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Industry Segment Operations | 12 Months Ended
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Oct. 26, 2025
Segment Reporting [Abstract] |
Industry Segment Operations | Industry Segment Operations Our two reportable segments are: Semiconductor Systems and Applied Global Services (AGS). The Display operating segment financial results were included in the Corporate and Other category balances below, as management no longer considers the Display operating segment a significant operating segment for separate reporting purposes. Segment information is presented based upon our management organization structure as of October 26, 2025 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 spares, upgrades, services, 200 millimeter and other equipment and factory automation software for semiconductor and other products. 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, net 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 Corporate and Other category includes revenues, costs of products and operating expenses from other operating segments that do not meet the requirements for a reportable segment. Corporate and Other also includes certain corporate function operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. In addition, 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 fiscal year were as follows:
| Semiconductor Systems |  | Applied Global Services |  |  |  | Corporate and Other |  | Total |  |  |  |
| (In millions, except percentages)
2025: |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue | $ | 20,798 |  |  | $ | 6,385 |  |  |  |  | $ | 1,185 |  |  | $ | 28,368 |  |  |  |  |
Costs of products sold | 9,530 |  |  | 4,251 |  |  |  |  | 779 |  |  | 14,560 |  |  |  |  |
Gross profit | $ | 11,268 |  |  | $ | 2,134 |  |  |  |  | $ | 406 |  |  | $ | 13,808 |  |  |  |  |
Gross margin | 54.2 | % |  | 33.4 | % |  |  |  |  |  | 48.7 | % |  |  |  |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Research, development and engineering | 3,042 |  |  | 126 |  |  |  |  | 402 |  |  | 3,570 |  |  |  |  |
Selling, general and administrative | 847 |  |  | 216 |  |  |  |  | 705 |  |  | 1,768 |  |  |  |  |
Restructuring charges | — |  |  | — |  |  |  |  | 181 |  |  | 181 |  |  |  |  |
Operating income (loss) | $ | 7,379 |  |  | $ | 1,792 |  |  |  |  | $ | (882) |  |  | $ | 8,289 |  |  |  |  |
Operating margin | 35.5 | % |  | 28.1 | % |  |  |  |  |  | 29.2 | % |  |  |  |
Depreciation and amortization | $ | 192 |  |  | $ | 26 |  |  |  |  | $ | 217 |  |  | $ | 435 |  |  |  |  |
Capital expenditures | $ | 507 |  |  | $ | 57 |  |  |  |  | $ | 1,696 |  |  | $ | 2,260 |  |  |  |  |
Accounts receivable | $ | 3,733 |  |  | $ | 1,269 |  |  |  |  | $ | 183 |  |  | $ | 5,185 |  |  |  |  |
Inventories | $ | 3,444 |  |  | $ | 2,301 |  |  |  |  | $ | 170 |  |  | $ | 5,915 |  |  |  |  |
Goodwill | $ | 2,476 |  |  | $ | 1,032 |  |  |  |  | $ | 199 |  |  | $ | 3,707 |  |  |  |  |
| Semiconductor Systems |  | Applied Global Services |  |  |  | Corporate and Other |  | Total |  |  |  |
| (In millions, except percentages)
2024 |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue | $ | 19,911 |  |  | $ | 6,225 |  |  |  |  | $ | 1,040 |  |  | $ | 27,176 |  |  |  |  |
Costs of products sold | 9,379 |  |  | 4,088 |  |  |  |  | 812 |  |  | 14,279 |  |  |  |  |
Gross profit | $ | 10,532 |  |  | $ | 2,137 |  |  |  |  | $ | 228 |  |  | $ | 12,897 |  |  |  |  |
Gross margin | 52.9 | % |  | 34.3 | % |  |  |  |  |  | 47.5 | % |  |  |  |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Research, development and engineering | 2,684 |  |  | 114 |  |  |  |  | 435 |  |  | 3,233 |  |  |  |  |
Selling, general and administrative | 867 |  |  | 211 |  |  |  |  | 719 |  |  | 1,797 |  |  |  |  |
Operating income (loss) | $ | 6,981 |  |  | $ | 1,812 |  |  |  |  | $ | (926) |  |  | $ | 7,867 |  |  |  |  |
Operating margin | 35.1 | % |  | 29.1 | % |  |  |  |  |  | 28.9 | % |  |  |  |
Depreciation and amortization | $ | 168 |  |  | $ | 22 |  |  |  |  | $ | 202 |  |  | $ | 392 |  |  |  |  |
Capital expenditures | $ | 425 |  |  | $ | 35 |  |  |  |  | $ | 730 |  |  | $ | 1,190 |  |  |  |  |
Accounts receivable | $ | 3,816 |  |  | $ | 1,297 |  |  |  |  | $ | 121 |  |  | $ | 5,234 |  |  |  |  |
