v3.26.1
Industry Segment Operations
 6 Months Ended
Apr. 26, 2026
Segment Reporting [Abstract]  
Industry Segment Operations Industry Segment Operations
Our two reportable segments are: Semiconductor Systems and Applied Global Services (AGS). Segment information is presented based upon our management organization structure as of April 26, 2026 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 services, spares and factory automation software for semiconductor and other products.
Effective the first quarter of fiscal 2026, we have moved our 200 millimeter (200mm) equipment business from our AGS segment to our Semiconductor Systems segment. We made this change in order to increase our operational efficiency and consolidate the reporting of our 200mm equipment with the reporting of our other capital equipment used to fabricate semiconductor chips in our Semiconductor Systems segment. In addition, effective in the first quarter of fiscal 2026, we are fully allocating corporate support costs to our reportable segments. Prior-period segment balances have been recast to conform to the current-year presentation.
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, 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 Other category includes revenues, costs of products and operating expenses from other operating segments that do not meet the requirements for a reportable segment. 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 reporting period was as follows:
Semiconductor SystemsApplied Global ServicesOtherTotal
 (In millions, except percentages)
Three Months Ended April 26, 2026
Revenue $5,965 $1,665 $280 $7,910 
Cost of products sold2,701 1,088 174 3,963 
Gross profit$3,264 $577 $106 $3,947 
Gross margin54.7 %34.7 %49.9 %
 Operating expenses:
Research, development and engineering865 20 142 1,027 
Selling, general and administrative307 70 20 397 
Operating income (loss)$2,092 $487 $(56)$2,523 
Operating margin35.1 %29.2 %31.9 %
Depreciation and amortization$101 $16 $18 $135 
Capital expenditures$120 $14 $501 $635 
Balance as of April 26, 2026
Accounts receivable$4,820 $1,265 $287 $6,372 
Inventories$4,309 $1,852 $182 $6,343 
Goodwill$2,661 $964 $199 $3,824 
Semiconductor SystemsApplied Global ServicesOtherTotal
 (In millions, except percentages)
Six Months Ended April 26, 2026
Revenue $11,106 $3,224 $592 $14,922 
Cost of products sold5,048 2,110 382 7,540 
Gross profit$6,058 $1,114 $210 $7,382 
Gross margin54.5 %34.5 %49.5 %
Operating expenses:
Research, development and engineering1,663 38 254 1,955 
Selling, general and administrative623 151 34 808 
Legal settlement253 — — 253 
Restructuring charges— — 12 12 
Operating income (loss)$3,519 $925 $(90)$4,354 
Operating margin31.7 %28.7 %29.2 %
Depreciation and amortization$182 $30 $50 $262 
Capital expenditures$196 $24 $1,061 $1,281 
Semiconductor SystemsApplied Global ServicesOtherTotal
 (In millions, except percentages)
Three Months Ended April 27, 2025
Revenue $5,401 $1,420 $279 $7,100 
Cost of products sold2,512 944 159 3,615 
Gross profit$2,889 $476 $120 $3,485 
Gross margin53.5 %33.5 %49.1 %
 Operating expenses:
Research, development and engineering774 18 101 893 
Selling, general and administrative345 80 (2)423 
Operating income (loss)$1,770 $378 $21 $2,169 
Operating margin32.8 %26.6 %30.5 %
Depreciation and amortization$73 $12 $18 $103 
Capital expenditures$118 $19 $373 $510 
Balance as of April 27, 2025
Accounts receivable$4,925 $1,159 $103 $6,187 
Inventories$3,666 $1,804 $186 $5,656 
Goodwill$2,544 $964 $240 $3,748 
Semiconductor SystemsApplied Global ServicesOtherTotal
 (In millions, except percentages)
Six Months Ended April 27, 2025
Revenue $10,998 $2,773 $495 $14,266 
Cost of products sold5,123 1,860 302 7,285 
Gross profit$5,875 $913 $193 $6,981 
Gross margin53.4 %32.9 %48.9 %
Operating expenses:
Research, development and engineering1,508 32 212 1,752 
Selling, general and administrative725 167 (7)885 
Operating income (loss)$3,642 $714 $(12)$4,344 
Operating margin33.1 %25.7 %30.5 %
Depreciation and amortization$142 $24 $42 $208 
Capital expenditures$225 $23 $643 $891 
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.
Two customers accounted for approximately 21% and 15%, respectively, of our revenue for the six months ended April 26, 2026. No other customer accounted for greater than 10% of our revenue for the six months ended April 26, 2026.
Revenue for Semiconductor Systems by market for the periods presented were as follows:
Three Months EndedSix Months Ended
April 26,
2026		April 27,
2025		April 26,
2026		April 27,
2025
Foundry, logic and other67 %66 %65 %68 %
Dynamic random-access memory (DRAM)29 %27 %31 %27 %
Flash memory (NAND)4 %7 %4 %5 %
100 %100 %100 %100 %
Revenue by geographic region, determined by the location of customers’ facilities to which products were shipped and services were performed, was as follows:
Three Months EndedSix Months Ended
 April 26,
2026		April 27,
2025		ChangeApril 26,
2026		April 27,
2025		Change
 (In millions, except percentages)
China$2,087 27 %$1,774 25 %18 %$4,182 28 %$4,017 28 %4 %
Korea1,572 20 %1,562 22 %1 %3,030 20 %3,229 23 %(6)%
Taiwan2,155 27 %1,997 28 %8 %3,877 26 %3,180 22 %22 %
Japan623 8 %572 8 %9 %1,148 8 %1,112 8 %3 %
Southeast Asia185 2 %135 2 %37 %520 3 %421 3 %24 %
Asia Pacific6,622 84 %6,040 85 %10 %12,757 85 %11,959 84 %7 %
United States941 12 %808 11 %16 %1,597 11 %1,725 12 %(7)%
Europe347 4 %252 4 %38 %568 4 %582 4 %(2)%
Total$7,910 100 %$7,100 100 %11 %$14,922 100 %$14,266 100 %5 %