ZEBRA TECHNOLOGIES CORP, 10-Q filed on 5/12/2026
Quarterly Report
v3.26.1
Cover - shares
 3 Months Ended
Apr. 04, 2026
May 05, 2026
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Apr. 04, 2026  
Document Transition Report false  
Entity File Number 000-19406  
Entity Registrant Name Zebra Technologies Corporation  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 36-2675536  
Entity Address, Address Line One 3 Overlook Point  
Entity Address, City or Town Lincolnshire  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 60069  
City Area Code 847  
Local Phone Number 634-6700  
Title of 12(b) Security Class A Common Stock, par value $.01 per share  
Trading Symbol ZBRA  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   47,633,392
Amendment Flag false  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0000877212  
Current Fiscal Year End Date --12-31  
v3.26.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Apr. 04, 2026
Dec. 31, 2025
Current assets:    
Cash and cash equivalents $ 114 $ 125
Accounts receivable, net of allowances for doubtful accounts of $1 million each as of April 4, 2026 and December 31, 2025 733 801
Inventories, net 692 729
Income tax receivable 30 31
Prepaid expenses and other current assets 126 110
Total Current assets 1,695 1,796
Property, plant and equipment, net 350 353
Right-of-use lease assets 170 166
Goodwill 4,709 4,727
Other intangibles, net 765 809
Deferred income taxes 410 414
Other long-term assets 233 237
Total Assets 8,332 8,502
Current liabilities:    
Current portion of long-term debt 264 141
Accounts payable 581 695
Accrued liabilities 459 558
Deferred revenue 434 446
Income taxes payable 25 12
Total Current liabilities 1,763 1,852
Long-term debt 2,387 2,361
Long-term lease liabilities 158 157
Deferred income taxes 32 32
Long-term deferred revenue 398 396
Other long-term liabilities 124 116
Total Liabilities 4,862 4,914
Stockholders’ Equity:    
Preferred stock, $.01 par value; authorized 10,000,000 shares; none issued 0 0
Class A common stock, $.01 par value; authorized 150,000,000 shares; issued 72,151,857 shares 1 1
Additional paid-in capital 866 814
Treasury stock at cost, 23,768,847 and 22,558,911 shares as of April 4, 2026 and December 31, 2025, respectively (2,787) (2,488)
Retained earnings 5,414 5,279
Accumulated other comprehensive loss (24) (18)
Total Stockholders’ Equity 3,470 3,588
Total Liabilities and Stockholders’ Equity $ 8,332 $ 8,502
v3.26.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Apr. 04, 2026
Dec. 31, 2025
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 1 $ 1
Preferred stock, par value (in USD per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Common stock, par value (in USD per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 150,000,000 150,000,000
Common stock, shares issued (in shares) 72,151,857 72,151,857
Treasury stock, shares (in shares) 23,768,847 22,558,911
v3.26.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Net sales:    
Total Net sales $ 1,495 $ 1,308
Cost of sales:    
Total Cost of sales 753 663
Gross profit 742 645
Operating expenses:    
Selling and marketing 189 161
Research and development 165 151
General and administrative 127 111
Amortization of intangible assets 37 24
Acquisition and integration costs 1 3
Exit and restructuring costs 8 0
Total Operating expenses 527 450
Operating income 215 195
Other (loss) income, net:    
Foreign exchange loss 0 (5)
Interest expense, net (37) (23)
Other expense, net (11) (2)
Total Other expense, net (48) (30)
Income before income tax 167 165
Income tax expense 32 29
Net income $ 135 $ 136
Basic earnings per share (in USD per share) $ 2.74 $ 2.64
Diluted earnings per share (in USD per share) $ 2.72 $ 2.62
Tangible Products    
Net sales:    
Total Net sales $ 1,231 $ 1,062
Cost of sales:    
Total Cost of sales 623 542
Services and Software    
Net sales:    
Total Net sales 264 246
Cost of sales:    
Total Cost of sales $ 130 $ 121
v3.26.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Statement of Comprehensive Income [Abstract]    
Net income $ 135 $ 136
Other comprehensive income, net of tax:    
Changes in unrealized gains (losses) on sales hedging 13 (28)
Foreign currency translation adjustment (19) 7
Comprehensive income $ 129 $ 115
v3.26.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Class A Common Stock
Additional Paid-in Capital
Treasury Stock
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2024   51,506,059        
Beginning balance at Dec. 31, 2024 $ 3,586 $ 1 $ 669 $ (1,900) $ 4,860 $ (44)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuances of treasury shares related to share based-compensation plans, net of forfeitures (in shares)   6,550        
Net share issuances and tax withholding payments related to share-based compensation plans (1)   (1)      
Share-based compensation 51   51      
Repurchase of common stock (in shares)   (374,358)        
Repurchase of common stock (125)     (125)    
Net income 136       136  
Changes in unrealized gains and losses on sales hedging (net of income taxes) (28)         (28)
Foreign currency translation adjustment 7         7
Ending balance (in shares) at Mar. 29, 2025   51,138,251        
Ending balance at Mar. 29, 2025 3,626 $ 1 719 (2,025) 4,996 (65)
Beginning balance (in shares) at Dec. 31, 2025   49,592,946        
Beginning balance at Dec. 31, 2025 3,588 $ 1 814 (2,488) 5,279 (18)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuances of treasury shares related to share based-compensation plans, net of forfeitures (in shares)   84,092        
Net share issuances and tax withholding payments related to share-based compensation plans (5)   (6) 1    
Share-based compensation 58   58      
Repurchase of common stock (in shares)   (1,294,028)        
Repurchase of common stock (300)     (300)    
Net income 135       135  
Changes in unrealized gains and losses on sales hedging (net of income taxes) 13         13
Foreign currency translation adjustment (19)         (19)
Ending balance (in shares) at Apr. 04, 2026   48,383,010        
Ending balance at Apr. 04, 2026 $ 3,470 $ 1 $ 866 $ (2,787) $ 5,414 $ (24)
v3.26.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Cash flows from operating activities:    
Net income $ 135 $ 136
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 56 41
Loss on sale of investments 15 0
Share-based compensation 58 51
Deferred income taxes 0 (23)
Gain on sale of business (5) 0
Other, net 1 1
Changes in operating assets and liabilities:    
Accounts receivable, net 67 84
Inventories, net 34 15
Other assets (12) 3
Accounts payable (119) (76)
Accrued liabilities (67) (110)
Deferred revenue (11) 16
Income taxes 24 42
Other operating activities 0 (2)
Net cash provided by operating activities 176 178
Cash flows from investing activities:    
Acquisition of business 0 (62)
Proceeds from the sale of business 9 0
Purchases of property, plant and equipment (13) (20)
Proceeds from sale of long-term investments 1 0
Other investing activities 1 0
Net cash used in investing activities (2) (82)
Cash flows from financing activities:    
Payments of debt (37) 0
Proceeds from issuance of debt 186 0
Payments for repurchases of common stock (300) (125)
Net payments related to share-based compensation plans (5) (1)
Change in unremitted cash collections from servicing factored receivables (29) 2
Other financing activities 0 5
Net cash used in financing activities (185) (119)
Effect of exchange rate changes on cash and cash equivalents 0 1
Net decrease in cash and cash equivalents (11) (22)
Cash and cash equivalents at beginning of period 125 901
Cash and cash equivalents at end of period 114 879
Supplemental disclosures of cash flow information:    
Income taxes paid 15 9
Interest paid $ 26 $ 16
v3.26.1
Description of Business and Basis of Presentation
 3 Months Ended
Apr. 04, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation Description of Business and Basis of Presentation
Zebra Technologies Corporation and its subsidiaries (“Zebra” or the “Company”) is a global leader focused on digitizing and automating operations and improving enterprise workflows on the frontline in the automatic identification and data capture offerings industry. We design, manufacture, and sell a broad range of offerings, including cloud-based software subscriptions, that capture and move data. We also provide a full range of services, including maintenance, technical support, repair, managed and professional services. End-users of our offerings include those in retail and e-commerce, manufacturing, transportation and logistics, healthcare, hospitality, public sector, and other industries. We provide our offerings globally through a direct sales force and an extensive network of channel partners.

In the fourth quarter of 2025, the Company’s reportable segments changed to Connected Frontline (“CF”) and Asset Visibility & Automation (“AVA”). 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. Historical segment results have been recast to conform with the current period presentation. These changes did not have an impact on our results of operations, cash flows, or financial condition.

Management prepared these unaudited interim consolidated financial statements according to the rules and regulations of the Securities and Exchange Commission for interim financial information and notes. As permitted under Article 10 of Regulation S-X and the instructions of Form 10-Q, these consolidated financial statements do not include all the information and notes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements, although management believes that the disclosures made are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

In the opinion of the Company, these interim financial statements include all adjustments (of a normal, recurring nature) necessary to fairly present its Consolidated Balance Sheet as of April 4, 2026 and the Consolidated Statements of Operations, Comprehensive Income, Stockholders’ Equity, and Cash Flows for the three months ended April 4, 2026 and March 29, 2025. These results, however, are not necessarily indicative of the results expected for the full fiscal year ending December 31, 2026.
v3.26.1
Significant Accounting Policies
 3 Months Ended
Apr. 04, 2026
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
For a discussion of our significant accounting policies, see Note 2, Significant Accounting Policies within Part II, Item 8 “Financial Statements and Supplementary Data” in the Annual Report on Form 10-K for the year ended December 31, 2025. Other than our adoption of Accounting Standards Update (“ASU”) No. 2025-05, there have been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended December 31, 2025.

