Financial Analysis

Debt As of May 28, 2026 As of August 28, 2025 Net Carrying Amount Net Carrying Amount Stated Rate Effective Rate Current Long-Term Total Current Long-Term Total 2031 Notes 5.300 % 5.41 % $ $ 261 $ 261 $ $ 995 $ 995 2032 Green Bonds 2.703 % 2.77 % 996 996 996 996 2032 Notes 5.650 % 5.79 % 70 70 496 496 2033 A Notes 5.875 % 5.96 % 175 175 746 746 2033 B Notes 5.875 % 6.01 % 213 213 892 892 2035 A Notes 5.800 % 5.90 % 135 135 992 992 2035 B Notes 6.050 % 6.14 % 219 219 1,241 1,241 2041 Notes 3.366 % 3.41 % 497 497 497 497 2051 Notes 3.477 % 3.52 % 486 486 496 496 2028 Notes N/A N/A 540 540 2029 Term Loan A N/A N/A 982 982 2029 A Notes N/A N/A 698 698 2029 B Notes N/A N/A 1,168 1,168 2030 Notes N/A N/A 794 794 Finance lease obligations N/A 4.72 % 582 2,088 2,670 560 2,484 3,044 $ 582 $ 5,140 $ 5,722 $ 560 $ 14,017 $ 14,577 As of May 28, 2026, the fair value of our outstanding debt instruments approximated the carrying value of our debt. The fair value of our debt instruments was estimated based on Level 2 inputs, including the trading price of our notes when available, discounted cash flows, and interest rates based on similar debt issued by parties with credit ratings similar to ours. Debt Activity The table below presents the effects of debt prepayment activity in the first nine months of 2026: Transaction Date Decrease in Principal Decrease in Carrying Value Decrease in Cash Prepayments 2028 Notes October 24, 2025 $ (542) $ (541) $ (562) 2029 B Notes October 24, 2025 (1,159) ( …

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Quarter Ended Nine Months Ended May 28, 2026 May 29, 2025 May 28, 2026 May 29, 2025 DRAM $ 31,328 $ 7,071 $ 60,908 $ 19,594 NAND 9,943 2,155 17,683 6,251 Other (primarily NOR) 185 75 368 218 $ 41,456 $ 9,301 $ 78,959 $ 26,063

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Equity Compensation Plans As of May 28, 2026, 48 million shares of our common stock were available for future awards under our equity compensation plans, including 7 million shares approved for issuance under our employee stock purchase plan (ESPP). Restricted Stock and Restricted Stock Units (Restricted Stock Awards) Nine Months Ended May 28, 2026 May 29, 2025 Restricted stock award shares granted 7 11 Weighted-average grant-date fair value per share $ 227.18 $ 100.25 Employee Stock Purchase Plan (ESPP) Employees purchased 2 million shares in each six -month ESPP offering period that ended in the second quarter of 2026 and 2025 at a share price of $92.77 and $78.63, respectively. Stock-based Compensation Expense Stock-based compensation expense recognized in our statements of operations is presented below. Stock-based compensation expense of $132 million and $96 million was capitalized and remained in inventory as of May 28, 2026 and August 28, 2025, respectively. Quarter Ended Nine Months Ended May 28, 2026 May 29, 2025 May 28, 2026 May 29, 2025 Stock-based compensation expense by caption Cost of goods sold $ 143 $ 115 $ 371 $ 294 Research and development 129 89 355 254 Selling, general, and administrative 69 59 192 165 $ 341 $ 263 $ 918 $ 713 Stock-based compensation expense by type of award Restricted stock awards $ 309 $ 239 $ 829 $ 643 ESPP 32 24 89 70 $ 341 $ 263 $ 918 $ 713 As of May 28, 2026, $2.13 billion of total unrecognized compensation costs for unvested awards, …

