v3.26.3
Segment and Other Information
 12 Months Ended
Aug. 28, 2026
Segment Reporting [Abstract]  
Segment and Other Information
Segment and Other Information
Segment information presented below is consistent with how our Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, evaluates our results of operations to make decisions about allocating resources and assessing performance using segment net sales, cost of sales, operating expenses, and operating income (loss).
The CODM is regularly provided this segment information to assess relative segment performance and allocate resources to the segment in the annual planning process.
We have the following three business units, which are our reportable segments:
•Advanced Computing: Our Advanced Computing segment delivers AI infrastructure solutions that help customers design, build, deploy, and manage next-generation AI data centers. Through our Full-Stack AI Factory Platform, we combine advanced compute systems, differentiated infrastructure software, and end-to-end services with industry-leading partner technologies. We also offer high-availability and fault-tolerant computing solutions under our Stratus brand for customers requiring continuous availability and reliable operations in data center and edge environments.
•Integrated Memory: Our Integrated Memory segment designs, develops, and delivers advanced memory and storage solutions that address performance, capacity, and reliability requirements across AI infrastructure, high-performance computing, networking, and enterprise applications. Our portfolio includes specialty memory and storage products sold under our SMART Modular Technologies brand, including DRAM modules, solid-state and flash storage solutions, and CXL-based memory expansion technologies. The segment also provides SMART Supply Chain Services, offering customized supply chain planning and execution solutions that help customers improve operational efficiency, reduce costs, and increase productivity.
•Optimized LED: Our Optimized LED segment, under our Cree LED brand, offers a broad portfolio of application-optimized LEDs focused on improving lumen density, intensity, efficacy, optical control and/or reliability. Backed by expert design assistance and superior sales support, our Optimized LED products enable our customers to develop and market LED-based products for lighting, video displays and specialty lighting applications.
Segments are determined based on sources of sales, types of customers and operating performance.
There are no differences between the accounting policies for our segment reporting and our consolidated results of operations. Operating expenses directly associated with the activities of a specific segment are charged to that segment. Certain other indirect operating income and expenses are generally allocated to segments based on their respective percentage of net sales. We do not identify (other than goodwill) or report internally our assets nor allocate certain expenses and amortization, interest, other non-operating (income) expense or taxes to segments.
August 28, 2026
Advanced ComputingIntegrated MemoryOptimized LEDTotal
Net sales:$558,789 $924,001 $248,678 $1,731,468 
Less:
Costs of goods sold392,605 666,936 164,065 1,223,606 
Operating expense127,877 72,123 66,900 266,900 
Segment operating income:$38,307 $184,942 $17,713 $240,962 
Reconciliation of income before taxes
Stock-based compensation expense
(31,815)
Amortization of acquisition-related intangibles(29,469)
Cost of sales-related restructuring483 
Diligence, acquisition and integration expense(1,916)
Restructuring charges(11,240)
Other
(1,409)
Total unallocated(75,366)
Total non-operating expense
(13,673)
Income before taxes$151,923 
August 29, 2025
Advanced ComputingIntegrated MemoryOptimized LEDTotal
Net sales:$648,417 $464,249 $256,128 $1,368,794 
Less:
Costs of goods sold404,032 362,612 177,550 944,194 
Operating expense129,376 57,998 69,574 256,948 
Segment operating income:$115,009 $43,639 $9,004 $167,652 
Reconciliation of income before taxes
Stock-based compensation expense
(41,176)
Amortization of acquisition-related intangibles(34,838)
Cost of sales-related restructuring(746)
Diligence, acquisition and integration expense(1,829)
Redomiciliation costs(10,038)
Impairment of goodwill(16,063)
Restructuring charges(2,098)
Other
(2,729)
Total unallocated(109,517)
Total non-operating expense
(9,234)
Income before taxes$48,901 
August 30, 2024
Advanced ComputingIntegrated MemoryOptimized LEDTotal
Net sales:$554,552 $356,426 $259,818 $1,170,796 
Less:
Costs of goods sold324,152 283,821 188,838 796,811 
Operating expense135,109 50,192 68,427 253,728 
Segment operating income:$95,291 $22,413 $2,553 $120,257 
Reconciliation of loss before taxes
Stock-based compensation expense
(43,160)
Amortization of acquisition-related intangibles(39,272)
Cost of sales-related restructuring(2,136)
Diligence, acquisition and integration expense(8,772)
Redomiciliation costs(470)
Restructuring charges(7,064)
Other(1,088)
Total unallocated(101,962)
Total non-operating expense
(49,462)
Loss before taxes$(31,167)
Depreciation included in segment operating income was as follows:
Year endedAugust 28,
2026		August 29,
2025		August 30,
2024
Advanced Computing$7,053 $7,946 $9,495 
Integrated Memory4,405 4,053 3,873 
Optimized LED8,342 8,580 12,352 
$19,800 $20,579 $25,720