In the current quarter, the Company adopted ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a prospective practical expedient to assume that current conditions as of the balance sheet date will remain unchanged while estimating the expected credit losses on accounts receivables and contract assets. The Company elected to apply the practical expedient beginning January 1, 2026. This ASU did not have an impact to the Company’s consolidated financial statements.
v3.26.1
Revenues
 3 Months Ended
Apr. 04, 2026
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The Company recognizes revenue to depict the transfer of goods, services, or software solutions to a customer at an amount that reflects the consideration which it expects to receive.

Revenues for tangible products are generally recognized upon shipment, whereas revenues for services are generally recognized over time by using an output or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or over time using a time-based method, depending on how control is transferred to the customer. In cases where a bundle of products, services, and/or software are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control.

Disaggregation of Revenue
The following table presents our Net sales disaggregated by product category for each of our segments (in millions):

Three Months Ended
April 4, 2026March 29, 2025
SegmentTangible ProductsServices and SoftwareTotalTangible ProductsServices and SoftwareTotal
CF$609 $216 $825 $481 $203 $684 
AVA622 48 670 581 43 624 
Total$1,231 $264 $1,495 $1,062 $246 $1,308 

In addition, refer to Note 18, Segment Information & Geographic Data for Net sales to customers by geographic region.

Performance Obligations
The Company’s remaining performance obligations relate to services and software solutions. The aggregate transaction price allocated to remaining performance obligations for arrangements with an original term exceeding one year was $1.15 billion and $1.17 billion, inclusive of deferred revenue, as of April 4, 2026 and December 31, 2025, respectively. On average, remaining performance obligations as of April 4, 2026 and December 31, 2025 are expected to be recognized over a period of approximately two years.

Contract Balances
Progress on satisfying performance obligations under contracts with customers related to billed revenues is reflected on the Consolidated Balance Sheets in Accounts receivable, net. Progress on satisfying performance obligations under contracts with customers related to unbilled revenues (“contract assets”) is reflected on the Consolidated Balance Sheets as Prepaid expenses and other current assets for revenues expected to be billed within the next twelve months, and Other long-term assets for revenues expected to be billed thereafter. The total contract asset balances were $10 million and $12 million as of April 4, 2026 and December 31, 2025, respectively. These contract assets result from timing differences between billing and satisfying performance obligations, inclusive of any impacts from the allocation of the transaction price among performance obligations for contracts that include multiple performance obligations. Contract assets are evaluated for impairment, and no impairment losses have been recognized during the three months ended April 4, 2026 and March 29, 2025, respectively.

Deferred revenue on the Consolidated Balance Sheets consists of payments and billings in advance of our performance. The combined short-term and long-term deferred revenue balances were $832 million and $842 million as of April 4, 2026 and December 31, 2025, respectively. During the three months ended April 4, 2026, the Company recognized $154 million in revenue that was previously included in the deferred revenue balance as of December 31, 2025. During the three months ended March 29, 2025, the Company recognized $141 million in revenue that was previously included in the deferred revenue balance as of December 31, 2024.
v3.26.1
Inventories
 3 Months Ended
Apr. 04, 2026
Inventory Disclosure [Abstract]  
Inventories Inventories
The categories of Inventories, net are as follows (in millions): 
 April 4,
2026		December 31,
2025
Raw materials (1)
$224 $230 
Work in process8 7 
Finished goods460 492 
Total Inventories, net$692 $729 

(1) Raw material inventories primarily consist of product components as well as supplies used in repair operations.
v3.26.1
Business Acquisitions
 3 Months Ended
Apr. 04, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Acquisitions Business Acquisitions
On September 30, 2025, the Company acquired Elo Holdings, Inc. (“Elo Touch”) for $1,303 million. The Company utilized estimated fair values as of the acquisition date to allocate the purchase consideration to the identifiable assets acquired and liabilities assumed. The purchase price allocation remains preliminary as of April 4, 2026 and subject to adjustment during the measurement period, which is up to one year from the acquisition date. No measurement period adjustments were recorded during the quarter ended April 4, 2026. The primary fair value estimates still considered preliminary include intangible assets and income tax-related items.
v3.26.1
Investments
 3 Months Ended
Apr. 04, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
A rollforward of the Company’s long-term investments is as follows (in millions):
Three Months Ended
April 4,
2026		March 29,
2025
Balance at the beginning of the period$103 $110 
Losses on sale of long-term investments(15)— 
Long-term investment acquired in exchange for sale of business9 — 
Proceeds from sale of long-term investments(1)— 
Balance at the end of the period$96 $110 

As further described in Note 7 Exit and Restructuring Activities, the Company acquired a long-term investment in the first quarter of 2026 as part of the consideration received for the sale of its robotics automation business.
The carrying value of the Company’s long-term investments are included in Other long-term assets on the Consolidated Balance Sheets. Net gains and losses are included within Other expense, net on the Consolidated Statements of Operations.
v3.26.1
Exit and Restructuring Activities
 3 Months Ended
Apr. 04, 2026
Restructuring and Related Activities [Abstract]  
Exit and Restructuring Activities Exit and Restructuring Activities
Robotics automation
On March 27, 2026, the Company completed the sale of its robotics automation business to Skild AI. A summary of the net assets sold, consideration received, and resulting net gain, are as follows (in millions):
Consideration received from the sale of business:
Cash$9 
Fair value of long-term investment9 
Fair value of indemnification escrow2 
Total consideration received from the sale of business$20 
Net assets sold:
Allocated goodwill$6 
Identifiable intangible assets (technology)3 
Inventories3 
Other net assets3 
Total net assets sold$15 
Net gain on sale of business$5 

As part of the consideration received, Zebra obtained a minority ownership stake in Skild AI. Approximately $2 million of the sale price is also held in escrow as a reserve for possible indemnity claims. The escrow funds will be released to Zebra after one year less any claims.

The net gain on sale was included within Other expense, net, on the Consolidated Statements of Operations.

2025 Productivity Plan
In the fourth quarter of 2025, the Company committed to organizational design changes intended to better meet its strategic objectives and improve cost efficiency (referred to as the “2025 Productivity Plan”), principally within the Europe, Middle East, and Africa (“EMEA”) and North America regions. One-time costs associated with the 2025 Productivity Plan, which primarily consisted of employee severance and benefits, were $8 million during the three months ended April 4, 2026. Cumulative one-time costs associated with the 2025 Productivity Plan, including those recognized in 2025, are $29 million.

The one-time costs associated with the 2025 Productivity Plan are classified within Exit and restructuring on the Consolidated Statements of Operations.

A rollforward of the liability associated with the Company’s Exit and restructuring activities is as follows (in millions):

Balance as of December 31, 2025$23 
Exit and restructuring charges8
Cash payments(16)
Balance as of April 4, 2026$15 
The Company’s outstanding payment obligations of $15 million associated with the above actions are reflected within Accrued liabilities on the Consolidated Balance Sheets.
v3.26.1
Fair Value Measurements
 3 Months Ended
Apr. 04, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Financial assets and liabilities are measured using inputs from three levels of the fair value hierarchy in accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into the following three broad levels:
•Level 1: Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs (e.g. U.S. Treasuries and money market funds).
•Level 2: Observable prices that are based on inputs not quoted in active markets but corroborated by market data.
•Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs. In addition, the Company considers counterparty credit risk in the assessment of fair value.
The Company’s financial assets and liabilities carried at fair value as of April 4, 2026, are classified below (in millions):
 Level 1Level 2Level 3Total
Assets:
Foreign exchange contracts (1)
$3 $12 $— $15 
Investments related to the deferred compensation plan47 — — 47 
Total Assets at fair value$50 $12 $— $62 
Liabilities:
Liabilities related to the deferred compensation plan$47 $— $— $47 
Total Liabilities at fair value$47 $— $— $47 
The Company’s financial assets and liabilities carried at fair value as of December 31, 2025, are classified below (in millions):
Level 1Level 2Level 3Total
Assets:
Investments related to the deferred compensation plan$48 $— $— $48 
Total Assets at fair value$48 $— $— $48 
Liabilities:
Foreign exchange contracts (1)
$2 $5 $— $7 
Liabilities related to the deferred compensation plan48 — — 48 
Total Liabilities at fair value$50 $5 $— $55 

(1)The fair value of the foreign exchange contracts is calculated as follows:
•Fair value of forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points (Level 2).
•Fair value of hedges against net assets denominated in foreign currencies is calculated at the period-end exchange rate adjusted for current forward points (Level 2). Except, if the hedge has matured but not yet settled as of period end, then the fair value is calculated at the amount at which the hedge is being settled (Level 1).
v3.26.1
Derivative Instruments
 3 Months Ended
Apr. 04, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
In the normal course of business, the Company is exposed to global market risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company commonly uses derivative instruments to manage its exposure to such risks and may elect to designate certain derivatives as hedging instruments under ASC Topic 815, Derivatives and Hedging (“ASC 815”). The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. The Company does not hold or issue derivatives for trading or speculative purposes.

