v3.26.1
Industry Segment Operations
 9 Months Ended
Jul. 26, 2026
Segment Reporting [Abstract]  
Industry Segment Operations Industry Segment Operations
Our two reportable segments are: Semiconductor Systems and Applied Global Services (AGS). Segment information is presented based upon our management organization structure as of July 26, 2026 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to our reportable segments.
The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation.
The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including services, spares and factory automation software for semiconductor and other products.
Effective the first quarter of fiscal 2026, we have moved our 200 millimeter (200mm) equipment business from our AGS segment to our Semiconductor Systems segment. We made this change in order to increase our operational efficiency and consolidate the reporting of our 200mm equipment with the reporting of our other capital equipment used to fabricate semiconductor chips in our Semiconductor Systems segment. In addition, effective in the first quarter of fiscal 2026, we are fully allocating corporate support costs to our reportable segments. Prior-period segment balances have been recast to conform to the current-year presentation.
Our President and Chief Executive Officer is our chief operating decision-maker (CODM). We derive the segment results directly from our internal management reporting system. The accounting policies we use to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics including orders, revenue and operating income. Our CODM regularly reviews segment operating income to evaluate the performance of, and to assign resources to, each of the reportable segments. Actual results are compared to budgeted amounts as part of the CODM’s assessment of each segment’s performance and to make decisions about allocating resources to each segment. Our CODM does not evaluate operating segments using total asset information.
The Other category includes revenues, costs of products and operating expenses from other operating segments that do not meet the requirements for a reportable segment. We do not allocate to our reportable segments charges associated with restructuring actions, such as employee severance costs and asset impairment charges, unless the restructuring actions pertain to a specific reportable segment. Segment operating income also excludes interest income/expense and other financial charges and income taxes. Our CODM does not consider the unallocated costs in measuring the performance of the reportable segments.
Information for each reportable segment for and as of the end of each reporting period was as follows:
Semiconductor SystemsApplied Global ServicesOtherTotal
(In millions, except percentages)
Three Months Ended July 26, 2026
Revenue $7,040 $1,781 $294 $9,115 
Cost of products sold3,148 1,147 234 4,529 
Gross profit$3,892 $634 $60 $4,586 
Gross margin55.3 %35.6 %50.3 %
 Operating expenses:
Research, development and engineering907 31 162 1,100 
Selling, general and administrative328 67 16 411 
Operating income (loss)$2,657 $536 $(118)$3,075 
Operating margin37.7 %30.1 %33.7 %
Depreciation and amortization$105 $17 $29 $151 
Capital expenditures$171 $34 $502 $707 
Balance as of July 26, 2026
Accounts receivable$6,146 $1,348 $197 $7,691 
Inventories$4,408 $1,906 $250 $6,564 
Goodwill$2,691 $983 $199 $3,873 
Semiconductor SystemsApplied Global ServicesOtherTotal
(In millions, except percentages)
Nine Months Ended July 26, 2026
Revenue $18,146 $5,005 $886 $24,037 
Cost of products sold8,196 3,257 616 12,069 
Gross profit$9,950 $1,748 $270 $11,968 
Gross margin54.8 %34.9 %49.8 %
Operating expenses:
Research, development and engineering2,570 69 416 3,055 
Selling, general and administrative951 218 50 1,219 
Legal settlement253 — — 253 
Restructuring charges— — 12 12 
Operating income (loss)$6,176 $1,461 $(208)$7,429 
Operating margin34.0 %29.2 %30.9 %
Depreciation and amortization$287 $47 $79 $413 
Capital expenditures$367 $58 $1,563 $1,988 
Semiconductor SystemsApplied Global ServicesOtherTotal
(In millions, except percentages)
Three Months Ended July 27, 2025
Revenue $5,564 $1,463 $275 $7,302 
Cost of products sold2,594 969 177 3,740 
Gross profit$2,970 $494 $98 $3,562 
Gross margin53.4 %33.8 %48.8 %
 Operating expenses:
Research, development and engineering779 18 104 901 
Selling, general and administrative354 76 (2)428 
Operating income (loss)$1,837 $400 $(4)$2,233 
Operating margin33.0 %27.3 %30.6 %
Depreciation and amortization$82 $13 $18 $113 
Capital expenditures$108 $6 $470 $584 
Balance as of July 27, 2025
Accounts receivable$4,655 $1,140 $(23)$5,772 
Inventories$3,790 $1,811 $206 $5,807 
Goodwill$2,544 $964 $240 $3,748 
Semiconductor SystemsApplied Global ServicesOtherTotal
(In millions, except percentages)
Nine Months Ended July 27, 2025
Revenue $16,562 $4,236 $770 $21,568 
Cost of products sold7,717 2,829 479 11,025 
Gross profit$8,845 $1,407 $291 $10,543 
Gross margin53.4 %33.2 %48.9 %
Operating expenses:
Research, development and engineering2,287 50 316 2,653 
Selling, general and administrative1,079 243 (9)1,313 
Operating income (loss)$5,479 $1,114 $(16)$6,577 
Operating margin33.1 %26.3 %30.5 %
Depreciation and amortization$224 $37 $60 $321 
Capital expenditures$333 $29 $1,113 $1,475 
Semiconductor Systems revenue is recognized at a point in time. AGS revenue is recognized at a point in time for tangible goods such as spare parts and equipment, and over time for service agreements. The majority of revenue recognized over time is recognized within 12 months of the contract inception.
Two customers accounted for approximately 20% and 14%, respectively, of our revenue for the nine months ended July 26, 2026. No other customer accounted for greater than 10% of our revenue for the nine months ended July 26, 2026.
Revenue for Semiconductor Systems by market for the periods presented was as follows:
Three Months EndedNine Months Ended
July 26,
2026		July 27,
2025		July 26,
2026		July 27,
2025
Foundry, logic and other67 %69 %65 %68 %
Dynamic random-access memory (DRAM)26 %22 %29 %25 %
Flash memory (NAND)7 %9 %6 %7 %
100 %100 %100 %100 %
Revenue by geographic region, determined by the location of customers’ facilities to which products were shipped and services were performed, was as follows:
Three Months EndedNine Months Ended
July 26,
2026		July 27,
2025		ChangeJuly 26,
2026		July 27,
2025		Change
(In millions, except percentages)
China$2,506 28 %$2,548 35 %(2)%$6,688 28 %$6,565 30 %2 %
Korea1,521 17 %1,160 16 %31 %4,551 19 %4,389 20 %4 %
Taiwan2,025 22 %1,843 25 %10 %5,902 25 %5,023 23 %17 %
Japan839 9 %713 10 %18 %1,987 8 %1,825 9 %9 %
Southeast Asia374 4 %195 3 %92 %894 4 %616 3 %45 %
Asia Pacific7,265 80 %6,459 89 %12 %20,022 84 %18,418 85 %9 %
United States1,367 15 %683 9 %100 %2,964 12 %2,408 11 %23 %
Europe483 5 %160 2 %202 %1,051 4 %742 4 %42 %
Total$9,115 100 %$7,302 100 %25 %$24,037 100 %$21,568 100 %11 %