Fair Value Measurements and Investments

6 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements and Investments

Note 6—Fair Value Measurements and Investments

Assets and Liabilities Measured at Fair Value on a Recurring Basis

	Fair Value Measurements Using Inputs Considered as
	Level 1				Level 2
	March 31, 2025		September 30, 2024		March 31, 2025		September 30, 2024
	(in millions)
Assets
Cash equivalents and restricted cash equivalents:
Money market funds	$	9,438	$	10,403	$	—	$	—
U.S. Treasury securities	7		7		—		—
Investment securities:
Marketable equity securities	314		301		—		—
U.S. government-sponsored debt securities	—		—		305		496
U.S. Treasury securities	2,868		4,948		—		—
Other current and non-current assets:
Money market funds	27		25		—		—
Derivative instruments	—		—		194		103
Total	$	12,654	$	15,684	$	499	$	599
Liabilities
Accrued compensation and benefits:
Deferred compensation liability	$	235	$	238	$	—	$	—
Accrued and other liabilities:
Derivative instruments	—		—		252		226
Total	$	235	$	238	$	252	$	226

Level 1 assets and liabilities. Money market funds, U.S. Treasury securities and marketable equity securities are classified as Level 1 within the fair value hierarchy, as fair value is based on unadjusted quoted prices in active markets for identical assets. The Company’s deferred compensation liability is measured at fair value based on marketable equity securities held under the deferred compensation plan.

Level 2 assets and liabilities. The fair value of U.S. government-sponsored debt securities, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. Derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data.

U.S. Government-sponsored Debt Securities and U.S. Treasury Securities

The amortized cost, unrealized gains and losses and fair value of debt securities were as follows:

	March 31, 2025
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
	(in millions)
U.S. government-sponsored debt securities	$	303	$	2	$	—	$	305
U.S. Treasury securities	2,858		17		—		2,875
Total	$	3,161	$	19	$	—	$	3,180

	September 30, 2024
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
	(in millions)
U.S. government-sponsored debt securities	$	492	$	4	$	—	$	496
U.S. Treasury securities	4,920		40		(5)		4,955
Total	$	5,412	$	44	$	(5)	$	5,451

The stated maturities of debt securities were as follows:

	March 31, 2025
	(in millions)
Due within one year	$	1,789
Due after one year through five years	1,391
Total	$	3,180

Equity Securities

For the three months ended March 31, 2025 and 2024, the Company recognized net unrealized losses of $23 million for both periods on marketable and non-marketable equity securities held as of period end. For the six months ended March 31, 2025 and 2024, the Company recognized net unrealized losses of $33 million and net unrealized gains of $13 million, respectively, on marketable and non-marketable equity securities held as of period end.

Fair value measurement alternative. The Company’s investments in privately held companies do not have readily determinable fair values. These investments are measured at fair value on a non-recurring basis and are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity and the fact that significant inputs used to measure fair value are unobservable and require management’s judgment.

The following table summarizes the Company’s non-marketable equity securities held as of period end that were accounted for using the fair value measurement alternative:

	March 31, 2025		September 30, 2024
	(in millions)
Initial cost basis	$	702	$	711
Adjustments:
Upward adjustments	850		910
Downward adjustments, including impairment	(494)		(465)
Carrying amount	$	1,058	$	1,156

Unrealized gains and losses of the Company’s non-marketable equity securities held as of period end that were accounted for using the fair value measurement alternative were as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
	2025		2024		2025		2024
	(in millions)
Upward adjustments	$	7	$	—	$	7	$	9
Downward adjustments, including impairment	$	(31)	$	(15)	$	(49)	$	(15)

Other Fair Value Disclosures

Debt. Debt instruments are measured at amortized cost on the Company’s consolidated balance sheets. The fair value of the debt instruments, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, instruments. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. As of March 31, 2025, the carrying value and estimated fair value of debt was $20.8 billion and $18.7 billion, respectively. As of September 30, 2024, the carrying value and estimated fair value of debt was $20.8 billion and $19.2 billion, respectively.

Other financial instruments not measured at fair value. As of March 31, 2025, the carrying values of settlement receivable and payable and customer collateral are an approximate fair value due to their generally short maturities. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy.

Non-financial assets. Certain non-financial assets such as goodwill, intangible assets and property, equipment and technology are subject to non-recurring fair value measurements if they are deemed to be impaired. The Company performed an annual impairment review of its indefinite-lived intangible assets and goodwill as of February 1, 2025, and concluded there was no impairment as of that date. No recent events or changes in circumstances indicated that impairment existed as of March 31, 2025