v3.26.1
Revenues
 12 Months Ended
Jul. 03, 2026
Revenue from Contract with Customer [Abstract]  
Revenues Geographic Information and Concentrations of Risk
Disaggregated Revenue
The Company’s broad portfolio of technology and products addresses multiple end markets. Datacenter represents a large and growing end market comprised primarily of products for public or private cloud environments and enterprise customers. Through the Edge end market, the Company provides its OEM and channel customers a broad array of high-performance flash solutions across personal computer, mobile, gaming, automotive, physical AI, at-home entertainment, and industrial spaces. The Consumer end market is highlighted by the Company’s broad range of retail and other end-user products, which capitalize on the strength of the Company’s product brand recognition and vast points of presence around the world.
The Company’s disaggregated revenue information was as follows:
202620252024
(in millions)
Revenue by end market:
Datacenter$5,153 $960 $325 
Edge12,160 4,127 4,069 
Consumer2,935 2,268 2,269 
Total revenue$20,248 $7,355 $6,663 
The Company’s operations outside the United States include owned manufacturing facilities in Malaysia, manufacturing operations contracted via related parties in China and Japan, as well as sales offices throughout the Americas, Asia Pacific, Europe and the Middle East. The following tables summarize the Company’s operations by geographic area:
202620252024
(in millions)
Net Revenue(1)
United States$3,714 $1,447 $933 
China4,503 2,040 2,549 
Hong Kong5,126 1,301 1,044 
Rest of Asia4,612 1,116 917 
Europe, Middle East and Africa1,732 1,280 1,058 
Other561 171 162 
Total revenue$20,248 $7,355 $6,663 
(1)Net revenue is attributed to geographic regions based on the ship-to location of the customer. License and royalty revenue, which is immaterial, is attributed to countries based upon the location of the headquarters of the licensee.
Disaggregated Long-lived Assets
The Company’s long-lived assets, including property, plant and equipment by geographic area, are as follows:
20262025
(in millions)
Long-lived assets
United States$100 $93 
China14 14 
Malaysia445 398 
Rest of Asia73 67 
Europe, Middle East and Africa42 47 
Total long-lived assets$674 $619 
Customer Concentration and Credit Risk
The Company sells its products to computer manufacturers and OEMs, cloud service providers, resellers, distributors and retailers throughout the world. For 2026, 2025 and 2024, no single customer accounted for more than 10% of the Company’s net revenue. For 2026, 2025, and 2024, the Company’s top 10 customers accounted for 44%, 40% and 41% of the Company’s net revenue, respectively.
The Company performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral. The Company maintains allowances for potential credit losses, and such losses have historically been within management’s expectations. At any given point in time, the total amount outstanding from any one of a number of its customers may be individually significant to the Company’s financial results. As of July 3, 2026, the Company had net accounts receivable of $4.7 billion and three customers accounted for approximately 19%, 12% and 10%, respectively, of the Company’s outstanding accounts receivable. As of June 27, 2025, the Company had net accounts receivable of $1.1 billion, and one customer accounted for 11% of the Company’s outstanding accounts receivable. Reserves for potential credit losses were not material as of each period end.
The Company also has cash equivalent and investment policies that limit the amount of credit exposure to any one financial institution or investment instrument and requires that investments be made only with financial institutions or in investment instruments evaluated as highly credit-worthy.
Supplier Concentration
All of the Company’s flash products require silicon wafers for the memory and controller components. All of the Company’s flash memory wafers are currently supplied from Flash Ventures, and the Company’s controller wafers are all manufactured by third-party sources. The failure of any of these sources to deliver silicon wafers could have a material adverse effect on the Company’s business, financial condition and results of operations. See Note 10, Related Parties and Related Commitments and Contingencies for additional disclosures.
In addition, some key components are purchased from single-source vendors for which alternative sources are currently not available. Shortages could occur in these essential materials due to an interruption of supply or increased demand in the industry. If the Company was unable to procure certain of such materials, the Company’s sales could decline, which could have a material adverse effect upon its results of operations. The Company also relies on third-party subcontractors to assemble and test a portion of its products. The Company does not have long-term contracts with some of these subcontractors and cannot directly control product delivery schedules or manufacturing processes. This could lead to product shortages or quality assurance problems that could increase the manufacturing costs of the Company’s products and have material adverse effects on the Company’s operating results.
Revenue
Contract assets represent the Company’s right to consideration where performance obligations are completed but the customer payments are not due until another performance obligation is satisfied. The Company had no contract assets as of July 3, 2026 and June 27, 2025.
The Company incurs sales commissions as direct incremental costs to obtain sales contracts. The Company has applied the practical expedient to recognize sales commissions as an expense when incurred if the amortization period is expected to be one year or less, with these costs charged to Selling, general and administrative expenses. Direct incremental costs to obtain contracts with an expected benefit of more than one year were not material for the fiscal year ended July 3, 2026.
Contract liabilities relate to customer payments in advance of performance under the contract and primarily include remaining performance obligations under NBMs. Total contract liabilities as of July 3, 2026, were $1,242 million. The contract liabilities as of June 27, 2025 were $25 million, of which $23 million were recognized as revenue during the year ended July 3, 2026. The increase in contract liabilities during the period was driven by customer advances associated with NBMs entered into during the period.
Refund liabilities relate to consideration received that is expected to be refunded to the customer, following their satisfaction of all performance conditions, and primarily include security deposits collected under NBMs that must be refunded at the end of the contract term. Total refund liabilities as of July 3, 2026 were $1,500 million. The refund liabilities as of June 27, 2025 were $126 million. The increase in refund liabilities during the period was driven by security deposits associated with NBMs entered into during the period ended July 3, 2026.
NBMs may include terms requiring the customer to establish and maintain collateral with third-party financial institutions. The Company’s right to access such collateral is contingent upon the occurrence of specified events of default or
breach by the customer, as defined in the underlying NBM. As of July 3, 2026, no amounts have been recognized in the Company’s Consolidated Financial Statements related to these collateral balances, as the Company does not control the underlying funds or have an unconditional right to the funds unless and until a specified customer default or breach event occurs. The aggregate amount of collateral issued or held by third-party financial institutions was $5.0 billion as of July 3, 2026, representing the maximum potential proceeds available to the Company in the event of customer default or breach.
As of July 3, 2026, the transaction price allocated to remaining performance obligations was $59.8 billion, of which $58.7 billion has not yet been billed and $1.1 billion has been recorded as contract liabilities. Approximately 19% of the remaining performance obligations from these contracts with customers are expected to be recognized as revenue over the next twelve months. The remaining performance obligations are entirely related to NBMs.
The Company applies the practical expedient and does not disclose the transaction price allocated to the remaining performance obligations for (i) arrangements with an original expected duration of one year or less, and (ii) variable consideration for sale-based or usage-based royalties for intellectual property license arrangements, which typically range longer than one year.