In accordance with ASC 815, the Company recognizes derivative instruments as either assets or liabilities on the Consolidated Balance Sheets and measures them at fair value. The following table presents the fair value of its derivative instruments (in millions):
Asset (Liability)
Fair Values as of
Balance Sheets ClassificationApril 4,
2026		December 31,
2025
Derivative instruments designated as hedges:
    Foreign exchange contractsPrepaid expenses and other current assets$12 $— 
    Foreign exchange contractsAccrued liabilities— (5)
Total derivative instruments designated as hedges$12 $(5)
Derivative instruments not designated as hedges:
    Foreign exchange contractsPrepaid expenses and other current assets$3 $— 
    Foreign exchange contractsAccrued liabilities— (2)
Total derivative instruments not designated as hedges$3 $(2)
Total net derivative asset (liability)$15 $(7)

Activities related to derivative instruments are reflected within Net cash provided by operating activities on the Consolidated Statements of Cash Flows.

Interest Rate Risk Management
The Company is exposed to market risk associated with interest rate payments on its borrowings under a term loan (“Term Loan A”), Revolving Credit Facility, and Receivables Financing Facilities, which bear interest at variable rates plus applicable margins. The Company manages its exposure to changes in interest rates by issuing both fixed and variable rate borrowings as well as periodically utilizing interest rate swaps to economically hedge interest rate exposure based on current and projected market conditions. The Company had no active interest rate swap agreements during the three months ended April 4, 2026 or the year ended December 31, 2025.

Foreign Currency Exchange Risk Management
The Company conducts business on a multinational basis in a variety of foreign currencies. Exposure to market risk for changes in foreign currency exchange rates arises primarily from Euro-denominated external revenues, cross-border financing activities between subsidiaries, and foreign currency denominated monetary assets and liabilities. The Company manages its objective of preserving the economic value of non-functional currency denominated cash flows by initially hedging transaction exposures with natural offsets and, once these opportunities have been exhausted, through foreign exchange forward and option contracts, as deemed appropriate.

The Company manages the exchange rate risk of anticipated Euro-denominated sales using forward contracts, which typically mature within twelve months of execution. The Company designates these derivative contracts as cash flow hedges. Unrealized gains and losses on these contracts are deferred in Accumulated other comprehensive income (loss) (“AOCI”) on the Consolidated Balance Sheets until the contract is settled and the hedged sale is realized. The realized gain or loss is then recorded as an adjustment to Net sales on the Consolidated Statements of Operations. Realized amounts reclassified to Net sales were $7 million of losses and $9 million of gains for the three months ended April 4, 2026 and March 29, 2025, respectively. As of April 4, 2026 and December 31, 2025, the notional amounts of the Company’s foreign exchange cash flow hedges were
€621 million and €582 million, respectively. The Company has reviewed its cash flow hedges for effectiveness and determined that they are highly effective.

The Company uses forward contracts, which are not designated as hedging instruments, to manage its exposures related to net assets denominated in foreign currencies. These forward contracts typically mature within one month after execution. Monetary gains and losses on these forward contracts are recorded in income and are generally offset by the transaction gains and losses related to their net asset positions. Net amounts recognized within Foreign exchange loss were $1 million of gains and $8 million of losses for the three months ended April 4, 2026 and March 29, 2025, respectively. The notional values and the net fair values of these outstanding contracts were as follows (in millions):
 April 4,
2026		December 31,
2025
Notional balance of outstanding contracts:
British Pound/U.S. Dollar£5 £14 
Euro/U.S. Dollar€111 €92 
Euro/Czech Koruna€12 €13 
Japanese Yen/U.S. Dollar¥510 ¥395 
Singapore Dollar/U.S. DollarS$16 S$16 
Mexican Peso/U.S. DollarMex$245 Mex$250 
Polish Zloty/U.S. Dollarzł20 zł71 
Net fair value of assets (liabilities) of outstanding contracts$3 $(2)

Credit and Market Risk Management
Financial instruments, including derivatives, expose the Company to counterparty credit risk of nonperformance and to market risk related to currency exchange rate and interest rate fluctuations. The Company manages its exposure to counterparty credit risk by establishing minimum credit standards, diversifying its counterparties, and monitoring its concentrations of credit. The Company’s counterparties are commercial banks with expertise in derivative financial instruments. The Company evaluates the impact of market risk on the fair value and cash flows of its derivative and other financial instruments by considering reasonably possible changes in interest rates and currency exchange rates. The Company continually monitors the creditworthiness of the customers to which it grants credit terms in the normal course of business. The terms and conditions of the Company’s credit policies are designed to mitigate concentrations of credit risk.

The Company’s master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty. We present the assets and liabilities of our derivative financial instruments, for which we have net settlement agreements in place, on a net basis on the Consolidated Balance Sheets. If the derivative financial instruments had been presented gross on the Consolidated Balance Sheets, the asset and liability positions would not have been significantly different as of April 4, 2026 or December 31, 2025.
v3.26.1
Long-Term Debt
 3 Months Ended
Apr. 04, 2026
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
The following table shows the carrying value of the Company’s debt (in millions):
April 4,
2026		December 31,
2025
Term Loan A$1,553 $1,575 
Senior Notes500 500 
Revolving Credit Facility430 275 
Receivables Financing Facility177 161 
Total debt$2,660 $2,511 
Less: Debt issuance costs(7)(8)
Less: Unamortized discounts(2)(2)
Less: Current portion of debt(264)(141)
Total long-term debt$2,387 $2,361 
As of April 4, 2026, the future maturities of debt are as follows (in millions):
2026 (9 months remaining)$156 
20272,004 
2028— 
2029— 
2030— 
Thereafter500 
Total future maturities of debt$2,660 
All borrowings as of April 4, 2026 were denominated in U.S. Dollars.
The estimated fair value of the Company’s debt approximated $2.7 billion and $2.5 billion as of April 4, 2026 and December 31, 2025, respectively. These fair value amounts, developed based on inputs classified as Level 2 within the fair value hierarchy, represent the estimated value at which the Company’s lenders could trade its debt within the financial markets and do not represent the settlement value of these liabilities to the Company. The fair value of debt will continue to vary each period based on a number of factors, including fluctuations in market interest rates as well as changes to the Company’s credit ratings.

Term Loan A
The principal on Term Loan A is due in quarterly installments, with the next quarterly installment due in the second quarter of 2026 and the majority due upon maturity on May 25, 2027. The Company has made and may make prepayments in whole or in part, without premium or penalty, and would be required to prepay certain outstanding amounts in the event of certain circumstances or transactions. As of April 4, 2026, the Term Loan A interest rate was 5.02%. Interest payments are made monthly and are subject to variable rates plus an applicable margin.

Senior Notes
The Company’s senior unsecured notes (the “Senior Notes”) have a 6.5% fixed interest rate. The Senior Notes mature on June 1, 2032, and interest is payable semi-annually in arrears in June and December of each year. The Company has the option to or could be required to prepay certain outstanding amounts in the event of certain circumstances or transactions.

The Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of Zebra’s existing and future subsidiaries. The Senior Notes contain covenants that, among other things, limit the ability of Zebra to: (i) grant or incur liens; (ii) have its subsidiaries guarantee debt without becoming guarantors; and (iii) merge or consolidate with another company or sell all or substantially all of its assets.

Revolving Credit Facility
The Company has a Revolving Credit Facility that is available for working capital and other general business purposes, including letters of credit. As of April 4, 2026, the Company had letters of credit totaling $10 million, which reduced remaining funds available for borrowings under the Revolving Credit Facility to $1,060 million. As of April 4, 2026, the Revolving Credit Facility had an average interest rate of 5.01%. Interest payments are made monthly and are subject to variable rates plus an applicable margin. The Revolving Credit Facility matures on May 25, 2027.

Receivables Financing Facility
The Company has a Receivables Financing Facility with a borrowing limit of up to $180 million. As collateral, the Company pledges perfected first-priority security interests in its U.S. domestically originated accounts receivable. The Company has accounted for transactions under this facility as secured borrowings. The receivables financing facility matures on March 19, 2027.

As of April 4, 2026, the Company’s Consolidated Balance Sheets included $657 million of gross receivables that were pledged under the facility. Borrowings under the facility bear interest at a variable rate plus an applicable margin. As of April 4, 2026, the facility had an average interest rate of 4.71%. Interest is paid monthly on these borrowings.

The Company’s borrowings described above include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels.

As of April 4, 2026, the Company was in compliance with all debt covenants.
v3.26.1
Leases
 3 Months Ended
Apr. 04, 2026
Leases [Abstract]  
Leases Leases
During the three months ended April 4, 2026, the Company recorded $14 million of right-of-use (“ROU”) assets obtained in exchange for lease obligations primarily related to extensions of existing leases.

Future minimum lease payments under non-cancellable leases as of April 4, 2026 were as follows (in millions):
2026 (9 months remaining)$39 
202745 
202839 
202932 
203025 
Thereafter59 
Total future minimum lease payments$239 
Less: Interest(41)
Present value of lease liabilities$198 
Reported as of April 4, 2026:
Current portion of lease liabilities$40 
Long-term lease liabilities158 
Present value of lease liabilities$198 

The current portion of lease liabilities is included within Accrued liabilities on the Consolidated Balance Sheets.
v3.26.1
Accrued Liabilities, Commitments and Contingencies
 3 Months Ended
Apr. 04, 2026
Commitments and Contingencies Disclosure [Abstract]  
Accrued Liabilities, Commitments and Contingencies Accrued Liabilities, Commitments and Contingencies
Accrued Liabilities
The components of Accrued liabilities are as follows (in millions):
April 4,
2026		December 31,
2025
Payroll and benefits$94 $75 
Incentive compensation72 150 
Customer rebates59 63 
Unremitted cash collections due to banks on factored accounts receivable55 84 
Current portion of lease liabilities40 38 
Current portion of warranty liabilities29 28 
Freight and duty28 26 
Exit and restructuring15 23 
Other67 71 
Accrued liabilities$459 $558 

Warranties
The following table is a summary of the Company’s warranty obligations (in millions):
 Three Months Ended
 April 4,
2026		March 29,
2025
Balance at the beginning of the period$34 $26 
Warranty expense9 8 
Warranties fulfilled(9)(7)
Balance at the end of the period$34 $27 
The current and long-term portions of our warranty obligations are included on the Consolidated Balance Sheets within Accrued liabilities and Other long-term liabilities, respectively.

