v3.26.3
Segments and Revenue
 9 Months Ended
Oct. 02, 2026
Segment Reporting [Abstract]  
Segments and Revenue
Note 2: Segments and Revenue

Segments

The Company is organized into three operating and reportable segments consisting of PSG, AMG and ISG. These segments represent management's view of the business for which separate financial information is available and evaluated regularly by the Chief Operating Decision Maker ("CODM"), who is the Company’s Chief Executive Officer. The CODM uses segment gross profit for evaluating product pricing, factory utilization, allocation of capital and the assessment of segment profitability.

Revenue and gross profit for the operating and reportable segments were as follows (in millions):
PSGAMGISGTotal
For the quarter ended October 2, 2026:
Revenue from external customers$889.9 $597.3 $235.1 $1,722.3 
Cost of revenue550.2 297.6 161.5 1,009.3 
Segment gross profit$339.7 $299.7 $73.6 $713.0 
For the quarter ended October 3, 2025:
Revenue from external customers$737.6 $583.3 $230.0 $1,550.9 
Cost of revenue527.4 287.2 149.1 963.7 
Segment gross profit$210.2 $296.1 $80.9 $587.2 
For the nine months ended October 2, 2026:
Revenue from external customers$2,455.5 $1,683.4 $700.2 $4,839.1 
Cost of revenue1,685.1 802.9 438.7 2,926.7 
Segment gross profit$770.4 $880.5 $261.5 $1,912.4 
For the nine months ended October 3, 2025:
Revenue from external customers$2,080.9 $1,705.6 $678.8 $4,465.3 
Cost of revenue1,566.7 826.8 638.9 3,032.4 
Segment gross profit$514.2 $878.8 $39.9 $1,432.9 

The Company had one customer, a distributor, whose revenue accounted for approximately 15% and 12% of total revenue for the quarters ended October 2, 2026 and October 3, 2025, respectively, and approximately 14% and 13% of the total revenue for the nine months ended October 2, 2026 and October 3, 2025, respectively, across all reportable segments. One customer, a distributor, accounted for approximately 11% and 10% of the Company's accounts receivable balance as of October 2, 2026 and December 31, 2025, respectively.
Revenue for the operating and reportable segments disaggregated into geographic locations based on sales billed from the respective country and sales channel was as follows (in millions):
Quarter Ended October 2, 2026
PSGAMGISGTotal
Geographic Location:
Hong Kong$308.3 $203.7 $55.8 $567.8 
Singapore267.0 143.2 26.7 436.9 
United Kingdom156.1 95.3 65.3 316.7 
United States127.5 124.3 42.5 294.3 
Other31.0 30.8 44.8 106.6 
Total$889.9 $597.3 $235.1 $1,722.3 
Sales Channel:
Distributors$598.5 $348.4 $111.7 $1,058.6 
Direct customers291.4 248.9 123.4 663.7 
Total$889.9 $597.3 $235.1 $1,722.3 
Nine Months Ended October 2, 2026
PSGAMGISGTotal
Geographic Location:
Hong Kong$773.6 $478.6 $128.7 $1,380.9 
Singapore665.8 389.4 90.3 1,145.5 
United Kingdom522.1 316.7 224.0 1,062.8 
United States382.9 406.1 102.4 891.4 
Other111.1 92.6 154.8 358.5 
Total$2,455.5 $1,683.4 $700.2 $4,839.1 
Sales Channel:
Distributors$1,575.3 $900.6 $346.2 $2,822.1 
Direct customers880.2 782.8 354.0 2,017.0 
Total$2,455.5 $1,683.4 $700.2 $4,839.1 
Quarter Ended October 3, 2025
PSGAMGISGTotal
Geographic Location:
Hong Kong$225.4 $161.1 $38.4 $424.9 
Singapore177.7 122.1 20.3 320.1 
United Kingdom135.2 104.3 75.5 315.0 
United States140.8 164.6 35.1 340.5 
Other58.5 31.2 60.7 150.4 
Total$737.6 $583.3 $230.0 $1,550.9 
Sales Channel:
Distributors$455.2 $322.0 $118.2 $895.4 
Direct customers282.4 261.3 111.8 655.5 
Total$737.6 $583.3 $230.0 $1,550.9 
Nine Months Ended October 3, 2025
PSGAMGISGTotal
Geographic Location:
Hong Kong$591.8 $462.4 $154.1 $1,208.3 
Singapore502.2 357.3 61.3 920.8 
United Kingdom446.1 329.6 234.2 1,009.9 
United States376.8 441.1 93.1 911.0 
Other164.0 115.2 136.1 415.3 
Total$2,080.9 $1,705.6 $678.8 $4,465.3 
Sales Channel:
Distributors$1,229.7 $901.4 $313.0 $2,444.1 
Direct customers851.2 804.2 365.8 2,021.2 
Total$2,080.9 $1,705.6 $678.8 $4,465.3 

