v3.25.3
Segment and Other Information
 3 Months Ended
Nov. 27, 2025
Segment Reporting [Abstract]  
Segment and Other Information Segment and Other Information
Segment information reported herein is consistent with the way our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), assesses the performance of our segments based on segment revenue, cost of goods sold, operating expenses, and operating income. The segment information reported herein is regularly provided to and reviewed and evaluated by our CODM to budget, forecast, and decide how to allocate resources for capital investments, human capital, and other strategic investments across our segments.

We have the following four business units, which are based on market segments and our reportable segments:

•Cloud Memory Business Unit (“CMBU”): Focused on memory solutions for large hyperscale cloud customers, and HBM for all data center customers.
•Core Data Center Business Unit (“CDBU”): Focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers.
•Mobile and Client Business Unit (“MCBU”): Focused on memory and storage solutions for the mobile and client segments.
•Automotive and Embedded Business Unit (“AEBU”): Focused on memory and storage solutions for the automotive, industrial, and consumer segments.

Our other operations do not meet the thresholds of a reportable segment and are reported under All Other. Certain operating expenses directly associated with the activities of a specific segment are charged to that segment. Other indirect operating income and expenses are generally allocated to segments based on their respective percentage of cost of goods sold or forecasted wafer production. Certain income and expenses are not allocated to segments because our CODM does not consider these amounts in the assessment of the performance of our segments. The unallocated amounts primarily include stock-based compensation. We do not identify or report internally our assets (other than goodwill) or capital expenditures by segment, nor do we allocate gains and losses from equity method investments, interest, other non-operating income or expense items, or taxes to segments.

Three months ended November 27, 2025
CMBUCDBU
MCBU
AEBUAll Other
Unallocated
Total
Revenue$5,284 $2,379 $4,255 $1,720 $5 $— $13,643 
Cost of goods sold1,817 1,157 1,970 942 4 107 5,997 
Gross margin3,467 1,222 2,285 778 1 (107)7,646 
Research and development500 291 176 97 — 107 1,171 
Selling, general, and administrative83 41 92 54 — 67 337 
Other operating (income) expense, net— — — — — 2 2 
Operating income
$2,884 $890 $2,017 $627 $1 $(283)$6,136 

Three months ended November 28, 2024CMBUCDBU
MCBU
AEBUAll Other
Unallocated
Total
Revenue$2,648 $2,292 $2,608 $1,158 $3 $— $8,709 
Cost of goods sold1,293 1,149 1,899 922 5 93 5,361 
Gross margin1,355 1,143 709 236 (2)(93)3,348 
Research and development252 218 234 108 (1)77 888 
Selling, general, and administrative37 54 96 50 1 50 288 
Other operating (income) expense, net— — — — (2)— (2)
Operating income
$1,066 $871 $379 $78 $— $(220)$2,174 
The table below presents the unallocated amounts:
Three months endedNovember 27,
2025		November 28,
2024
Unallocated
Cost of goods sold:
Stock-based compensation$107 $90 
Other
— 3 
107 93 
Research and development:
Stock-based compensation106 77 
Other
1 — 
107 77 
Selling, general, and administrative:
Stock-based compensation67 50
Other operating (income) expense, net:
Other2 — 
2 — 
Total unallocated amounts
$283 $220 

Depreciation and amortization expense included in operating income was as follows:
Three months endedNovember 27,
2025		November 28,
2024
CMBU$725 $511 
CDBU432 422 
MCBU709 708 
AEBU344 384 
All Other1 1 
Unallocated1 4 
$2,212 $2,030 

Revenue from one customer was 17% and 13% (primarily included in the CMBU segment) of total revenue for the first three months of 2026 and 2025, respectively.

As of November 27, 2025 and August 28, 2025, CMBU, CDBU, MCBU, and AEBU had goodwill of $654 million, $109 million, $284 million, and $103 million, respectively.