Contingencies
The Company is subject to a variety of investigations, claims, suits, and other legal proceedings that arise from time to time in the ordinary course of business, including but not limited to, intellectual property, employment, tort, and breach of contract matters. The Company currently believes that the outcomes of such proceedings, individually and in the aggregate, will not have a material adverse impact on its business, cash flows, financial position, or results of operations. Any legal proceedings are subject to inherent uncertainties, and the Company’s view of these matters and their potential effects may change in the future. The Company records a liability for contingencies when a loss is deemed to be probable and the loss can be reasonably estimated.

On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the executive branch of government with the authority to impose tariffs, which invalidated certain import tariffs enacted in 2025. The matter has been remanded to the Court of International Trade and the U.S. Customs and Border Protection for further proceedings, including the administration of potential refunds. The Company previously paid approximately $75 million in IEEPA-related import tariffs and intends to seek refund in accordance with the process prescribed by the U.S. Customers and Border Protection. As the recoverability and timing of any such refund remains uncertain, we have not recognized any recoveries as of April 4, 2026.
v3.26.1
Share-Based Compensation
 3 Months Ended
Apr. 04, 2026
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
The Company issues share-based compensation awards under the Zebra Technologies 2018 Long-Term Incentive Plan (“2018 Plan”), approved by shareholders in 2018, which superseded and replaced all prior share-based incentive plans. Outstanding awards issued prior to the 2018 Plan are governed by the provisions of those plans until such awards have been exercised, forfeited, cancelled, expired, or otherwise terminated in accordance with their terms. Awards available under the 2018 Plan include stock-settled awards, including stock-settled restricted stock units, stock-settled performance stock units, restricted stock awards, performance share awards, stock appreciation rights, incentive stock options, and non-qualified stock options. Awards available under the 2018 Plan also include cash-settled awards, including cash-settled stock appreciation rights, cash-settled restricted stock units, and cash-settled performance stock units.

The Company uses treasury shares as its source for issuing shares under the share-based compensation programs. As of April 4, 2026, the Company had 665,290 shares of Class A Common Stock remaining available to be issued under the 2018 Plan.

The compensation expense from the Company’s share-based compensation plans is included in the Consolidated Statements of Operations as follows (in millions):
Three Months Ended
Compensation costs
April 4, 2026March 29, 2025
Cost of sales$6 $4 
Selling and marketing14 10 
Research and development17 17 
General and administration25 22 
Total compensation expense$62 $53 

As of April 4, 2026, the total unearned compensation cost related to the Company’s share-based compensation plans was $194 million, which will be recognized over the weighted average remaining service period of approximately 1.5 years.

The majority of the Company’s share-based compensation awards are issued as part of its employee and non-employee director incentive program each fiscal year. The Company typically grants the annual employee equity incentive awards in the first quarter and the non-employee director equity awards in the second quarter each year. The Company also issues awards associated with recently acquired companies and other off-cycle events. The majority of the Company’s share-based compensation is comprised of stock-settled awards. Awards granted in 2026 and 2025 include provisions that resulted in accelerated recognition of compensation cost.

Stock-settled awards
The Company’s awards are typically time-vested with stock-settled RSUs vesting ratably in three annual installments and stock-settled PSUs vesting at the end of the three-year period. Upon vesting, stock-settled RSUs and PSUs convert to shares of Class A Common Stock that are released to participants.

Compensation cost is calculated based on the fair market value of the Company’s Class A Common Stock on the grant date multiplied by the number of units granted, net of estimated forfeitures. The expected attainment of the performance goals for the stock-settled PSUs is reviewed at the end of each reporting period, with adjustments recorded to compensation expense in the Consolidated Statements of Operations, as necessary. Certain PSUs granted in 2026 also include market conditions that were considered in the estimation of grant date fair value.

A summary of the Company’s restricted and performance stock-settled awards for the three months ended April 4, 2026 is as follows:
RSUsPSUs

UnitsWeighted-Average Grant Date Fair ValueUnitsWeighted-Average Grant Date Fair Value
Outstanding at beginning of period603,799 $292.35 272,324 $291.28 
Granted409,702 224.12 134,191 227.40 
Released(85,276)306.51 — — 
Forfeited(20,512)293.19 (14,353)301.72 
Outstanding at end of period907,713 $260.10 392,162 $269.00 

Stock Appreciation Rights (“SARs”)
Beginning in 2021, the Company no longer included SARs in its annual share-based compensation award issuances. The intrinsic value of remaining outstanding and exercisable SARs was $9 million as of April 4, 2026. The weighted-average remaining contractual life of SARs was less than 1 year as of April 4, 2026, with all remaining SARs expiring by 2027.

Cash-settled awards
The Company also issues cash-settled share-based compensation awards, including cash-settled restricted stock units and cash-settled performance stock units that are classified as liability awards and typically have a vesting period of three years. Compensation cost is calculated as the fair market value of the Company’s Class A Common Stock on the grant date multiplied by the number of share-equivalents granted, net of forfeitures. The fair value for all cash-settled awards and the expected attainment of the performance goals for the cash-settled performance stock units is reviewed at the end of each reporting period, with adjustments recorded to compensation expense in the Consolidated Statements of Operations, as necessary. The Company’s outstanding payment obligations related to cash-settled awards are reflected within Accrued liabilities on the Consolidated Balance Sheets and were $13 million as of both April 4, 2026 and December 31, 2025. Share-equivalents issued under these programs totaled 62,848 and 52,395 during the three months ended April 4, 2026 and March 29, 2025, respectively.

Employee Stock Purchase Plan
Eligible Zebra employees may purchase common stock at 95% of the fair market value at the date of purchase pursuant to the Zebra Technologies Corporation 2020 Employee Stock Purchase Plan (“2020 ESPP”). Employees may make purchases by cash or payroll deductions up to certain limits. The aggregate number of shares that may be purchased under the 2020 ESPP is 1,500,000 shares. As of April 4, 2026, 1,240,907 shares remained available for future purchase.
v3.26.1
Income Taxes
 3 Months Ended
Apr. 04, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective tax rate for the three months ended April 4, 2026 and March 29, 2025 was 19.2% and 17.6%, respectively. In the current and prior periods, the variance from the 21% federal statutory rate was primarily attributable to U.S. tax credits and the tax benefit related to foreign earnings subject to U.S. taxation, partly offset by foreign rate differential and U.S. state income taxes.
v3.26.1
Earnings Per Share
 3 Months Ended
Apr. 04, 2026
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic net earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of diluted common shares outstanding. Diluted common shares outstanding is computed using the Treasury Stock method and, in periods of income, reflects the additional shares that would be outstanding if dilutive share-based compensation awards were converted into common shares during the period.

Earnings per share (in millions, except share data):
Three Months Ended
April 4,
2026		March 29,
2025
Basic:
Net income$135 $136 
Weighted-average shares outstanding49,017,288 51,365,011 
Basic earnings per share$2.74 $2.64 
Diluted:
Net income$135 $136 
Weighted-average shares outstanding49,017,288 51,365,011 
Dilutive shares411,049 441,539 
Diluted weighted-average shares outstanding49,428,337 51,806,550 
Diluted earnings per share$2.72 $2.62 

Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 316,724 and 52,843 shares that were anti-dilutive for the three months ended April 4, 2026 and March 29, 2025, respectively.
v3.26.1
Accumulated Other Comprehensive (Loss) Income
 3 Months Ended
Apr. 04, 2026
Equity [Abstract]  
Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive (Loss) Income
Stockholders’ equity includes certain items classified as AOCI, including:

•Unrealized gain (loss) on sales hedging which relates to derivative instruments used to hedge the exposure related to currency exchange rates for forecasted Euro sales. These hedges are designated as cash flow hedges, and the Company defers income statement recognition of gains and losses until the hedged transaction occurs. See Note 9, Derivative Instruments for more details.

