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Shareholders' Equity and Convertible Preferred Stock
 9 Months Ended
Apr. 03, 2026
Share-Based Payment Arrangement [Abstract]  
Shareholders' Equity and Convertible Preferred Stock Shareholders’ Equity and Convertible Preferred Stock
Stock-based Compensation Expense

The following tables present the Company’s stock-based compensation for equity-settled awards by type (i.e., restricted stock units (“RSUs”), restricted stock unit awards with performance conditions or market conditions (“PSUs”), and rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”)) and financial statement line items as well as the related tax benefit included in the Company’s Condensed Consolidated Statements of Operations:
Three Months EndedNine Months Ended
April 3,
2026		March 28,
2025		April 3,
2026		March 28,
2025
(in millions)
RSUs and PSUs$49 $34 $147 $110 
ESPP4 1 12 12 
Total$53 $35 $159 $122 

Three Months EndedNine Months Ended
April 3,
2026		March 28,
2025		April 3,
2026		March 28,
2025
(in millions)
Cost of revenue$9 $7 $26 $26 
Research and development21 17 67 52 
Selling, general and administrative18 11 58 44 
Business realignment charges5 — 8 — 
Subtotal53 35 159 122 
Tax benefit(7)(4)(20)(15)
Total$46 $31 $139 $107 

Any excess windfall tax benefits and tax deficiencies for shortfalls related to the vesting and exercise of stock-based awards are recognized as a component of the Company’s Income tax expense (benefit). During the three and nine months ended April 3, 2026, excess windfall tax benefits were $47 million and $76 million, respectively. Excess windfall tax benefits and tax deficiencies for shortfalls were immaterial for the three and nine months ended March 28, 2025.

Compensation cost related to unvested RSUs, PSUs, and rights to purchase shares of common stock under the ESPP are generally amortized on a straight-line basis over the remaining average service period. The following table presents the unamortized compensation cost and weighted average service period of all unvested outstanding awards as of April 3, 2026:
Unamortized Compensation Cost
Weighted Average Service Period
(in millions)(years)
RSUs and PSUs (1)
$317 1.9
ESPP14 0.7
Total unamortized compensation cost$331 
(1)    Weighted average service period assumes the performance conditions are met for the PSUs.
Plan Activities

RSUs and PSUs

The following table summarizes RSU and PSU activity under the Company’s incentive plans:
Number of SharesWeighted Average Grant Date Fair ValueAggregate Intrinsic Value at Vest Date
(in millions)(in millions)
RSUs and PSUs outstanding at June 27, 20259.7 $33.56 
Granted2.6 83.26 
Vested(3.9)35.13 $593 
Forfeited(0.6)42.37 
RSUs and PSUs outstanding at April 3, 20267.8 $49.49 

RSUs and PSUs are generally settled in an equal number of shares of the Company’s common stock at the time of vesting of the units.

Common Stock

The Company is authorized to issue 750 million shares of common stock, $0.01 par value per share. As of April 3, 2026 and June 27, 2025, there were 349 million shares issued, and 345 million and 347 million shares outstanding, respectively, which are net of 4 million and 2 million shares of treasury stock held at cost, respectively.

Convertible Preferred Stock

On January 31, 2023, the Board of Directors of the Company authorized the designation of 900,000 shares of Series A Convertible Perpetual Preferred Stock, par value $0.01 per share (the “Preferred Shares”), from the Company’s existing 5,000,000 authorized but unissued shares of preferred stock and issued the Preferred Shares through a private placement. As of June 27, 2025, 235,000 Preferred Shares were outstanding, with an aggregate liquidation preference of $265 million, including previous dividends paid in-kind.

The Preferred Shares had an initial stated value of $1,000 per share and accrued a cumulative preferred dividend at an annual rate of 6.25% per annum, compounded on a quarterly basis. Through December 27, 2024, the Company paid quarterly dividends on the Preferred Shares in-kind through an increase to the stated value. Subsequently, quarterly dividends on the Preferred Shares were made in cash, including $8 million paid in the nine months ended April 3, 2026. The Preferred Shares also participated in any dividends declared for common shareholders on an as-converted equivalent basis.

On February 17, 2026, the Company converted all remaining outstanding Preferred Shares into 7 million shares of the Company’s common stock pursuant to a mandatory conversion in accordance with the terms of the Company’s Certificate of Designations, Preferences and Rights of the Preferred Shares. Immediately prior to conversion, the Preferred Shares outstanding had an aggregate liquidation preference of $267 million, which included previous dividends paid in-kind of $32 million. On February 24, 2026, the Company filed a Certificate of Elimination with the Secretary of State of the State of Delaware with respect to the Preferred Shares, pursuant to which the Preferred Shares were eliminated and returned to the status of authorized and unissued preferred shares of the Company.
Share Repurchase Program

On May 9, 2025, the Company’s Board of Directors authorized a share repurchase program for the repurchase of up to $2.00 billion of the Company’s common stock, and on February 2, 2026, the Company’s Board of Directors authorized the repurchase of up to an additional $4.00 billion of the Company's common stock (collectively, the “Share Repurchase Program”). There is no expiration date for the Share Repurchase Program. During the three months ended April 3, 2026, the Company repurchased 2.9 million shares under the Share Repurchase Program for a total cash cost of $752 million plus $5 million for accrued excise taxes. During the nine months ended April 3, 2026, the Company repurchased 13.1 million shares under the Share Repurchase Program for a total cash cost of $1.92 billion plus $13 million for accrued excise taxes. As of April 3, 2026, the Company had $3.93 billion available for repurchases pursuant to the Share Repurchase Program. Repurchases under the Share Repurchase Program may be made in the open market or in privately negotiated transactions and may be made under a Rule 10b5-1 plan. The Company expects shares repurchased under the Share Repurchase Program to be funded principally by operating cash flows. The amount and timing of share repurchases will depend on market conditions and other corporate considerations. The Company may suspend or discontinue the Share Repurchase Program at any time.

Dividends to Common Shareholders

On April 29, 2025, the Company’s Board of Directors authorized the adoption of a cash dividend program. Under the cash dividend program, holders of the Company’s common stock will receive dividends when and as declared by the Board of Directors. During the three months ended April 3, 2026, the Company paid cash dividends of $0.125 per share of its outstanding common stock, totaling $43 million. During the nine months ended April 3, 2026, the Company paid aggregate cash dividends of $0.35 per share of its outstanding common stock, totaling $120 million, plus $2 million paid to holders of the Company’s Preferred Shares in accordance with their participation rights.

Subsequent to quarter-end, on April 29, 2026, the Board of Directors declared a cash dividend of $0.15 per share of the Company’s common stock, which will be paid on June 17, 2026 to shareholders of record as of the close of business on June 5, 2026.

The Company may modify, suspend, or cancel its cash dividend program in any matter and at any time. The amount of future dividends under the Company’s cash dividend program, and the declaration and payment thereof, will be based upon all relevant factors, including the Company’s financial position, results of operations, cash flows, capital requirements and restrictions under the Company’s Loan Agreement and other financing agreements, and shall be in compliance with applicable law.