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Disaggregated Revenue, Geographic Information, Concentrations of Risk, and Segment Reporting
 3 Months Ended
Oct. 02, 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 Company’s disaggregated net revenue by end market is as follows:
Three Months Ended
October 2,
2026		October 3,
2025
(in millions)
Net revenue by end market
Cloud$3,868 $2,510 
Client320 146 
Consumer193 162 
Total net revenue$4,381 $2,818 
Net revenue by geography(1)
Americas$2,081 $1,100 
Asia1,708 1,175 
Europe, Middle East and Africa592 543 
Total net revenue$4,381 $2,818 
(1)    Net revenue is attributed to geographic regions based on the ship-to location of the customer.

Beginning in the three months ended October 2, 2026, the Company updated its methodology for identifying customers for purposes of revenue concentration disclosure. Under the updated methodology, concentrations are attributed to the ultimate end customer when products are purchased on its behalf by distributors, contract manufacturers, or other resellers (collectively referred to as “intermediary purchasers”), rather than being attributed to such intermediary purchasers. The Company believes this presentation provides investors with a more meaningful reflection of the Company’s economic relationship with its customers. Prior year concentrations have been revised to conform to the current year presentation.

The Company’s top 10 customers accounted for 64% of its net revenue for the three months ended October 2, 2026, compared to 73% of its net revenue for the three months ended October 3, 2025. For the three months ended October 2, 2026, two customers accounted for 14% and 13%, respectively, of the Company’s net revenue. For the three months ended October 3, 2025, four customers accounted for 16%, 13%, 13% and 12%, respectively, of the Company’s net revenue.

As of October 2, 2026 and July 3, 2026, net accounts receivable were $2.23 billion and $2.03 billion, respectively, and reserves for potential credit losses were not material. As of October 2, 2026, three customers accounted for 21%, 14%, and 12%, respectively, of the Company’s net accounts receivable, and as of July 3, 2026, two customers accounted for 25% and 17%, respectively, of the Company’s net accounts receivable.
Segment Reporting

The Company’s Chief Executive Officer 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 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
October 2,
2026		October 3,
2025
(in millions)
Revenue, net
$4,381 $2,818 
Less: Significant expenses and other segment items
Cost of revenue(1)
1,837 1,581 
Research and development(1)
261 270 
Selling, general and administrative(1)
130 111 
Stock-based compensation79 53 
Business realignment charges
27 3 
Interest expense, net
4 42 
Gain on retained interest in Sandisk— (611)
Other expense, net8 2 
Other segment items(2)
(3)30 
Income tax expense259 155 
Net income$1,779 $1,182 
(1)    Excludes amounts related to stock-based compensation, which are presented separately in the table above.
(2)    Other segment items include activity from strategic investments and other small charges.