•Foreign currency translation adjustments which relates to the Company’s non-U.S. subsidiary companies that have designated a functional currency other than the U.S. Dollar. The Company translates the subsidiary functional currency financial statements to U.S. Dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of AOCI.
The changes in each component of AOCI during the three months ended April 4, 2026 and March 29, 2025 were as follows (in millions):
 Unrealized gain (loss) on sales hedgingForeign currency translation adjustmentsTotal
Balance at December 31, 2024$22 $(66)$(44)
Other comprehensive (loss) income before reclassifications(28)7 (21)
Amounts reclassified from AOCI(1)
(9)— (9)
Tax effect9 — 9 
Other comprehensive (loss) income, net of tax(28)7 (21)
Balance at March 29, 2025$(6)$(59)$(65)
Balance at December 31, 2025$(4)$(14)$(18)
Other comprehensive income (loss) before reclassifications10 (19)(9)
Amounts reclassified from AOCI(1)
7 — 7 
Tax effect(4)— (4)
Other comprehensive income (loss), net of tax13 (19)(6)
Balance at April 4, 2026$9 $(33)$(24)
(1) See Note 9, Derivative Instruments regarding the timing of reclassifications to operating results.
v3.26.1
Accounts Receivable Factoring
 3 Months Ended
Apr. 04, 2026
Transfers and Servicing [Abstract]  
Accounts Receivable Factoring Accounts Receivable Factoring
The Company has a Receivables Factoring arrangement, pursuant to which certain receivables originated from the EMEA and Asia-Pacific regions up to a maximum of €150 million are sold to a bank without recourse in exchange for cash. Such transfers are accounted for as sales and the related receivables are removed from the Company’s balance sheet. The Company does not maintain any beneficial interest in the receivables sold. The Company services the receivables on behalf of the bank, but otherwise maintains no significant continuing involvement with respect to the receivables. Sale proceeds that are representative of the fair value of factored receivables, less a factoring fee, are reflected in Cash flows from operating activities on the Consolidated Statements of Cash Flows, while sale proceeds in excess of the fair value of factored receivables are reflected in Cash flows from financing activities on the Consolidated Statements of Cash Flows.

During the three months ended April 4, 2026 and March 29, 2025, the Company received cash proceeds of $160 million and $119 million, respectively, from the sales of accounts receivables under its factoring arrangement. As of April 4, 2026 and December 31, 2025, there were a total of $32 million and $10 million, respectively, of uncollected receivables that had been sold and removed from the Company’s Consolidated Balance Sheets.

As servicer of sold receivables, the Company had $55 million and $84 million of obligations that were not yet remitted to the bank as of April 4, 2026 and December 31, 2025, respectively. These obligations are included within Accrued liabilities on the Consolidated Balance Sheets, with changes in such obligations reflected within Cash flows from financing activities on the Consolidated Statements of Cash Flows.
v3.26.1
Segment Information & Geographic Data
 3 Months Ended
Apr. 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 Ended
April 4,
2026		March 29,
2025
Net sales:
CF$825 $684 
AVA670 624 
Total Net sales$1,495 $1,308 
Cost of sales:
CF$420 $351 
AVA322 308 
Corporate (3)
11 4 
Total Cost of sales$753 $663 
Operating expenses:
CF (1)
$236 $193 
AVA (1)
189 181 
Corporate (3)
102 76 
Total Operating expenses$527 $450 
Operating income:
CF (2)
$169 $140 
AVA (2)
159 135 
Total segment operating income$328 $275 
Corporate (3)
(113)(80)
Total Operating income$215 $195 

(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 Ended
April 4,
2026		March 29,
2025
North America$728 $639 
EMEA507 448 
Asia-Pacific167 137 
Latin America93 84 
Total Net sales$1,495 $1,308 
(1)Certain prior period net sales have been recast to appropriately reflect customer location, with no impact to Zebra’s consolidated net sales.
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Apr. 04, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.26.1
Significant Accounting Policies (Policies)
 3 Months Ended
Apr. 04, 2026
Accounting Policies [Abstract]  
Adopted Accounting Standards Update
In the current quarter, the Company adopted ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a prospective practical expedient to assume that current conditions as of the balance sheet date will remain unchanged while estimating the expected credit losses on accounts receivables and contract assets. The Company elected to apply the practical expedient beginning January 1, 2026. This ASU did not have an impact to the Company’s consolidated financial statements.
Revenues Revenues
The Company recognizes revenue to depict the transfer of goods, services, or software solutions to a customer at an amount that reflects the consideration which it expects to receive.

Revenues for tangible products are generally recognized upon shipment, whereas revenues for services are generally recognized over time by using an output or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or over time using a time-based method, depending on how control is transferred to the customer. In cases where a bundle of products, services, and/or software are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control.
Performance Obligations
The Company’s remaining performance obligations relate to services and software solutions.
Contract Balances
Progress on satisfying performance obligations under contracts with customers related to billed revenues is reflected on the Consolidated Balance Sheets in Accounts receivable, net. Progress on satisfying performance obligations under contracts with customers related to unbilled revenues (“contract assets”) is reflected on the Consolidated Balance Sheets as Prepaid expenses and other current assets for revenues expected to be billed within the next twelve months, and Other long-term assets for revenues expected to be billed thereafter.
Fair Value Measurements Fair Value Measurements
Financial assets and liabilities are measured using inputs from three levels of the fair value hierarchy in accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into the following three broad levels:
•Level 1: Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs (e.g. U.S. Treasuries and money market funds).
•Level 2: Observable prices that are based on inputs not quoted in active markets but corroborated by market data.
•Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs. In addition, the Company considers counterparty credit risk in the assessment of fair value.
Derivative Instruments Derivative Instruments
In the normal course of business, the Company is exposed to global market risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company commonly uses derivative instruments to manage its exposure to such risks and may elect to designate certain derivatives as hedging instruments under ASC Topic 815, Derivatives and Hedging (“ASC 815”). The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. The Company does not hold or issue derivatives for trading or speculative purposes.
In accordance with ASC 815, the Company recognizes derivative instruments as either assets or liabilities on the Consolidated Balance Sheets and measures them at fair value.
v3.26.1
Revenues (Tables)
 3 Months Ended
Apr. 04, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table presents our Net sales disaggregated by product category for each of our segments (in millions):

Three Months Ended
April 4, 2026March 29, 2025
SegmentTangible ProductsServices and SoftwareTotalTangible ProductsServices and SoftwareTotal
CF$609 $216 $825 $481 $203 $684 
AVA622 48 670 581 43 624 
Total$1,231 $264 $1,495 $1,062 $246 $1,308 
v3.26.1
Inventories (Tables)
 3 Months Ended
Apr. 04, 2026
Inventory Disclosure [Abstract]  
Schedule of Categories of Inventories, Net
The categories of Inventories, net are as follows (in millions): 
 April 4,
2026		December 31,
2025
Raw materials (1)
$224 $230 
Work in process8 7 
Finished goods460 492 
Total Inventories, net$692 $729 

(1) Raw material inventories primarily consist of product components as well as supplies used in repair operations.
v3.26.1
Investments (Tables)
 3 Months Ended
Apr. 04, 2026
Investments, Debt and Equity Securities [Abstract]  
Schedule of Long-term Investments
A rollforward of the Company’s long-term investments is as follows (in millions):
Three Months Ended
April 4,
2026		March 29,
2025
Balance at the beginning of the period$103 $110 
Losses on sale of long-term investments(15)— 
Long-term investment acquired in exchange for sale of business9 — 
Proceeds from sale of long-term investments(1)— 
Balance at the end of the period$96 $110 
v3.26.1
Exit and Restructuring Activities (Tables)
 3 Months Ended
Apr. 04, 2026
Restructuring and Related Activities [Abstract]  
Schedule of Net Assets Sold, Consideration Received, and Resulting Net Gain A summary of the net assets sold, consideration received, and resulting net gain, are as follows (in millions):
Consideration received from the sale of business:
Cash$9 
Fair value of long-term investment9 
Fair value of indemnification escrow2 
Total consideration received from the sale of business$20 
Net assets sold:
Allocated goodwill$6 
Identifiable intangible assets (technology)3 
Inventories3 
Other net assets3 
Total net assets sold$15 
Net gain on sale of business$5 
Schedule of Liability Associated With Employee Severance and Other Benefits
A rollforward of the liability associated with the Company’s Exit and restructuring activities is as follows (in millions):

Balance as of December 31, 2025$23 
Exit and restructuring charges8
Cash payments(16)
Balance as of April 4, 2026$15 
v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Apr. 04, 2026
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Carried at Fair Value
The Company’s financial assets and liabilities carried at fair value as of April 4, 2026, are classified below (in millions):
 Level 1Level 2Level 3Total
Assets:
Foreign exchange contracts (1)
$3 $12 $— $15 
Investments related to the deferred compensation plan47 — — 47 
Total Assets at fair value$50 $12 $— $62 
Liabilities:
Liabilities related to the deferred compensation plan$47 $— $— $47 
Total Liabilities at fair value$47 $— $— $47 
The Company’s financial assets and liabilities carried at fair value as of December 31, 2025, are classified below (in millions):
Level 1Level 2Level 3Total
Assets:
Investments related to the deferred compensation plan$48 $— $— $48 
Total Assets at fair value$48 $— $— $48 
Liabilities:
Foreign exchange contracts (1)
$2 $5 $— $7 
Liabilities related to the deferred compensation plan48 — — 48 
Total Liabilities at fair value$50 $5 $— $55 

