are not disclosed below.

Financial information by segment is presented as follows (in millions):
 Year Ended December 31,
 202520242023
Net sales:
CF$2,960 $2,714 $2,280 
AVA2,436 2,267 2,304 
Total Net sales$5,396 $4,981 $4,584 
Cost of sales:
CF$1,564 $1,380 $1,249 
AVA1,217 1,179 1,206 
Corporate (3)
22 
Total Cost of sales$2,803 $2,568 $2,461 
Operating expenses:
CF (1)
$811 $775 $703 
AVA(1)
705 668 671 
Corporate (3)
377 228 268 
Total Operating expenses$1,893 $1,671 $1,642 
Operating income:
CF (2)
585 559 328 
AVA (2)
514 420 427 
Total segment operating income$1,099 $979 $755 
Corporate (3)
(399)(237)(274)
Total Operating income$700 $742 $481 

(1)CF and AVA segment operating expenses include Selling and marketing, Research and development, and General and administrative expenses, excluding the amounts classified within Corporate.

(2)CF and AVA segment operating income includes depreciation expense proportionate to each segment’s Net sales.

(3)To the extent applicable, amounts included in Corporate consist of Share-based Compensation, Amortization of intangible assets, Acquisition and integration costs, Exit and restructuring costs, as well as certain other non-recurring costs (impairment of goodwill and other intangible assets, and business acquisition purchase accounting adjustments).
Sales to significant customers
The Company has three customers, who are distributors of the Company’s offerings, that individually accounted for more than 10% of total Company Net sales during the years ended December 31, 2025, 2024 and 2023. The approximate percentage of Company total Net sales by segment to these customers were as follows:

Year Ended December 31,
 202520242023
CFAVATotalCFAVATotalCFAVATotal
Customer A16 %13 %29 %11 %10 %21 %%10 %18 %
Customer B%%15 %10 %%19 %%%14 %
Customer C%%15 %%%14 %%%12 %
These customers accounted for 31%, 14% and 13%, respectively, of accounts receivable as of December 31, 2025, and 24%, 13% and 11%, respectively, of accounts receivable as of December 31, 2024. No other customer accounted for more than 10% of total Net sales during the years ended December 31, 2025, 2024 or 2023, or more than 10% of outstanding accounts receivable as of December 31, 2025 or 2024.

Geographic data
Information regarding the Company’s operations by geographic area is contained in the following tables. Net sales amounts are attributed to geographic area based on customer location.

Net sales by region were as follows (in millions)(1):
 Year Ended December 31,
 202520242023
North America$2,695 $2,492 $2,353 
EMEA1,724 1,635 1,433 
Asia-Pacific613 526 513 
Latin America364 328 285 
Total Net sales$5,396 $4,981 $4,584 
(1)Certain current year and prior period net sales have been recast to appropriately reflect customer location, with no impact to Zebra’s consolidated net sales.

The U.S. and Germany were the only countries that accounted for more than 10% of the Company’s net sales in 2025, 2024 and 2023. Net sales during these years were as follows (in millions)(1):
 Year Ended December 31,
202520242023
U.S.$2,643 $2,431 $2,277 
Germany864 797 682 
Other1,889 1,753 1,625 
Total Net sales$5,396 $4,981 $4,584 
(1)Certain prior period net sales transactions have been recast to appropriately reflect customer location, with no impact to Zebra’s consolidated net sales.

Geographic data for long-lived assets is as follows (in millions):
 Year Ended December 31,
 202520242023
North America$371 $341 $338 
EMEA60 56 61 
Asia-Pacific72 69 73 
Latin America16 
Total long-lived assets$519 $472 $478 
For the purpose of this disclosure, long-lived assets are defined by the Company as property, plant and equipment and ROU assets. Primarily all of the Company’s long-lived assets in the North America region are located in the U.S.