v3.26.1
Revenue from Contracts with Customers
 6 Months Ended
Jul. 04, 2026
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes the disaggregation of the Company's revenue by segment, region, major products and services and customer type for the three and six months ended July 4, 2026 and June 28, 2025, consistent with the information reviewed by the Company's chief operating decision maker for evaluating the financial performance of the Company's reportable segments:
Three Months Ended
July 4, 2026June 28, 2025
(In millions)Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Regions:
North America$1,361 $849 $2,210 $1,251 $776 $2,027 
International547 376 923 402 336 738 
$1,908 $1,225 $3,133 $1,653 $1,112 $2,765 
Major Products and Services:
Mission Critical Networks (MCN)$1,567 $713 $2,280 $1,356 $649 $2,005 
Video 341 243 584 297 226 523 
Command Center— 269 269 — 237 237 
$1,908 $1,225 $3,133 $1,653 $1,112 $2,765 
Customer Types:
Direct$1,226 $1,114 $2,340 $1,030 $1,016 $2,046 
Indirect682 111 793 623 96 719 
$1,908 $1,225 $3,133 $1,653 $1,112 $2,765 

Six Months Ended
July 4, 2026June 28, 2025
(In millions)Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Regions:
North America$2,426 $1,641 $4,067 $2,429 $1,450 $3,879 
International1,042 739 1,781 770 644 1,414 
$3,468 $2,380 $5,848 $3,199 $2,094 $5,293 
Major Products and Services:
Mission Critical Networks (MCN)$2,856 $1,393 $4,249 $2,671 $1,235 $3,906 
Video 612 481 1,093 528 436 964 
Command Center— 506 506 — 423 423 
$3,468 $2,380 $5,848 $3,199 $2,094 $5,293 
Customer Types:
Direct$2,171 $2,167 $4,338 $2,046 $1,923 $3,969 
Indirect1,297 213 1,510 1,153 171 1,324 
$3,468 $2,380 $5,848 $3,199 $2,094 $5,293 
Remaining Performance Obligations
Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of a period. Remaining performance obligations are equal to disclosed backlog, except within our Software and Services contracts where multi-year contract terms may be limited by the customer's ability to terminate for convenience. Where termination for convenience exists in the Company's service contracts, its disclosure of the remaining performance obligations that are unsatisfied assumes the contract term is limited until renewal. The transaction value associated with remaining performance obligations which were not yet satisfied as of July 4, 2026 was $9.5 billion, of which $4.1 billion is expected to be recognized in the next twelve months. The remaining amounts will generally be satisfied over time as systems are implemented and services are performed.
Contract Balances
(In millions)July 4, 2026December 31, 2025
Accounts receivable, net$2,160 $2,200 
Contract assets1,455 1,574 
Contract liabilities2,341 2,265 
Non-current contract liabilities844 751 
Payment terms on system contracts are typically tied to implementation milestones associated with progress on contracts, while revenue recognition is over time based on a cost-to-cost method of measuring performance. The Company may recognize a Contract asset or Contract liability, depending on whether revenue has been recognized in excess of billings or billings in excess of revenue. Services contracts are typically billed in advance, generating Contract liabilities until the Company has performed the services. The Company does not record a financing component to contracts when it expects, at contract inception, that the period between the transfer of a promised good or service and related payment terms is less than a year.
Revenue recognized during the three months ended July 4, 2026 which was previously included in Contract liabilities as of April 4, 2026 was $796 million, compared to $663 million of revenue recognized during the three months ended June 28, 2025 which was previously included in Contract liabilities as of March 29, 2025. Revenue recognized during the six months ended July 4, 2026 which was previously included in Contract liabilities as of December 31, 2025 was $1.2 billion, compared to $886 million recognized during the six months ended June 28, 2025 which was previously included in Contract liabilities as of December 31, 2024. Revenue of $1 million was reversed during the three months ended July 4, 2026 related to performance obligations satisfied, or partially satisfied, in previous periods, compared to $5 million recognized for the three months ended June 28, 2025, primarily driven by changes in the estimates of progress on system contracts. Revenue of $1 million was recognized during the six months ended July 4, 2026 related to performance obligations satisfied, or partially satisfied, in previous periods, primarily driven by changes in the estimates of progress on system contracts, compared to $6 million reversed for the six months ended June 28, 2025.
There were no material expected credit losses recorded on contract assets during each of the three and six months ended July 4, 2026 and June 28, 2025.
Contract Cost Balances
(In millions)July 4, 2026December 31, 2025
Current contract cost assets$100 $72 
Non-current contract cost assets150 152 
Contract cost assets include incremental costs to obtain a contract, primarily related to the Company's sales incentive plans, and certain costs to fulfill contracts. Contract cost assets are amortized into expense over a period that follows the passage of control to the customer over time. Incremental costs to obtain a contract with the Company's sales incentive plans are accounted for under a portfolio approach, with amortization ranging from one to seven years to approximate the recognition of revenues over time. Where incremental costs to obtain a contract will be recognized in one year or less, the Company applies a practical expedient around expensing amounts as incurred. Amortization of contract cost assets was $13 million and $27 million for the three and six months ended July 4, 2026, respectively, and $13 million and $26 million for the three and six months ended June 28, 2025, respectively.