(1)The fair value of the foreign exchange contracts is calculated as follows:
•Fair value of forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points (Level 2).
•Fair value of hedges against net assets denominated in foreign currencies is calculated at the period-end exchange rate adjusted for current forward points (Level 2). Except, if the hedge has matured but not yet settled as of period end, then the fair value is calculated at the amount at which the hedge is being settled (Level 1).
v3.26.1
Derivative Instruments (Tables)
 3 Months Ended
Apr. 04, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments The following table presents the fair value of its derivative instruments (in millions):
Asset (Liability)
Fair Values as of
Balance Sheets ClassificationApril 4,
2026		December 31,
2025
Derivative instruments designated as hedges:
    Foreign exchange contractsPrepaid expenses and other current assets$12 $— 
    Foreign exchange contractsAccrued liabilities— (5)
Total derivative instruments designated as hedges$12 $(5)
Derivative instruments not designated as hedges:
    Foreign exchange contractsPrepaid expenses and other current assets$3 $— 
    Foreign exchange contractsAccrued liabilities— (2)
Total derivative instruments not designated as hedges$3 $(2)
Total net derivative asset (liability)$15 $(7)
Schedule of Notional Value and Net Fair Value of Outstanding Contracts The notional values and the net fair values of these outstanding contracts were as follows (in millions):
 April 4,
2026		December 31,
2025
Notional balance of outstanding contracts:
British Pound/U.S. Dollar£5 £14 
Euro/U.S. Dollar€111 €92 
Euro/Czech Koruna€12 €13 
Japanese Yen/U.S. Dollar¥510 ¥395 
Singapore Dollar/U.S. DollarS$16 S$16 
Mexican Peso/U.S. DollarMex$245 Mex$250 
Polish Zloty/U.S. Dollarzł20 zł71 
Net fair value of assets (liabilities) of outstanding contracts$3 $(2)
v3.26.1
Long-Term Debt (Tables)
 3 Months Ended
Apr. 04, 2026
Debt Disclosure [Abstract]  
Schedule of Carrying Value of Debt
The following table shows the carrying value of the Company’s debt (in millions):
April 4,
2026		December 31,
2025
Term Loan A$1,553 $1,575 
Senior Notes500 500 
Revolving Credit Facility430 275 
Receivables Financing Facility177 161 
Total debt$2,660 $2,511 
Less: Debt issuance costs(7)(8)
Less: Unamortized discounts(2)(2)
Less: Current portion of debt(264)(141)
Total long-term debt$2,387 $2,361 
Schedule of Future Maturities of Debt
As of April 4, 2026, the future maturities of debt are as follows (in millions):
2026 (9 months remaining)$156 
20272,004 
2028— 
2029— 
2030— 
Thereafter500 
Total future maturities of debt$2,660 
v3.26.1
Leases (Tables)
 3 Months Ended
Apr. 04, 2026
Leases [Abstract]  
Schedule of Future Minimum Lease Payments Under Non-cancellable Operating Leases
Future minimum lease payments under non-cancellable leases as of April 4, 2026 were as follows (in millions):
2026 (9 months remaining)$39 
202745 
202839 
202932 
203025 
Thereafter59 
Total future minimum lease payments$239 
Less: Interest(41)
Present value of lease liabilities$198 
Reported as of April 4, 2026:
Current portion of lease liabilities$40 
Long-term lease liabilities158 
Present value of lease liabilities$198 
v3.26.1
Accrued Liabilities, Commitments and Contingencies (Tables)
 3 Months Ended
Apr. 04, 2026
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Components of Accrued Liabilities
The components of Accrued liabilities are as follows (in millions):
April 4,
2026		December 31,
2025
Payroll and benefits$94 $75 
Incentive compensation72 150 
Customer rebates59 63 
Unremitted cash collections due to banks on factored accounts receivable55 84 
Current portion of lease liabilities40 38 
Current portion of warranty liabilities29 28 
Freight and duty28 26 
Exit and restructuring15 23 
Other67 71 
Accrued liabilities$459 $558 
Schedule of Accrued Warranty Obligations
The following table is a summary of the Company’s warranty obligations (in millions):
 Three Months Ended
 April 4,
2026		March 29,
2025
Balance at the beginning of the period$34 $26 
Warranty expense9 8 
Warranties fulfilled(9)(7)
Balance at the end of the period$34 $27 
v3.26.1
Share-Based Compensation (Tables)
 3 Months Ended
Apr. 04, 2026
Share-Based Payment Arrangement [Abstract]  
Schedule of Compensation Expense
The compensation expense from the Company’s share-based compensation plans is included in the Consolidated Statements of Operations as follows (in millions):
Three Months Ended
Compensation costs
April 4, 2026March 29, 2025
Cost of sales$6 $4 
Selling and marketing14 10 
Research and development17 17 
General and administration25 22 
Total compensation expense$62 $53 
Schedule of Restricted and Performance Stock-settled Awards
A summary of the Company’s restricted and performance stock-settled awards for the three months ended April 4, 2026 is as follows:
RSUsPSUs

UnitsWeighted-Average Grant Date Fair ValueUnitsWeighted-Average Grant Date Fair Value
Outstanding at beginning of period603,799 $292.35 272,324 $291.28 
Granted409,702 224.12 134,191 227.40 
Released(85,276)306.51 — — 
Forfeited(20,512)293.19 (14,353)301.72 
Outstanding at end of period907,713 $260.10 392,162 $269.00 
v3.26.1
Earnings Per Share (Tables)
 3 Months Ended
Apr. 04, 2026
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share
Earnings per share (in millions, except share data):
Three Months Ended
April 4,
2026		March 29,
2025
Basic:
Net income$135 $136 
Weighted-average shares outstanding49,017,288 51,365,011 
Basic earnings per share$2.74 $2.64 
Diluted:
Net income$135 $136 
Weighted-average shares outstanding49,017,288 51,365,011 
Dilutive shares411,049 441,539 
Diluted weighted-average shares outstanding49,428,337 51,806,550 
Diluted earnings per share$2.72 $2.62 
v3.26.1
Accumulated Other Comprehensive (Loss) Income (Tables)
 3 Months Ended
Apr. 04, 2026
Equity [Abstract]  
Schedule of Components of AOCI
The changes in each component of AOCI during the three months ended April 4, 2026 and March 29, 2025 were as follows (in millions):
 Unrealized gain (loss) on sales hedgingForeign currency translation adjustmentsTotal
Balance at December 31, 2024$22 $(66)$(44)
Other comprehensive (loss) income before reclassifications(28)7 (21)
Amounts reclassified from AOCI(1)
(9)— (9)
Tax effect9 — 9 
Other comprehensive (loss) income, net of tax(28)7 (21)
Balance at March 29, 2025$(6)$(59)$(65)
Balance at December 31, 2025$(4)$(14)$(18)
Other comprehensive income (loss) before reclassifications10 (19)(9)
Amounts reclassified from AOCI(1)
7 — 7 
Tax effect(4)— (4)
Other comprehensive income (loss), net of tax13 (19)(6)
Balance at April 4, 2026$9 $(33)$(24)
(1) See Note 9, Derivative Instruments regarding the timing of reclassifications to operating results.
v3.26.1
Segment Information & Geographic Data (Tables)
 3 Months Ended
Apr. 04, 2026
Segment Reporting [Abstract]  
Schedule of Financial Information by Segments
Financial information by segment is presented as follows (in millions):
 Three Months Ended
April 4,
2026		March 29,
2025
Net sales:
CF$825 $684 
AVA670 624 
Total Net sales$1,495 $1,308 
Cost of sales:
CF$420 $351 
AVA322 308 
Corporate (3)
11 4 
Total Cost of sales$753 $663 
Operating expenses:
CF (1)
$236 $193 
AVA (1)
189 181 
Corporate (3)
102 76 
Total Operating expenses$527 $450 
Operating income:
CF (2)
$169 $140 
AVA (2)
159 135 
Total segment operating income$328 $275 
Corporate (3)
(113)(80)
Total Operating income$215 $195 