Inventories | $ | 2,988 |  |  | $ | 2,306 |  |  |  |  | $ | 127 |  |  | $ | 5,421 |  |  |  |  |
Goodwill | $ | 2,460 |  |  | $ | 1,032 |  |  |  |  | $ | 240 |  |  | $ | 3,732 |  |  |  |  |
| Semiconductor Systems |  | Applied Global Services |  |  |  | Corporate and Other |  | Total |  |  |  |
| (In millions, except percentages)
2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue | $ | 19,698 |  |  | $ | 5,732 |  |  |  |  | $ | 1,087 |  |  | $ | 26,517 |  |  |  |  |
Costs of products sold | 9,456 |  |  | 3,911 |  |  |  |  | 766 |  |  | 14,133 |  |  |  |  |
Gross profit | $ | 10,242 |  |  | $ | 1,821 |  |  |  |  | $ | 321 |  |  | $ | 12,384 |  |  |  |  |
Gross margin | 52.0 | % |  | 31.8 | % |  |  |  |  |  | 46.7 | % |  |  |  |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Research, development and engineering | 2,544 |  |  | 101 |  |  |  |  | 457 |  |  | 3,102 |  |  |  |  |
Selling, general and administrative | 819 |  |  | 191 |  |  |  |  | 618 |  |  | 1,628 |  |  |  |  |
Operating income (loss) | $ | 6,879 |  |  | $ | 1,529 |  |  |  |  | $ | (754) |  |  | $ | 7,654 |  |  |  |  |
Operating margin | 34.9 | % |  | 26.7 | % |  |  |  |  |  | 28.9 | % |  |  |  |
Depreciation and amortization | $ | 235 |  |  | $ | 31 |  |  |  |  | $ | 249 |  |  | $ | 515 |  |  |  |  |
Capital expenditures | $ | 381 |  |  | $ | 39 |  |  |  |  | $ | 686 |  |  | $ | 1,106 |  |  |  |  |
Accounts receivable | $ | 3,943 |  |  | $ | 1,111 |  |  |  |  | $ | 111 |  |  | $ | 5,165 |  |  |  |  |
Inventories | $ | 3,433 |  |  | $ | 2,073 |  |  |  |  | $ | 219 |  |  | $ | 5,725 |  |  |  |  |
Goodwill | $ | 2,460 |  |  | $ | 1,032 |  |  |  |  | $ | 240 |  |  | $ | 3,732 |  |  |  |  |
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. During fiscal 2025, goodwill decreased primarily due to impairment charges recognized during the fourth quarter of fiscal 2025, partially offset by an increase related to preliminary purchase accounting for an acquisition which was not material to our results of operations or to our balance sheet. During fiscal 2025, two customers accounted for approximately 19% and 15%, respectively, of our net revenue. During fiscal 2024, two customers accounted for approximately 12% and 11%, respectively, of our net revenue. During fiscal 2023, two customers accounted for approximately 19% and 15%, respectively, of our net revenue. Net revenue for Semiconductor Systems by market for the periods indicated were as follows:
| 2025 |  | 2024 |  | 2023
Foundry, logic and other | 67 | % |  | 68 | % |  | 77 | %
Dynamic random-access memory (DRAM) | 26 | % |  | 28 | % |  | 17 | %
Flash memory (NAND) | 7 | % |  | 4 | % |  | 6 | %
| 100 | % |  | 100 | % |  | 100 | %
For geographical reporting, revenue by geographic location is determined by the location of customers’ facilities to which products were shipped and services were performed. Long-lived assets consist primarily of property, plant and equipment and right-of-use assets and are attributed to the geographic location in which they are located. Net revenue and long-lived assets by geographic region for and as of each fiscal year were as follows:
| 2025 |  | 2024 |  | 2023
| (In millions)
Net revenue: |  |  |  |  |
United States | $ | 3,063 |  |  | $ | 3,818 |  |  | $ | 4,006 |
China | 8,529 |  |  | 10,117 |  |  | 7,247 |
Korea | 5,608 |  |  | 4,493 |  |  | 4,609 |
Taiwan | 6,857 |  |  | 4,010 |  |  | 5,670 |
Japan | 2,273 |  |  | 2,154 |  |  | 2,075 |
Europe | 962 |  |  | 1,443 |  |  | 2,152 |
Southeast Asia | 1,076 |  |  | 1,141 |  |  | 758 |
Total outside United States | 25,305 |  |  | 23,358 |  |  | 22,511 |
Consolidated total | $ | 28,368 |  |  | $ | 27,176 |  |  | $ | 26,517 |
| October 26, 2025 |  | October 27, 2024 |  |
| (In millions)
Long-lived assets: |  |  |  |  |
United States | $ | 5,071 |  |  | $ | 3,759 |  |  |
China | 8 |  |  | 3 |  |  |
Korea | 9 |  |  | 9 |  |  |
Taiwan | 67 |  |  | 59 |  |  |
Japan | 6 |  |  | 7 |  |  |
Europe | 155 |  |  | 113 |  |  |
Southeast Asia | 21 |  |  | 5 |  |  |
Total outside United States | 266 |  |  | 196 |  |  |
Consolidated total | $ | 5,337 |  |  | $ | 3,955 |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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