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Industry Segment Operations
 12 Months Ended
Oct. 26, 2025
Segment Reporting [Abstract]  
Industry Segment Operations Industry Segment Operations    
Our two reportable segments are: Semiconductor Systems and Applied Global Services (AGS). The Display operating segment financial results were included in the Corporate and Other category balances below, as management no longer considers the Display operating segment a significant operating segment for separate reporting purposes. Segment information is presented based upon our management organization structure as of October 26, 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 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 spares, upgrades, services, 200 millimeter and other equipment and factory automation software for semiconductor and other products.
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, net 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 Corporate and Other category includes revenues, costs of products and operating expenses from other operating segments that do not meet the requirements for a reportable segment. Corporate and Other also includes certain corporate function operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. In addition, 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 fiscal year were as follows:
Semiconductor SystemsApplied Global ServicesCorporate and OtherTotal
 (In millions, except percentages)
2025:
Net revenue $20,798 $6,385 $1,185 $28,368 
Costs of products sold9,530 4,251 779 14,560 
Gross profit$11,268 $2,134 $406 $13,808 
Gross margin54.2 %33.4 %48.7 %
Operating expenses:
Research, development and engineering3,042 126 402 3,570 
Selling, general and administrative847 216 705 1,768 
Restructuring charges— — 181 181 
Operating income (loss)$7,379 $1,792 $(882)$8,289 
Operating margin35.5 %28.1 %29.2 %
Depreciation and amortization$192 $26 $217 $435 
Capital expenditures$507 $57 $1,696 $2,260 
Accounts receivable$3,733 $1,269 $183 $5,185 
Inventories$3,444 $2,301 $170 $5,915 
Goodwill$2,476 $1,032 $199 $3,707 


Semiconductor SystemsApplied Global ServicesCorporate and OtherTotal
 (In millions, except percentages)
2024
Net revenue$19,911 $6,225 $1,040 $27,176 
Costs of products sold9,379 4,088 812 14,279 
Gross profit$10,532 $2,137 $228 $12,897 
Gross margin52.9 %34.3 %47.5 %
Operating expenses:
Research, development and engineering2,684 114 435 3,233 
Selling, general and administrative867 211 719 1,797 
Operating income (loss)$6,981 $1,812 $(926)$7,867 
Operating margin35.1 %29.1 %28.9 %
Depreciation and amortization$168 $22 $202 $392 
Capital expenditures$425 $35 $730 $1,190 
Accounts receivable$3,816 $1,297 $121 $5,234 
Inventories$2,988 $2,306 $127 $5,421 
Goodwill$2,460 $1,032 $240 $3,732 
Semiconductor SystemsApplied Global ServicesCorporate and OtherTotal
 (In millions, except percentages)
2023
Net revenue$19,698 $5,732 $1,087 $26,517 
Costs of products sold9,456 3,911 766 14,133 
Gross profit$10,242 $1,821 $321 $12,384 
Gross margin52.0 %31.8 %46.7 %
Operating expenses:
Research, development and engineering2,544 101 457 3,102 
Selling, general and administrative819 191 618 1,628 
Operating income (loss)$6,879 $1,529 $(754)$7,654 
Operating margin34.9 %26.7 %28.9 %
Depreciation and amortization$235 $31 $249 $515 
Capital expenditures$381 $39 $686 $1,106 
Accounts receivable$3,943 $1,111 $111 $5,165 
Inventories$3,433 $2,073 $219 $5,725 
Goodwill$2,460 $1,032 $240 $3,732 

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.
During fiscal 2025, goodwill decreased primarily due to impairment charges recognized during the fourth quarter of fiscal 2025, partially offset by an increase related to preliminary purchase accounting for an acquisition which was not material to our results of operations or to our balance sheet.
During fiscal 2025, two customers accounted for approximately 19% and 15%, respectively, of our net revenue. During fiscal 2024, two customers accounted for approximately 12% and 11%, respectively, of our net revenue. During fiscal 2023, two customers accounted for approximately 19% and 15%, respectively, of our net revenue.
Net revenue for Semiconductor Systems by market for the periods indicated were as follows:
202520242023
Foundry, logic and other67 %68 %77 %
Dynamic random-access memory (DRAM)26 %28 %17 %
Flash memory (NAND)7 %4 %6 %
100 %100 %100 %
For geographical reporting, revenue by geographic location is determined by the location of customers’ facilities to which products were shipped and services were performed. Long-lived assets consist primarily of property, plant and equipment and right-of-use assets and are attributed to the geographic location in which they are located. Net revenue and long-lived assets by geographic region for and as of each fiscal year were as follows:
 
202520242023
 (In millions)
Net revenue:
United States$3,063 $3,818 $4,006 
China8,529 10,117 7,247 
Korea5,608 4,493 4,609 
Taiwan6,857 4,010 5,670 
Japan2,273 2,154 2,075 
Europe962 1,443 2,152 
Southeast Asia1,076 1,141 758 
Total outside United States25,305 23,358 22,511 
Consolidated total$28,368 $27,176 $26,517 


October 26,
2025		October 27,
2024
 (In millions)
Long-lived assets:
United States$5,071 $3,759 
China8 3 
Korea9 9 
Taiwan67 59 
Japan6 7 
Europe155 113 
Southeast Asia21 5 
Total outside United States266 196 
Consolidated total$5,337 $3,955