ZEBRA TECHNOLOGIES CORPZBRA
ZEBRA TECHNOLOGIES CORP Segments Disclosure
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, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net sales: | |||||||||||||||||
| CF | $ | 2,960 | $ | 2,714 | $ | 2,280 | |||||||||||
| AVA | 2,436 | 2,267 | 2,304 | ||||||||||||||
| Total Net sales | $ | 5,396 | $ | 4,981 | $ | 4,584 | |||||||||||
| Cost of sales: | |||||||||||||||||
| CF | $ | 1,564 | $ | 1,380 | $ | 1,249 | |||||||||||
| AVA | 1,217 | 1,179 | 1,206 | ||||||||||||||
Corporate (3) | 22 | 9 | 6 | ||||||||||||||
| 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, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| CF | AVA | Total | CF | AVA | Total | CF | AVA | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Customer A | 16 | % | 13 | % | 29 | % | 11 | % | 10 | % | 21 | % | 8 | % | 10 | % | 18 | % | |||||||||||||||||||||||||||||||||||
| Customer B | 8 | % | 7 | % | 15 | % | 10 | % | 9 | % | 19 | % | 6 | % | 8 | % | 14 | % | |||||||||||||||||||||||||||||||||||
| Customer C | 9 | % | 6 | % | 15 | % | 8 | % | 6 | % | 14 | % | 6 | % | 6 | % | 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, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| North America | $ | 2,695 | $ | 2,492 | $ | 2,353 | |||||||||||
| EMEA | 1,724 | 1,635 | 1,433 | ||||||||||||||
| Asia-Pacific | 613 | 526 | 513 | ||||||||||||||
| Latin America | 364 | 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, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S. | $ | 2,643 | $ | 2,431 | $ | 2,277 | |||||||||||
| Germany | 864 | 797 | 682 | ||||||||||||||
| Other | 1,889 | 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, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| North America | $ | 371 | $ | 341 | $ | 338 | |||||||||||
| EMEA | 60 | 56 | 61 | ||||||||||||||
| Asia-Pacific | 72 | 69 | 73 | ||||||||||||||
| Latin America | 16 | 6 | 6 | ||||||||||||||
| 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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.