v3.26.3
Segment and Other Information
 12 Months Ended
Sep. 03, 2026
Segment Reporting [Abstract]  
Segment and Other Information Segment and Other Information
Segment information reported herein is consistent with the way our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), assesses the performance of our segments based on segment revenue, cost of goods sold, operating expenses, and operating income. The segment information reported herein is regularly provided to and reviewed and evaluated by our CODM to budget, forecast, and decide how to allocate resources for capital investments, human capital, and other strategic investments across our segments.

We have the following four business units, which are our reportable segments:

•Cloud Memory Business Unit (“CMBU”): Focused on memory solutions for large hyperscale cloud customers, and HBM for all data center customers.
•Core Data Center Business Unit (“CDBU”): Focused on storage solutions for all data center customers, including data center SSDs and NAND components, and memory solutions for OEM data center, enterprise, and NeoCloud customers.
•Mobile and Client Business Unit (“MCBU”): Focused on memory and storage solutions for the mobile and client segments.
•Automotive and Embedded Business Unit (“AEBU”): Focused on memory and storage solutions for the automotive, industrial, and consumer segments.

Our other operations do not meet the thresholds of a reportable segment and are reported under All Other. Certain operating expenses directly associated with the activities of a specific segment are charged to that segment. Other indirect operating income and expenses are generally allocated to segments based on their respective percentage of cost of goods sold or forecasted wafer production. Certain income and expenses are not allocated to segments because our CODM does not consider these amounts in the assessment of the performance of our segments. The unallocated amounts consisted primarily of stock-based compensation. Additionally, the unallocated amounts included $500 million of patent license charges in other operating (income) expense, net in 2026 and a $987 million benefit in cost of goods sold in 2024 from the sale of inventories that had been written down to their net realizable value in 2023.
For the year ended 2026CMBUCDBU
MCBU
AEBUAll Other
Unallocated
Total
Revenue$43,085 $37,592 $36,601 $15,886 $24 $— $133,188 
Cost of goods sold8,802 6,031 6,413 3,891 19 528 25,684 
Gross margin34,283 31,561 30,188 11,995 5 (528)107,504 
Research and development2,510 1,648 550 443 1 498 5,650 
Selling, general, and administrative549 374 430 335 — 259 1,947 
Other operating (income) expense, net(1)— — — 2 566 567 
Operating income$31,225 $29,539 $29,208 $11,217 $2 $(1,851)$99,340 

For the year ended 2025CMBUCDBU
MCBU
AEBUAll Other
Unallocated
Total
Revenue$13,524 $7,229 $11,859 $4,753 $13 $— $37,378 
Cost of goods sold5,867 3,995 8,650 3,566 14 413 22,505 
Gross margin7,657 3,234 3,209 1,187 (1)(413)14,873 
Research and development1,315 864 836 435 — 348 3,798 
Selling, general, and administrative213 188 390 195 — 219 1,205 
Other operating (income) expense, net— 2 2 — — 96 100 
Operating income$6,129 $2,180 $1,981 $557 $(1)$(1,076)$9,770 

For the year ended 2024CMBUCDBU
MCBU
AEBUAll Other
Unallocated
Total
Revenue$3,792 $4,984 $11,667 $4,631 $37 $— $25,111 
Cost of goods sold2,677 3,638 10,222 3,598 20 (657)19,498 
Gross margin1,115 1,346 1,445 1,033 17 657 5,613 
Research and development769 960 994 425 — 282 3,430 
Selling, general, and administrative107 139 485 186 (1)213 1,129 
Other operating (income) expense, net(5)(8)(33)(10)— (194)(250)
Operating income$244 $255 $(1)$432 $18 $356 $1,304 

Depreciation and amortization expense included in operating income was as follows:
For the year ended
202620252024
CMBU$3,335 $2,260 $1,112 
CDBU2,237 1,530 1,434 
MCBU2,490 3,177 3,762 
AEBU1,431 1,375 1,447 
All Other6 5 7 
Unallocated4 5 18 
$9,503 $8,352 $7,780 
We do not identify or report internally our assets (other than goodwill) or capital expenditures by segment, nor do we allocate gains and losses from equity method investments, interest, other non-operating income or expense items, or taxes to segments. As of September 3, 2026 and August 28, 2025, CMBU, CDBU, MCBU, and AEBU had goodwill of $654 million, $109 million, $284 million, and $103 million, respectively.