Commitments and Contingencies

6 Months Ended

Jun. 27, 2026

Commitments and Contingencies Disclosure [Abstract]

Commitments

The Company’s commitments primarily include obligations to purchase wafers, substrates and components from third parties, as well as commitments for multi-year cloud compute capacity arrangements with cloud service providers (CSP), software, and technology license agreements. The Company continually works with suppliers and partners on the timing of payments and deliveries of commitments, taking into account business conditions. Cloud compute capacity may be reduced, terminated or sold to others by the CSPs, in which case the Company’s commitments will be reduced. The Company expects to utilize the cloud compute capacity in its operations or assign the capacity to third parties. These commitments were made under noncancellable purchase orders and contractual obligations requiring minimum commitments for which cancellation would lead to significant penalties.

Total future commitments as of June 27, 2026 were as follows (in millions):


Fiscal Year	Remainder of 2026		2027		2028		2029		2030		2031 and thereafter		Total
Unconditional commitments	$	17,386	$	5,474	$	2,851	$	2,528	$	1,471	$	566	$	30,276

The Company has also entered into data center and other real estate leases that have not yet commenced. As of June 27, 2026, these leases have aggregate future payments of $4.5 billion and have lease terms of 6 to 11 years. These leases are expected to commence beginning in the second half of fiscal year 2026. Subsequent to June 27, 2026, the Company entered into long-term data center leases with aggregate future payments of $9.5 billion over lease terms of up to 16 years and these leases are expected to commence in 2027 and 2028.

Contingencies

During the quarter ended June 27, 2026, there were no material legal proceedings. The Company is a defendant or plaintiff in various actions that arose in the normal course of business. With respect to these matters, based on management’s current knowledge, the Company believes that the amount or range of reasonably possible loss, if any, will not, either individually or in the aggregate, have a material adverse effect on the Company’s financial position, results of operations, or cash flows.