The Company operates in various geographic locations. Sales to external customers have little correlation to where products are manufactured or the location of the end-customer. It is, therefore, not meaningful to present operating profit by geographical location.

Revenue

The Company's revenue is derived primarily from product sales and to a much lesser extent from product development agreements and non-recurring engineering ("NRE") arrangements. For each of the quarters and nine months ended October 2, 2026 and October 3, 2025, revenue recognized from product sales as a percentage of total revenue was approximately 100% and 99%, respectively, and revenue recognized from product development agreements and NRE arrangements was an immaterial amount and 1%, respectively.
Revenue disaggregated by end-markets and product technologies was as follows (in millions):
Quarters EndedNine Months Ended
October 2, 2026October 3, 2025October 2, 2026October 3, 2025
End-Markets:
Automotive$776.7 $787.3 $2,355.3 $2,282.4 
Industrial466.8 426.3 1,306.5 1,232.5 
AI data center180.2 65.6 413.2 179.0 
Other*298.6 271.7 764.1 771.4 
Total$1,722.3 $1,550.9 $4,839.1 $4,465.3 
* Other includes the end-markets of computing, consumer, networking, communications, etc.
Product Technologies:
Intelligent power$918.8 $792.8 $2,531.1 $2,243.1 
Intelligent sensing296.2 284.0 873.5 859.8 
Other507.3 474.1 1,434.5 1,362.4 
Total$1,722.3 $1,550.9 $4,839.1 $4,465.3 

Revenue by end-markets and product technologies is determined using known customer applications and other available information. For certain sales, primarily to distributors, when the ultimate application is not known at the time of sale, these are estimated based on historical trends and other relevant factors.

Remaining Performance Obligations

A portion of the Company's orders are firm commitments that are non-cancellable, including certain orders or contracts with a duration of less than one year. Certain of the Company's customer contracts are multi-year agreements that include committed amounts ("Long-term Supply Agreements" or "LTSAs") for which the remaining performance obligations as of October 2, 2026 were approximately $5.5 billion (excluding the remaining performance obligations for contracts having a duration of one year or less). If products are shipped according to the terms of these contracts, the Company expects to recognize approximately 39% of this amount as revenue over the next 12 months. Total revenue estimates are based on negotiated contract prices and demand quantities, and could be influenced by risks and uncertainties, including manufacturing or supply chain constraints, modifications to customer agreements, and regulatory changes, among other factors. The timing, pricing or amounts of products delivered under LTSAs may be modified or canceled in certain circumstances, and the actual revenue recognized for the remaining performance obligations in future periods may significantly differ from current estimates.

Certain LTSAs include non-cancellable capacity payments from the customer, which are generally due within 30 days of the agreement. These payments reserve production availability or are prepayments for the same purpose and are not recognized as revenue until the performance obligations are satisfied. Payments received in advance of the satisfaction of performance obligations are recorded as contract liabilities. The Company fulfilled certain performance obligations and recognized revenue of $7.5 million and $42.0 million for each of the quarters ended October 2, 2026 and October 3, 2025, respectively, and $35.8 million and $90.4 million for the nine months ended October 2, 2026 and October 3, 2025, respectively, related to contract liabilities outstanding as of the end of each respective prior year.
Contract Balances

Contract assets and contract liabilities were as follows (in millions):
As of
October 2, 2026December 31, 2025
Contract assets included in:
Other current assets$41.7 $47.4 
Contract liabilities included in:
Accrued expenses and other current liabilities$40.8 $51.8 
Other long-term liabilities27.8 69.8 
Total$68.6 $121.6