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Industry Segment Operations
 3 Months Ended
Jan. 25, 2026
Segment Reporting [Abstract]  
Industry Segment Operations Industry Segment Operations
Our two reportable segments are: Semiconductor Systems and Applied Global Services (AGS). Segment information is presented based upon our management organization structure as of January 25, 2026 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 services, spares and factory automation software for semiconductor and other products.
Effective the first quarter of fiscal 2026, we have moved our 200 millimeter (200mm) equipment business from our AGS segment to our Semiconductor Systems segment. We made this change in order to increase our operational efficiency and consolidate the reporting of our 200mm equipment with the reporting of our other capital equipment used to fabricate semiconductor chips in our Semiconductor Systems segment. In addition, effective in the first quarter of fiscal 2026, we are fully allocating corporate support costs to our reportable segments. Prior-period segment balances have been recast to conform to the current-year presentation.
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, 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 Other category includes revenues, costs of products and operating expenses from other operating segments that do not meet the requirements for a reportable segment. 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 reporting period was as follows:
Semiconductor SystemsApplied Global ServicesOtherTotal
 (In millions, except percentages)
Three Months Ended January 25, 2026
Revenue $5,141 $1,559 $312 $7,012 
Costs of products sold2,347 1,022 208 3,577 
Gross profit$2,794 $537 $104 $3,435 
Gross margin54.3 %34.4 %49.0 %
 Operating expenses:
Research, development and engineering798 18 112 928 
Selling, general and administrative316 81 14 411 
Legal settlement253 — — 253 
Restructuring charges— — 12 12 
Operating income (loss)$1,427 $438 $(34)$1,831 
Operating margin27.8 %28.1 %26.1 %
Depreciation and amortization$81 $14 $32 $127 
Capital expenditures$76 $10 $560 $646 
Balance as of January 25, 2026
Accounts receivable$3,687 $1,203 $87 $4,977 
Inventories$4,047 $1,826 $124 $5,997 
Goodwill$2,544 $964 $199 $3,707 
Semiconductor SystemsApplied Global ServicesOtherTotal
 (In millions, except percentages)
Three Months Ended January 26, 2025
Revenue $5,597 $1,353 $216 $7,166 
Costs of products sold2,611 916 143 3,670 
Gross profit$2,986 $437 $73 $3,496 
Gross margin53.4 %32.3 %48.8 %
 Operating expenses:
Research, development and engineering734 14 111 859 
Selling, general and administrative380 87 (5)462 
Operating income (loss)$1,872 $336 $(33)$2,175 
Operating margin33.4 %24.8 %30.4 %
Depreciation and amortization$69 $12 $24 $105 
Capital expenditures$107 $4 $270 $381 
Balance as of January 26, 2025
Accounts receivable$4,779 $1,105 $114 $5,998 
Inventories$3,543 $1,810 $148 $5,501 
Goodwill$2,564 $964 $240 $3,768 
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.
Two customers accounted for approximately 19% and 16%, respectively, of our revenue for the three months ended January 25, 2026. No other customer accounted for greater than 10% of our revenue for the three months ended January 25, 2026.
Revenue for Semiconductor Systems by market for the periods presented were as follows:
Three Months Ended
January 25,
2026		January 26,
2025
Foundry, logic and other62 %69 %
Dynamic random-access memory (DRAM)34 %27 %
Flash memory (NAND)4 %4 %
100 %100 %
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 Ended
 January 25,
2026		January 26,
2025		Change
 (In millions, except percentages)
China$2,095 30 %$2,243 31 %(7)%
Korea1,458 21 %1,667 23 %(13)%
Taiwan1,722 25 %1,183 17 %46 %
Japan525 7 %540 8 %(3)%
Southeast Asia335 5 %286 4 %17 %
Asia Pacific6,135 88 %5,919 83 %4 %
United States656 9 %917 13 %(28)%
Europe221 3 %330 4 %(33)%
Total$7,012 100 %$7,166 100 %(2)%