Disaggregated Revenue, Geographic Information, Concentrations of Risk, and Segment Reporting

9 Months Ended

Apr. 03, 2026

Segment Reporting [Abstract]

Disaggregated Revenue, Geographic Information, Concentrations of Risk, and Segment Reporting

Disaggregated Revenue, Geographic Information, Concentrations of Risk, and Segment Reporting

The following table summarizes the Company’s disaggregated revenue:

	Three Months Ended				Nine Months Ended
	April 3, 2026		March 28, 2025		April 3, 2026		March 28, 2025
	(in millions)
Revenue by end market
Cloud	$	2,972	$	2,007	$	8,155	$	6,012
Client	179		137		501		416
Consumer	186		150		516		487
Total revenue	$	3,337	$	2,294	$	9,172	$	6,915
Revenue by geography(1)
Americas	$	1,499	$	1,182	$	3,890	$	3,468
Asia	1,320		753		3,612		2,349
Europe, Middle East and Africa	518		359		1,670		1,098
Total revenue	$	3,337	$	2,294	$	9,172	$	6,915

(1)    Net revenue is attributed to geographic regions based on the ship-to location of the customer.

The Company’s top 10 customers accounted for 71% and 74%, respectively, of its net revenue for the three and nine months ended April 3, 2026, compared to 73% and 68%, respectively, of its net revenue for the three and nine months ended March 28, 2025. For the three months ended April 3, 2026, three customers accounted for 17%, 15%, and 11%, respectively, of the Company’s net revenue, and for the nine months ended April 3, 2026, three customers accounted for 16%, 15%, and 13%, respectively, of the Company’s net revenue. For the three months ended March 28, 2025, three customers accounted for 18%, 16%, and 13%, respectively, of the Company’s net revenue, and for the nine months ended March 28, 2025, two customers accounted for 18% and 11%, respectively, of the Company’s net revenue.

As of April 3, 2026 and June 27, 2025, net accounts receivable were $1.89 billion and $1.49 billion, respectively, and reserves for potential credit losses were not material. As of April 3, 2026, two customers accounted for 28% and 12%, respectively, of the Company’s net accounts receivable, and as of June 27, 2025, three customers accounted for 20%, 19%, and 12%, respectively, of the Company’s net accounts receivable.

Segment Reporting

The Company’s Chief Executive Officer, Irving Tan, is the Company’s Chief Operating Decision Maker (“CODM”). The CODM manages the business as a provider of data storage devices and solutions based on HDD technology. The CODM evaluates the performance of the Company and makes decisions regarding the allocation of resources based on the Company’s Net income from continuing operations and Total assets. The Company has therefore, determined that it has one reportable segment: HDD.

The following table is a reconciliation of the Company’s measure of segment profit or loss, significant segment expenses and other segment items:

	Three Months Ended				Nine Months Ended
	April 3, 2026		March 28, 2025		April 3, 2026		March 28, 2025
	(in millions)
Revenue, net	$	3,337	$	2,294	$	9,172	$	6,915
Less: Significant expenses and other segment items
Cost of revenue(1)	1,653		1,374		4,860		4,243
Research and development(1)	272		228		807		680
Selling, general and administrative(1)	125		96		343		398
Litigation matter	—		(207)		—		(179)
Business realignment charges	40		—		95		(7)
Stock-based compensation	53		35		159		122
Interest expense, net	26		81		110		257
(Gain) loss on retained interest in Sandisk	(2,734)		606		(4,448)		606
Costs in connection with debt-for-equity exchange	545		—		545		—
Other expense (income), net	(2)		3		3		5
Other segment items(2)	—		4		40		7
Income tax expense (benefit)	154		(698)		429		(608)
Net income from continuing operations	$	3,205	$	772	$	6,229	$	1,391

(1)    Excludes amounts related to stock-based compensation and other segment items which are presented separately in the table above.

(2)    Other segment items include activity from strategic investments and other charges.