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Income Taxes Our income tax (provision) benefit consisted of the following: Quarter Ended Nine Months Ended May 28, 2026 May 29, 2025 May 28, 2026 May 29, 2025 Income before taxes $ 33,212 $ 2,113 $ 55,433 $ 6,023 Income tax (provision) benefit (4,978) (235) (8,178) (695) Effective tax rate 15.0 % 11.1 % 14.8 % 11.5 % The change in our effective tax rate for the third quarter and first nine months of 2026, as compared to the corresponding periods of 2025, was primarily due to the 15% minimum tax Pillar Two Model Rules (Pillar Two). Singapore enacted legislation to implement Pillar Two, effective for us in 2026, which largely offsets the benefit from our Singapore tax incentive arrangements. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, introducing broad changes to the U.S. tax code, including modifications to corporate and international tax provisions, which primarily are effective for us beginning in 2026 and 2027. The aggregate impact of the OBBBA remains uncertain. We will continue to monitor future developments, including regulatory guidance and interpretations, which could have a material impact on our income tax provision. Other noncurrent liabilities included $5.79 billion and $648 million related to income taxes payable as of May 28, 2026 and August 28, 2025, respectively. …

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Revenue and Customer Contract Liabilities Revenue by Technology Quarter Ended Nine Months Ended May 28, 2026 May 29, 2025 May 28, 2026 May 29, 2025 DRAM $ 31,328 $ 7,071 $ 60,908 $ 19,594 NAND 9,943 2,155 17,683 6,251 Other (primarily NOR) 185 75 368 218 $ 41,456 $ 9,301 $ 78,959 $ 26,063 See Item 1. Financial Statements, Notes to Consolidated Financial Statements, Note 17. Segment and Other Information for disclosure of disaggregated revenue by market segment. We recently executed certain strategic customer agreements, including agreements executed subsequent to May 28, 2026. These agreements are structured as take-or-pay agreements, with binding commitments for specific volumes over the multi-year contract terms and include contractually enforceable volumes. Pricing for most agreements is either fixed, or is subject to minimum and maximum pricing. A minority of the agreements do not have any fixed pricing or price bands, as pricing for those agreements is subject to market conditions. Our remaining performance obligations disclosure is based on minimum committed volumes and minimum pricing and is not expected to be indicative of future revenue under these contracts. Agreements without fixed pricing or price bands are not included in the remaining performance obligations disclosure. As a practical expedient, we have excluded contracts that have an original term of one year or less from our remaining performance obligations disclosure. As of May 28, 2026, the transaction pric …

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Segment and Other Information Segment information reported herein is consistent with the way our Chief Executive Officer, who is our Chief Operating Decision Maker (CODM), assesses the performance of our segments based on segment revenue, cost of goods sold, operating expenses, and operating income. The segment information reported herein is regularly provided to and reviewed and evaluated by our CODM to budget, forecast, and decide how to allocate resources for capital investments, human capital, and other strategic investments across our segments. We have the following four business units, which are based on market segments and our reportable segments: Cloud Memory Business Unit (CMBU): Focused on memory solutions for large hyperscale cloud customers, and HBM for all data center customers. Core Data Center Business Unit (CDBU): Focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. Mobile and Client Business Unit (MCBU): Focused on memory and storage solutions for the mobile and client segments. Automotive and Embedded Business Unit (AEBU): Focused on memory and storage solutions for the automotive, industrial, and consumer segments. Our other operations do not meet the thresholds of a reportable segment and are reported under All Other. Certain operating expenses directly associated with the activities of a specific segment are charged to that segment. Other indirect operating income an …

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Equity Common Stock Repurchases Our Board of Directors has authorized the discretionary repurchase of up to $10 billion of our outstanding common stock through open-market purchases, block trades, privately-negotiated transactions, derivative transactions, and/or pursuant to Rule 10b5-1 trading plans. The repurchase authorization has no expiration date, does not obligate us to acquire any common stock, and is subject to market conditions, restrictions applicable under our CHIPS Act direct funding agreements, and our ongoing determination of the best use of available cash. No shares were repurchased in the third quarter of 2026. We repurchased 2.5 million shares of our common stock for $650 million in first nine months of 2026. Through May 28, 2026, we had repurchased an aggregate of $7.84 billion under the authorization. Amounts repurchased are included in treasury stock. Dividends We declared and paid dividends of $0.115 per share in the first and second quarters of 2026 and $0.15 per share in the third quarter of 2026. On June 24, 2026, our Board of Directors declared a quarterly dividend of $0.15 per share, payable in cash on July 21, 2026, to shareholders of record as of the close of business on July 6, 2026.

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