v3.26.3
Geographic Information and Concentrations of Risk
 3 Months Ended
Oct. 02, 2026
Revenue from Contract with Customer [Abstract]  
Geographic Information and Concentrations of Risk 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 original equipment manufacturers (“OEMs”) 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 presence around the world.
The Company’s disaggregated revenue information was as follows:
Three Months Ended
October 2,
2026		October 3,
2025
(in millions)
Revenue by end market:
Datacenter$4,802 $269 
Edge5,832 1,387 
Consumer397 652 
Total revenue$11,031 $2,308 
Revenue by geography:
Asia$7,216 $1,515 
Americas3,257 406 
Europe, Middle East and Africa558 387 
Total revenue $11,031 $2,308 
The Company sells its products to computer manufacturers and OEMs, cloud service providers, resellers, distributors and retailers throughout the world. For the three months ended October 2, 2026, two separate customers accounted for more than 10% of the Company’s net revenue, amounting to 12% each. For the three months ended October 3, 2025, no customer accounted for more than 10% of the Company’s net revenue.
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 October 2, 2026 and July 3, 2026.
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 three months ended October 2, 2026 and October 3, 2025.
Contract liabilities relate to customer payments in advance of performance under the contract and primarily include remaining performance obligations under the Company’s long-term customer agreements, which we refer to as New Business Models (“NBMs”). Total contract liabilities as of October 2, 2026, were $1.5 billion. The contract liabilities as of July 3, 2026 were $1.2 billion, of which $281 million were recognized as revenue during the three months ended October 2, 2026. The increase in contract liabilities during the period was driven by new NBMs.
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 October 2, 2026 were $1.6 billion. The refund liabilities as of July 3, 2026 were $1.5 billion.
NBMs may include terms requiring the customer to establish and maintain collateral with third-party financial institutions. The Company’s right to access such off-balance sheet collateral is contingent upon the occurrence of specified events of default or breach by the customer under the applicable NBM. As the Company does not control the underlying funds and has no unconditional right to them unless and until such an event occurs, no amounts related to these collateral balances have been recognized in the Company’s Condensed Consolidated Financial Statements as of October 2, 2026 and July 3, 2026. The aggregate amount of collateral issued or held by third-party financial institutions was $12.8 billion as of October 2, 2026, representing the maximum potential proceeds available to the Company in the event of customer default or breach.
As of October 2, 2026, the transaction price allocated to remaining performance obligations was $88.9 billion, of which $87.4 billion has not yet been billed and $1.5 billion has been recorded as contract liabilities. Approximately 20% 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.