v3.26.1
Segment Information & Geographic Data
 6 Months Ended
Jul. 04, 2026
Segment Reporting [Abstract]  
Segment Information & Geographic Data Segment Information & Geographic Data
The Company’s operations consist of two reportable segments that provide complementary offerings to our customers: Connected Frontline (“CF”), which includes mobile computing and related services and software-based offerings; and Asset Visibility & Automation (“AVA”), which includes barcode and card printing and related supplies and sensors, RFID and RTLS offerings, data capture, machine vision offerings, and related services.
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):
Three Months EndedSix Months Ended
July 4,
2026		June 28,
2025		July 4,
2026		June 28,
2025
Net sales:
CF$903 $717 $1,728 $1,401 
AVA654 576 1,324 1,200 
Total Net sales$1,557 $1,293 $3,052 $2,601 
Cost of sales:
CF$441 $378 $861 $729 
AVA286 296 608 604 
Corporate (3)
5 3 16 7 
Total Cost of sales$732 $677 $1,485 $1,340 
Operating expenses:
CF (1)
$243 $197 $479 $390 
AVA (1)
176 173 365 354 
Corporate (3)
85 63 187 139 
Total Operating expenses$504 $433 $1,031 $883 
Operating income:
CF (2)
$219 $142 $388 $282 
AVA (2)
192 107 351 242 
Total segment operating income$411 $249 $739 $524 
Corporate (3)
(90)(66)(203)(146)
Total Operating income$321 $183 $536 $378 

(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).

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):
Three Months EndedSix Months Ended
July 4,
2026		June 28,
2025		July 4,
2026		June 28,
2025
North America$774 $638 $1,502 $1,277 
EMEA498 418 1,005 866 
Asia-Pacific181 147 348 284 
Latin America104 90 197 174 
Total Net sales$1,557 $1,293 $3,052 $2,601 
(1)Certain prior period net sales have been recast to appropriately reflect customer location, with no impact to Zebra’s consolidated net sales.