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Industry Segment Operations
 9 Months Ended
Jul. 27, 2025
Segment Reporting [Abstract]  
Industry Segment Operations Industry Segment Operations
Our three reportable segments are: Semiconductor Systems, Applied Global Services (AGS), and Display. As defined under the accounting literature, our chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. Segment information is presented based upon our management organization structure as of July 27, 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 reportable segment includes semiconductor capital equipment to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, advanced wafer packaging, and ion implantation.
The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, 200mm and other equipment and factory automation software for semiconductor, display and other products.
The Display segment includes products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), equipment upgrades and other display technologies for TVs, monitors, laptops, personal computers, smart phones, other consumer-oriented devices and solar energy cells.
Each operating segment is separately managed and has separate financial results that are reviewed by our chief operating decision-maker. Each reportable segment contains closely related products that are unique to the particular segment. Segment operating income is determined based upon internal performance measures used by our chief operating decision-maker. The chief operating decision-maker does not evaluate operating segments using total asset information.
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 net revenue and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments.
The Corporate and Other category includes revenues and costs of products not included in our reportable segments, as well as certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. These operating expenses include costs related to certain management, finance, legal, human resources, and research, development and engineering functions provided at the corporate level; and unabsorbed information technology and occupancy. In addition, we do not allocate to our reportable segments severance, asset impairment and any associated charges related to restructuring actions, unless these actions pertain to a specific reportable segment. Segment operating income also excludes interest income/expense and other financial charges and income taxes. Management does not consider the unallocated costs in measuring the performance of the reportable segments.
Net revenue and operating income (loss) for each reportable segment were as follows:
Three Months EndedNine Months Ended
Net RevenueOperating
Income (Loss)		Net RevenueOperating
Income (Loss)
 (In millions)
July 27, 2025:
Semiconductor Systems$5,427 $1,966 $16,038 $5,852 
Applied Global Services1,600 445 4,760 1,338 
Display263 62 705 144 
Corporate and Other12 (240)65 (757)
Total$7,302 $2,233 $21,568 $6,577 
July 28, 2024:
Semiconductor Systems$4,924 $1,712 $14,734 $5,157 
Applied Global Services1,580 467 4,586 1,320 
Display251 16 674 46 
Corporate and Other23 (253)137 (702)
Total$6,778 $1,942 $20,131 $5,821 
Semiconductor Systems and Display revenues are 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 19% and 15%, respectively, of our net revenue for the nine months ended July 27, 2025. No other customer accounted for greater than 10% of our net revenue for the nine months ended July 27, 2025.
Details of goodwill by reportable segment as of July 27, 2025 and October 27, 2024 were as follows:
 
 July 27,
2025		October 27,
2024
 (In millions)
Goodwill by reportable segment
Semiconductor Systems$2,476 $2,460 
Applied Global Services1,032 1,032 
Display199 199 
Corporate and Other41 41 
$3,748 $3,732 

From time to time, we acquire companies related to our existing or new markets. During the first nine months of fiscal 2025, goodwill increased primarily due to the preliminary purchase accounting for an acquisition, net of adjustments, which was not material to our results of operations or to our balance sheet.
Net 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 EndedNine Months Ended
 July 27,
2025		July 28,
2024		ChangeJuly 27,
2025		July 28,
2024		Change
 (In millions, except percentages)
China$2,548 35 %$2,153 32 %18 %$6,565 30 %$7,981 40 %(18)%
Korea1,160 16 %1,102 16 %5 %4,389 20 %3,321 16 %32 %
Taiwan1,843 25 %1,148 17 %61 %5,023 23 %2,726 14 %84 %
Japan713 10 %555 8 %28 %1,825 9 %1,573 8 %16 %
Southeast Asia195 3 %428 6 %(54)%616 3 %827 4 %(26)%
Asia Pacific6,459 89 %5,386 79 %20 %18,418 85 %16,428 82 %12 %
United States683 9 %1,053 16 %(35)%2,408 11 %2,665 13 %(10)%
Europe160 2 %339 5 %(53)%742 4 %1,038 5 %(29)%
Total$7,302 100 %$6,778 100 %8 %$21,568 100 %$20,131 100 %7 %

Net revenue for Semiconductor Systems by market for the periods presented were as follows:
Three Months EndedNine Months Ended
July 27,
2025		July 28,
2024		July 27,
2025		July 28,
2024
Foundry, logic and other69 %72 %67 %66 %
Dynamic random-access memory (DRAM)22 %24 %26 %30 %
Flash memory (NAND)9 %4 %7 %4 %
100 %100 %100 %100 %

The reconciling items included in Corporate and Other were as follows: 

Three Months EndedNine Months Ended
July 27,
2025		July 28,
2024		July 27,
2025		July 28,
2024
 (In millions)
Unallocated net revenue$12 $23 $65 $137 
Unallocated cost of products sold and expenses(252)(276)(822)(839)
Total$(240)$(253)$(757)$(702)