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Financial Instruments
 6 Months Ended
Jun. 27, 2026
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments Financial Instruments
Financial Instruments Recorded at Fair Value on a Recurring Basis
June 27, 2026December 27, 2025
(In millions)Level 1Level 2
Level 3
TotalLevel 1Level 2Level 3Total
Cash equivalents
Money market funds$752 $— $— $752 $620 $— $— $620 
Corporate debt securities— 1,049 — 1,049 — 1,869 — 1,869 
U.S. government and agency securities250 1,074 — 1,324 1,148 300 — 1,448 
Non-U.S. government and agency securities— 134 — 134 — 245 — 245 
Time deposits and certificates of deposits— 142 — 142 — 173 — 173 
Short-term investments
Corporate debt securities— 5,354 — 5,354 — 3,107 — 3,107 
U.S. government and agency securities1,333 1,113 — 2,446 901 718 — 1,619 
Non-U.S. government and agency securities— 119 — 119 — 256 — 256 
Time deposits and certificates of deposits— 86 — 86 — 10 — 10 
Asset-backed and mortgage-backed securities— 20 — 20 — 22 — 22 
Other non-current assets
Long-term investments
1,194 — 26 1,220 198 — 202 400 
Deferred compensation plan investments312 — — 312 257 — — 257 
Total assets measured at fair value$3,841 $9,091 $26 $12,958 $3,124 $6,700 $202 $10,026 
Long-term investments primarily consist of equity investments in previously non-marketable equity securities that became publicly traded during the second quarter of fiscal year 2026 and were reclassified to Level 1 upon the availability of quoted market prices. As of June 27, 2026, net unrealized gains from marketable equity securities were $425 million and were not material as of December 27, 2025.
As of June 27, 2026 and December 27, 2025, long-term investments include $1.1 billion and $178 million, respectively, of aggregate fair value of marketable equity securities which are subject to time-based contractual sale restrictions that expire through October 2028.
Deferred compensation plan investments are primarily mutual fund investments held in a Rabbi trust established to maintain the Company’s executive deferred compensation plan.
The following is a summary of cash equivalents and short-term investments:
June 27, 2026December 27, 2025
Cost/ Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair
Value		Cost/ Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair
Value
(in millions)(in millions)
Money market funds$752 $— $— $752 $620 $— $— $620 
Corporate debt securities6,423 1 (21)6,403 4,974 2 — 4,976 
U.S. government and agency securities3,778 — (8)3,770 3,065 2 — 3,067 
Non-U.S. government and agency securities253 — — 253 501 — — 501 
Time deposits and certificates of deposits228 — — 228 183 — — 183 
Asset-backed and mortgage-backed securities21 — (1)20 23 — (1)22 
$11,455 $1 $(30)$11,426 $9,366 $4 $(1)$9,369 
As of June 27, 2026 and December 27, 2025, the Company did not have material available-for-sale debt securities which have been in a continuous unrealized loss position of more than twelve months.
The contractual maturities of available-for-sale debt securities are as follows:
June 27, 2026December 27, 2025
Amortized CostFair ValueAmortized CostFair Value
(In millions)(In millions)
Due within 1 year$6,679 $6,677 $6,528 $6,528 
Due in 1 year through 5 years4,004 3,978 2,195 2,199 
Due in 5 years and later20 19 23 22 
$10,703 $10,674 $8,746 $8,749 
Financial Instruments Not Recorded at Fair Value
The carrying amounts and estimated fair values of the Company’s current and long-term debt are as follows:
June 27, 2026December 27, 2025
Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
(In millions)(In millions)
Current portion of long-term debt, net
$875 $876 $874 $879 
Long-term debt
$2,351 $2,225 $2,348 $2,246 
The estimated fair value of the Company’s long-term debt is based on Level 2 inputs of quoted prices for the Company’s debt and comparable instruments in inactive markets.
The fair value of the Company’s accounts receivable, accounts payable and other short-term obligations approximate their carrying value based on existing terms.
Financial Instruments Measured at Fair Value on a Non-Recurring Basis
Non-marketable equity securities and other instruments primarily include investments in privately held companies with technologies that are typically in early stages of research or development. These investments are recorded within Other non-current assets on the Consolidated Balance Sheets. Gains and losses are recorded in Other income (expense), net on the Consolidated Statements of Operations.
As of June 27, 2026 and December 27, 2025, the Company had long-term investments in non-marketable equity securities of $1.7 billion and $1.1 billion, respectively, which are recorded at estimated fair value based on observable events or adjustments from impairments.
As of June 27, 2026, non-marketable equity investments had cumulative gross unrealized gains of $118 million. The cumulative and gross unrealized losses and impairments were not material for the period ended June 27, 2026. Gross unrealized gains, impairment losses and gross unrealized losses were not material during the three and six months ended June 28, 2025.
Subsequent to June 27, 2026, the Company entered into investment commitments of up to $5.0 billion, subject to certain contingencies, which are expected to be made through fiscal year 2028.
Hedging Transactions and Derivative Financial Instruments
Foreign Currency Forward Contracts Designated as Accounting Hedges
The Company enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate risk related to future forecasted transactions denominated in currencies other than the U.S. Dollar. These contracts generally mature within 24 months and are designated as accounting hedges. As of June 27, 2026 and December 27, 2025, the notional value of the Company’s outstanding foreign currency forward contracts designated as cash flow hedges was $3.2 billion and $2.3 billion, respectively. The fair value of these contracts, on a gross basis, was not material as of June 27, 2026 and December 27, 2025.
Foreign Currency Forward Contracts Not Designated as Accounting Hedges
The Company also enters into foreign currency forward contracts to reduce the short-term effects of foreign currency fluctuations on certain receivables or payables denominated in currencies other than the U.S. Dollar. These forward contracts generally mature within 3 months and are not designated as accounting hedges. As of June 27, 2026 and December 27, 2025, the notional value of these outstanding contracts was $1.6 billion and $1.1 billion, respectively. The fair value of these contracts, on a gross basis, was not material as of June 27, 2026 and December 27, 2025.
The cash flows associated with derivative instruments as cash flow hedging instruments are classified in the same category within the Consolidated Statement of Cash Flows as the cash flows of the related items.
Lease Guarantees
As of June 27, 2026, the Company had a maximum gross exposure of $4.1 billion from guarantees issued in connection with certain commercial partner data center lease obligations with terms up to 15 years. Guarantees typically become payable in the event of a commercial partner’s default and may be issued in exchange for warrants. The exposure decreases over time as contractual lease payments are made to the lessors. Guarantees are recorded as a credit derivative within Other long-term liabilities, with changes in fair value recorded within Other income (expense), net, and were not material to the financial statements.