Segment Information and Major Customers

6 Months Ended

Jan. 27, 2024

Segment Reporting [Abstract]

Segment Information and Major Customers

Segment Information and Major Customers

(a)Revenue and Gross Margin by Segment

We conduct business globally and are primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. Our management makes financial decisions and allocates resources based on the information it receives from our internal management system. Sales are attributed to a segment based on the ordering location of the customer. We do not allocate research and development, sales and marketing, or general and administrative expenses to our segments in this internal management system because management does not include the information in our measurement of the performance of the operating segments. In addition, we do not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, significant litigation settlements and other contingencies, charges related to asset impairments and restructurings, and certain other charges to the gross margin for each segment because management does not include this information in our measurement of the performance of the operating segments.

Summarized financial information by segment for the second quarter and first six months of fiscal 2024 and 2023, based on our internal management system and as utilized by our Chief Operating Decision Maker (“CODM”), is as follows (in millions):

	Three Months Ended				Six Months Ended
	January 27, 2024		January 28, 2023		January 27, 2024		January 28, 2023
Revenue:
Americas	$	7,510	$	7,825	$	16,532	$	15,738
EMEA	3,484		3,728		7,148		7,404
APJC	1,798		2,039		3,779		4,082
Total	$	12,791	$	13,592	$	27,459	$	27,224
Gross margin:
Americas	$	4,932	$	4,920	$	10,901	$	9,904
EMEA	2,373		2,469		4,919		4,795
APJC	1,226		1,298		2,554		2,571
Segment total	8,532		8,687		18,373		17,269
Unallocated corporate items	(315)		(260)		(599)		(496)
Total	$	8,217	$	8,427	$	17,774	$	16,773

Amounts may not sum due to rounding.

Revenue in the United States was $6.7 billion and $7.0 billion for the second quarter of fiscal 2024 and 2023, respectively and $14.9 billion and $14.0 billion for the first six months of fiscal 2024 and 2023, respectively.

(b)Revenue for Groups of Similar Products and Services

We design and sell Internet Protocol (IP)-based networking and other products related to the communications and IT industry and provide services associated with these products and their use. Effective in the first quarter of fiscal 2024, we began reporting our product and service revenue in the following categories: Networking, Security, Collaboration, Observability, and Services and conformed our product revenue for prior periods to the current period presentation.

The following table presents revenue for groups of similar products and services (in millions):

	Three Months Ended				Six Months Ended
	January 27, 2024		January 28, 2023		January 27, 2024		January 28, 2023
Revenue:
Networking	$	7,081	$	8,092	$	15,904	$	16,123
Security	973		943		1,984		1,914
Collaboration	989		958		2,106		2,044
Observability	188		162		378		319
Total Product	9,232		10,155		20,371		20,400
Services	3,559		3,437		7,088		6,824
Total	$	12,791	$	13,592	$	27,459	$	27,224

Amounts may not sum due to rounding.