Fair Value Measurements and Investments

12 Months Ended

Sep. 30, 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 as of September 30 Using Inputs Considered as
	Level 1				Level 2
	2025		2024		2025		2024
	(in millions)
Assets
Cash equivalents and restricted cash equivalents:
Money market funds	$	13,760	$	10,403	$	—	$	—
U.S. Treasury securities	—		7		—		—
Investment securities:
Marketable equity securities	411		301		—		—
U.S. government-sponsored debt securities	—		—		305		496
U.S. Treasury securities	2,116		4,948		—		—
Other current and non-current assets:
Money market funds	28		25		—		—
Derivative instruments	—		—		62		103
Total	$	16,315	$	15,684	$	367	$	599
Liabilities
Accrued compensation and benefits:
Deferred compensation liability	$	268	$	238	$	—	$	—
Accrued and other liabilities:
Derivative instruments	—		—		319		226
Total	$	268	$	238	$	319	$	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:

	September 30, 2025
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
	(in millions)
U.S. government-sponsored debt securities	$	304	$	1	$	—	$	305
U.S. Treasury securities	2,101		15		—		2,116
Total	$	2,405	$	16	$	—	$	2,421

	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:

	September 30, 2025
	(in millions)
Due within one year	$	1,564
Due after one year through five years	857
Total	$	2,421

Equity Securities

For fiscal 2025, 2024 and 2023, the Company recognized net unrealized gains of $17 million and $12 million and net unrealized losses of $102 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:

	September 30,
	2025		2024
	(in millions)
Initial cost basis	$	711	$	711
Adjustments:
Upward adjustments	564		910
Downward adjustments, including impairment	(219)		(465)
Carrying amount	$	1,056	$	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:

	For the Years Ended September 30,
	2025		2024		2023
	(in millions)
Upward adjustments	$	14	$	10	$	94
Downward adjustments, including impairment	$	(51)	$	(35)	$	(99)

Investment Income (Expense)

Investment income (expense) consisted of the following:

	For the Years Ended September 30,
	2025		2024		2023
	(in millions)
Interest and dividend income on cash and investments	$	791	$	992	$	745
Gains (losses) on investments, net	(51)		(44)		(82)
Investment income (expense)	$	740	$	948	$	663

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 September 30, 2025, the carrying value and estimated fair value of debt was $25.2 billion and $23.3 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 September 30, 2025, the carrying values of settlement receivable and payable, accounts 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.