(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).
Schedule of Net Sales by Region
Net sales by region were as follows (in millions)(1):
Three Months Ended
April 4,
2026		March 29,
2025
North America$728 $639 
EMEA507 448 
Asia-Pacific167 137 
Latin America93 84 
Total Net sales$1,495 $1,308 
(1)Certain prior period net sales have been recast to appropriately reflect customer location, with no impact to Zebra’s consolidated net sales.
v3.26.1
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Disaggregation of Revenue [Line Items]    
Total Net sales $ 1,495 $ 1,308
Tangible Products    
Disaggregation of Revenue [Line Items]    
Total Net sales 1,231 1,062
Services and Software    
Disaggregation of Revenue [Line Items]    
Total Net sales 264 246
CF    
Disaggregation of Revenue [Line Items]    
Total Net sales 825 684
CF | Tangible Products    
Disaggregation of Revenue [Line Items]    
Total Net sales 609 481
CF | Services and Software    
Disaggregation of Revenue [Line Items]    
Total Net sales 216 203
AVA    
Disaggregation of Revenue [Line Items]    
Total Net sales 670 624
AVA | Tangible Products    
Disaggregation of Revenue [Line Items]    
Total Net sales 622 581
AVA | Services and Software    
Disaggregation of Revenue [Line Items]    
Total Net sales $ 48 $ 43
v3.26.1
Revenues - Performance Obligation (Details) - USD ($)
$ in Millions
Apr. 04, 2026
Dec. 31, 2025
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation   $ 1,170
Expected recognition period   2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-05    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation $ 1,150  
Expected recognition period 2 years  
v3.26.1
Revenues - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]      
Contract assets $ 10   $ 12
Deferred revenue 832   $ 842
Revenue recognized which was previously included in deferred revenue $ 154 $ 141  
v3.26.1
Inventories (Details) - USD ($)
$ in Millions
Apr. 04, 2026
Dec. 31, 2025
Inventory Disclosure [Abstract]    
Raw materials $ 224 $ 230
Work in process 8 7
Finished goods 460 492
Total Inventories, net $ 692 $ 729
v3.26.1
Business Acquisitions (Details)
$ in Millions
Sep. 30, 2025
USD ($)
Elo Touch  
Business Combination [Line Items]  
Purchase price $ 1,303
v3.26.1
Investments - Schedule of Long-term Investments (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Dec. 31, 2025
Dec. 31, 2024
Long Term Investments [Roll Forward]        
Balance at the beginning of the period $ 96 $ 110 $ 103 $ 110
Losses on sale of long-term investments (15) 0    
Long-term investment acquired in exchange for sale of business 9 0    
Proceeds from sale of long-term investments (1) 0    
Balance at the end of the period $ 96 $ 110    
v3.26.1
Exit and Restructuring Activities - Schedule of Net Assets Sold, Consideration Received, and Resulting Net Gain (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 27, 2026
Apr. 04, 2026
Mar. 29, 2025
Consideration received from the sale of business:      
Cash   $ 9 $ 0
Net assets sold:      
Net gain on sale of business   $ 5 $ 0
Sale of Business | Robotics Automation      
Consideration received from the sale of business:      
Cash $ 9    
Fair value of long-term investment 9    
Fair value of indemnification escrow 2    
Total consideration received from the sale of business 20    
Net assets sold:      
Allocated goodwill 6    
Identifiable intangible assets (technology) 3    
Inventories 3    
Other net assets 3    
Total net assets sold 15    
Net gain on sale of business $ 5    
v3.26.1
Exit and Restructuring Activities - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 27, 2026
Apr. 04, 2026
Mar. 29, 2025
Dec. 31, 2025
Restructuring Cost and Reserve [Line Items]        
Cumulative one-time costs   $ 8 $ 0 $ 29
Restructuring obligations amount   15   $ 23
2025 Productivity Plan        
Restructuring Cost and Reserve [Line Items]        
Cumulative one-time costs   $ 8    
Sale of Business | Robotics Automation        
Restructuring Cost and Reserve [Line Items]        
Fair value of indemnification escrow $ 2      
v3.26.1
Exit and Restructuring Activities - Schedule of Liability Associated With Exit and Restructuring Activities (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Dec. 31, 2025
Restructuring Reserve [Roll Forward]      
Beginning balance $ 23    
Exit and restructuring charges 8 $ 0 $ 29
Cash payments (16)    
Ending balance $ 15   $ 23
v3.26.1
Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($)
$ in Millions
Apr. 04, 2026
Dec. 31, 2025
Assets:    
Total Assets at fair value $ 62 $ 48
Liabilities:    
Total Liabilities at fair value 47 55
Level 1    
Assets:    
Total Assets at fair value 50 48
Liabilities:    
Total Liabilities at fair value 47 50
Level 2    
Assets:    
Total Assets at fair value 12 0
Liabilities:    
Total Liabilities at fair value 0 5
Level 3    
Assets:    
Total Assets at fair value 0 0
Liabilities:    
Total Liabilities at fair value 0 0
Foreign exchange contracts    
Assets:    
Derivative assets 15  
Liabilities:    
Derivative liabilities   7
Foreign exchange contracts | Level 1    
Assets:    
Derivative assets 3  
Liabilities:    
Derivative liabilities   2
Foreign exchange contracts | Level 2    
Assets:    
Derivative assets 12  
Liabilities:    
Derivative liabilities   5
Foreign exchange contracts | Level 3    
Assets:    
Derivative assets 0  
Liabilities:    
Derivative liabilities   0
Investments related to the deferred compensation plan    
Assets:    
Investments related to the deferred compensation plan 47 48
Investments related to the deferred compensation plan | Level 1    
Assets:    
Investments related to the deferred compensation plan 47 48
Investments related to the deferred compensation plan | Level 2    
Assets:    
Investments related to the deferred compensation plan 0 0
Investments related to the deferred compensation plan | Level 3    
Assets:    
Investments related to the deferred compensation plan 0 0
Liabilities related to the deferred compensation plan    
Liabilities:    
Liabilities related to the deferred compensation plan 47 48
Liabilities related to the deferred compensation plan | Level 1    
Liabilities:    
Liabilities related to the deferred compensation plan 47 48
Liabilities related to the deferred compensation plan | Level 2    
Liabilities:    
Liabilities related to the deferred compensation plan 0 0
Liabilities related to the deferred compensation plan | Level 3    
Liabilities:    
Liabilities related to the deferred compensation plan $ 0 $ 0
v3.26.1
Derivative Instruments - Derivative Instruments (Details) - USD ($)
$ in Millions
Apr. 04, 2026
Dec. 31, 2025
Derivative [Line Items]    
Total net derivative asset (liability) $ 15 $ (7)
Derivative instruments designated as hedges:    
Derivative [Line Items]    
Total net derivative asset (liability) 12 (5)
Derivative instruments designated as hedges: | Prepaid expenses and other current assets | Foreign exchange contracts    
Derivative [Line Items]    
Total assets at fair value 12 0
Derivative instruments designated as hedges: | Accrued liabilities | Foreign exchange contracts    
Derivative [Line Items]    
Total liability at fair value 0 (5)
Derivative instruments not designated as hedges:    
Derivative [Line Items]    
Total net derivative asset (liability) 3 (2)
Derivative instruments not designated as hedges: | Prepaid expenses and other current assets | Foreign exchange contracts    
Derivative [Line Items]    
Total assets at fair value 3 0
Derivative instruments not designated as hedges: | Accrued liabilities | Foreign exchange contracts    
Derivative [Line Items]    
Total liability at fair value $ 0 $ (2)
v3.26.1
Derivative Instruments - Additional Information (Details)
€ in Millions, $ in Millions
 3 Months Ended
Apr. 04, 2026
USD ($)
Mar. 29, 2025
USD ($)
Apr. 04, 2026
EUR (€)
Dec. 31, 2025
EUR (€)
Foreign currency exchange forward | Derivative instruments not designated as hedges:        
Change in unrealized gain (loss) on anticipated sales hedging:        
Maturity period 1 month      
Foreign currency exchange forward | Cash flow hedges | Derivative instruments designated as hedges:        
Change in unrealized gain (loss) on anticipated sales hedging:        
Maturity period 12 months      
(Loss) gain on contract $ (7) $ 9    
Derivative forward long-term interest rate swap | €     € 621 € 582
Foreign exchange contracts | Derivative instruments not designated as hedges:        
Change in unrealized gain (loss) on anticipated sales hedging:        
(Loss) gain on contract $ 1 $ (8)    
v3.26.1
Derivative Instruments - Notional Values and Net Fair Value of Outstanding Contracts (Details) - Derivative instruments not designated as hedges:
€ in Millions, ¥ in Millions, £ in Millions, zł in Millions, $ in Millions, $ in Millions, $ in Millions
Apr. 04, 2026
GBP (£)
Apr. 04, 2026
EUR (€)
Apr. 04, 2026
JPY (¥)
Apr. 04, 2026
SGD ($)
Apr. 04, 2026
MXN ($)
Apr. 04, 2026
PLN (zł)
Apr. 04, 2026
USD ($)
Dec. 31, 2025
GBP (£)
Dec. 31, 2025
EUR (€)
Dec. 31, 2025
JPY (¥)
Dec. 31, 2025
SGD ($)
Dec. 31, 2025
MXN ($)
Dec. 31, 2025
PLN (zł)
Dec. 31, 2025
USD ($)
British Pound/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts | £ £ 5             £ 14            
Euro/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts | €   € 111             € 92          
Euro/Czech Koruna                            
Derivative [Line Items]                            
Notional balance of outstanding contracts | €   € 12             € 13          
Japanese Yen/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts | ¥     ¥ 510             ¥ 395        
Singapore Dollar/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts       $ 16             $ 16      
Mexican Peso/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts         $ 245             $ 250    
Polish Zloty/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts | zł           zł 20             zł 71  
Foreign currency exchange forward                            
Derivative [Line Items]                            
Net fair value of assets (liabilities) of outstanding contracts             $ 3             $ (2)
v3.26.1
Long-Term Debt - Carrying Value of Debt (Details) - USD ($)
$ in Millions
Apr. 04, 2026
Dec. 31, 2025
Debt Instrument [Line Items]    
Total debt $ 2,660 $ 2,511
Less: Debt issuance costs (7) (8)
Less: Unamortized discounts (2) (2)
Less: Current portion of debt (264) (141)
Total long-term debt 2,387 2,361
Revolving Credit Facility    
Debt Instrument [Line Items]    
Total debt 430 275
Term Loan A | Term Loan A    
Debt Instrument [Line Items]    
Total debt 1,553 1,575
Senior Notes | Senior Notes    
Debt Instrument [Line Items]    
Total debt 500 500
Receivables Financing Facility | Receivables Financing Facility    
Debt Instrument [Line Items]    
Total debt $ 177 $ 161
v3.26.1
Long-Term Debt - Future Maturities of Debt (Details)
$ in Millions
Apr. 04, 2026
USD ($)
Debt Disclosure [Abstract]  
2026 (9 months remaining) $ 156
2027 2,004
2028 0
2029 0
2030 0
Thereafter 500
Total future maturities of debt $ 2,660
v3.26.1
Long-Term Debt - Additional Information (Details) - USD ($)
Apr. 04, 2026
Dec. 31, 2025
Debt Instrument [Line Items]    
Estimated fair value debt $ 2,700,000,000 $ 2,500,000,000
Term Loan A | Term Loan A    
Debt Instrument [Line Items]    
Term loan interest rate 5.02%  
Senior Notes | Senior Notes    
Debt Instrument [Line Items]    
Fixed interest rate 6.50%  
A&R Credit Agreement | Revolving Credit Facility    
Debt Instrument [Line Items]    
Letters of credit $ 10,000,000  
Funds available for other borrowing $ 1,060,000,000  
Average interest rate 5.01%  
Receivables Financing Facility | Receivables Financing Facility    
Debt Instrument [Line Items]    
Average interest rate 4.71%  
Total borrowing limits (up to) $ 180,000,000  
Accounts receivable pledged $ 657,000,000  
v3.26.1
Leases - Additional Information (Details)
$ in Millions
 3 Months Ended
Apr. 04, 2026
USD ($)
Leases [Abstract]  
ROU assets obtained in exchange for lease obligations $ 14
v3.26.1
Leases - Future Minimum lease Payments Under Non-cancellable Leases (Details) - USD ($)
$ in Millions
Apr. 04, 2026
Dec. 31, 2025
Leases [Abstract]    
2026 (9 months remaining) $ 39  
2027 45  
2028 39  
2029 32  
2030 25  
Thereafter 59  
Total future minimum lease payments 239  
Less: Interest (41)  
Present value of lease liabilities 198  
Current portion of lease liabilities 40 $ 38
Long-term lease liabilities $ 158 $ 157
v3.26.1
Accrued Liabilities, Commitments and Contingencies - Schedule of Components of Accrued Liabilities (Details) - USD ($)
$ in Millions
Apr. 04, 2026
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]    
Payroll and benefits $ 94 $ 75
Incentive compensation 72 150
Customer rebates 59 63
Unremitted cash collections due to banks on factored accounts receivable 55 84
Current portion of lease liabilities 40 38
Current portion of warranty liabilities 29 28
Freight and duty 28 26
Exit and restructuring 15 23
Other 67 71
Accrued liabilities $ 459 $ 558
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities
v3.26.1
Accrued Liabilities, Commitments and Contingencies - Accrued Warranty Obligations (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]    
Balance at the beginning of the period $ 34 $ 26
Warranty expense 9 8
Warranties fulfilled (9) (7)
Balance at the end of the period $ 34 $ 27
v3.26.1
Accrued Liabilities, Commitments and Contingencies - Additional Information (Details)
$ in Millions
 3 Months Ended
Apr. 04, 2026
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
IEEPA tarrifs paid $ 75
v3.26.1
Share-Based Compensation - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Apr. 04, 2026
Dec. 31, 2025
Mar. 29, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total unearned compensation costs related to performance share awards $ 194    
Total unearned compensation costs amortization period 1 year 6 months    
RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years    
PSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years    
SARs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Outstanding, Aggregate intrinsic value $ 9    
Outstanding, Weighted-average remaining contractual life 1 year    
Cash-settled Awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years    
Share-based liabilities paid $ 13 $ 13  
Number of shares authorized (in shares) 62,848   52,395
2018 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available for grant (in shares) 665,290    
2020 ESPP | Employee Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available for grant (in shares) 1,240,907    
Number of shares authorized (in shares) 1,500,000    
Purchase price equal to lesser of fair market value percentage 95.00%    
v3.26.1
Share-Based Compensation - Schedule of Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total compensation expense $ 62 $ 53
Cost of sales    
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total compensation expense 6 4
Selling and marketing    
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total compensation expense 14 10
Research and development    
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total compensation expense 17 17
General and administration    
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total compensation expense $ 25 $ 22
v3.26.1
Share-Based Compensation - Schedule of Restricted and Performance Stock-settled Awards (Details)
 3 Months Ended
Apr. 04, 2026
$ / shares
shares
RSUs  
Units  
Outstanding at beginning of period (in shares) | shares 603,799
Granted (in shares) | shares 409,702
Released (in shares) | shares (85,276)
Forfeited (in shares) | shares (20,512)
Outstanding at end of period (in shares) | shares 907,713
Weighted-Average Grant Date Fair Value  
Outstanding at beginning of year (in USD per share) | $ / shares $ 292.35
Granted (in USD per share) | $ / shares 224.12
Released (in USD per share) | $ / shares 306.51
Forfeited (in USD per share) | $ / shares 293.19
Outstanding at end of year (in USD per share) | $ / shares $ 260.10
PSUs  
Units  
Outstanding at beginning of period (in shares) | shares 272,324
Granted (in shares) | shares 134,191
Released (in shares) | shares 0
Forfeited (in shares) | shares (14,353)
Outstanding at end of period (in shares) | shares 392,162
Weighted-Average Grant Date Fair Value  
Outstanding at beginning of year (in USD per share) | $ / shares $ 291.28
Granted (in USD per share) | $ / shares 227.40
Released (in USD per share) | $ / shares 0
Forfeited (in USD per share) | $ / shares 301.72
Outstanding at end of year (in USD per share) | $ / shares $ 269.00
v3.26.1
Income Taxes (Details)
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Income Tax Disclosure [Abstract]    
Effective tax rates 19.20% 17.60%
v3.26.1
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Basic:    
Net income $ 135 $ 136
Weighted-average shares outstanding (in shares) 49,017,288 51,365,011
Basic earnings per share (in USD per share) $ 2.74 $ 2.64
Diluted:    
Net income $ 135 $ 136
Weighted-average shares outstanding (in shares) 49,017,288 51,365,011
Dilutive shares (in shares) 411,049 441,539
Diluted weighted-average shares outstanding (in shares) 49,428,337 51,806,550
Diluted earnings per share (in USD per share) $ 2.72 $ 2.62
v3.26.1
Earnings Per Share - Additional Information (Details) - shares
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Earnings Per Share [Abstract]    
Anti-dilutive shares (in shares) 316,724 52,843
v3.26.1
Accumulated Other Comprehensive (Loss) Income - Schedule of Components of AOCI (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
AOCI Attributable to Parent, Net of Tax    
Beginning balance $ 3,588 $ 3,586
Other comprehensive (loss) income before reclassifications (9) (21)
Amounts reclassified from AOCI 7 (9)
Tax effect (4) 9
Other comprehensive (loss) income, net of tax (6) (21)
Ending balance 3,470 3,626
Total    
AOCI Attributable to Parent, Net of Tax    
Beginning balance (18) (44)
Ending balance (24) (65)
Unrealized gain (loss) on sales hedging    
AOCI Attributable to Parent, Net of Tax    
Beginning balance (4) 22
Other comprehensive (loss) income before reclassifications 10 (28)
Amounts reclassified from AOCI 7 (9)
Tax effect (4) 9
Other comprehensive (loss) income, net of tax 13 (28)
Ending balance 9 (6)
Foreign currency translation adjustments    
AOCI Attributable to Parent, Net of Tax    
Beginning balance (14) (66)
Other comprehensive (loss) income before reclassifications (19) 7
Amounts reclassified from AOCI 0 0
Tax effect 0 0
Other comprehensive (loss) income, net of tax (19) 7
Ending balance $ (33) $ (59)
v3.26.1
Accounts Receivable Factoring (Details)
$ in Millions
 3 Months Ended
Apr. 04, 2026
USD ($)
Mar. 29, 2025
USD ($)
Apr. 04, 2026
EUR (€)
Dec. 31, 2025
USD ($)
Transfers and Servicing [Abstract]        
Eligible uncollected receivables available (up to) | €     € 150,000,000  
Proceeds from sale of accounts receivables $ 160 $ 119    
Uncollected receivables sold and removed from the balance sheet 32     $ 10
Unremitted cash collections due to banks on factored accounts receivable $ 55     $ 84
v3.26.1
Segment Information & Geographic Data - Additional Information (Details)
 3 Months Ended
Dec. 31, 2025
segment
Segment Reporting [Abstract]  
Reportable segments 2
v3.26.1
Segment Information & Geographic Data - Schedule of Financial Information by Segment (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Net sales:    
Total Net sales $ 1,495 $ 1,308
Cost of sales:    
Cost of sales: 753 663
Operating expenses:    
Operating expenses: 527 450
Operating income:    
Operating income 215 195
CF    
Net sales:    
Total Net sales 825 684
AVA    
Net sales:    
Total Net sales 670 624
Operating segments    
Operating income:    
Operating income 328 275
Operating segments | CF    
Net sales:    
Total Net sales 825 684
Cost of sales:    
Cost of sales: 420 351
Operating expenses:    
Operating expenses: 236 193
Operating income:    
Operating income 169 140
Operating segments | AVA    
Net sales:    
Total Net sales 670 624
Cost of sales:    
Cost of sales: 322 308
Operating expenses:    
Operating expenses: 189 181
Operating income:    
Operating income 159 135
Corporate    
Cost of sales:    
Cost of sales: 11 4
Operating expenses:    
Operating expenses: 102 76
Operating income:    
Operating income $ (113) $ (80)
v3.26.1
Segment Information & Geographic Data - Schedule of Net Sales by Region (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 04, 2026
Mar. 29, 2025
Segment Reporting Information [Line Items]    
Total Net sales $ 1,495 $ 1,308
North America    
Segment Reporting Information [Line Items]    
Total Net sales 728 639
EMEA    
Segment Reporting Information [Line Items]    
Total Net sales 507 448
Asia-Pacific    
Segment Reporting Information [Line Items]    
Total Net sales 167 137
Latin America    
Segment Reporting Information [Line Items]    
Total Net sales $ 93 $ 84