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Financial Instruments
 9 Months Ended
Sep. 26, 2026
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments Financial Instruments
Financial Instruments Recorded at Fair Value on a Recurring Basis
September 26, 2026December 27, 2025
(In millions)Level 1Level 2
Level 3
TotalLevel 1Level 2Level 3Total
Cash equivalents
Money market funds$1,252 $— $— $1,252 $620 $— $— $620 
Corporate debt securities— 1,427 — 1,427 — 1,869 — 1,869 
U.S. government and agency securities1,682 1,021 — 2,703 1,148 300 — 1,448 
Non-U.S. government and agency securities— 250 — 250 — 245 — 245 
Time deposits and certificates of deposits— 104 — 104 — 173 — 173 
Short-term investments
Corporate debt securities— 5,931 — 5,931 — 3,107 — 3,107 
U.S. government and agency securities1,584 741 — 2,325 901 718 — 1,619 
Non-U.S. government and agency securities— 11 — 11 — 256 — 256 
Time deposits and certificates of deposits— 86 — 86 — 10 — 10 
Asset-backed and mortgage-backed securities— 18 — 18 — 22 — 22 
Other non-current assets
Long-term investments
1,253 69 26 1,348 198 — 202 400 
Deferred compensation plan investments329 — — 329 257 — — 257 
Total assets measured at fair value$6,100 $9,658 $26 $15,784 $3,124 $6,700 $202 $10,026 
The following is a summary of cash equivalents and short-term investments:
September 26, 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$1,252 $— $— $1,252 $620 $— $— $620 
Corporate debt securities7,422 — (64)7,358 4,974 2 — 4,976 
U.S. government and agency securities5,050 — (22)5,028 3,065 2 — 3,067 
Non-U.S. government and agency securities261 — — 261 501 — — 501 
Time deposits and certificates of deposits190 — — 190 183 — — 183 
Asset-backed and mortgage-backed securities19 — (1)18 23 — (1)22 
$14,194 $— $(87)$14,107 $9,366 $4 $(1)$9,369 
As of September 26, 2026 and December 27, 2025, the Company did not have material available-for-sale debt securities which had been in a continuous unrealized loss position of more than twelve months.
The contractual maturities of available-for-sale debt securities are as follows:
September 26, 2026December 27, 2025
Amortized CostFair ValueAmortized CostFair Value
(In millions)(In millions)
Due within 1 year$7,351 $7,347 $6,528 $6,528 
Due in 1 year through 5 years5,572 5,490 2,195 2,199 
Due in 5 years and later19 18 23 22 
$12,942 $12,855 $8,746 $8,749 
Long-term investments measured at fair value on a recurring basis consist primarily of marketable equity securities of publicly traded companies, including warrants, and other instruments. As of September 26, 2026, net unrealized gains from marketable equity securities were $485 million and were not material as of December 27, 2025. As of September 26, 2026 and December 27, 2025, these investments included $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.
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:
September 26, 2026December 27, 2025
Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
(In millions)(In millions)
Current portion of long-term debt, net
$— $— $874 $879 
Long-term debt
$7,079 $6,753 $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, which primarily consist of investments in privately held SI and emerging technology companies, are accounted for under the measurement alternative and are measured at fair value on a non-recurring basis when there is an observable price change or impairment. These fair value measurements are classified within Level 3 of the fair value hierarchy and are determined using valuation models that incorporate unobservable inputs. Certain of the Company’s investments in privately held cloud and SI infrastructure companies are variable interests in variable interest entities (VIEs). See Note 12 – Variable Interest Entities.
As of September 26, 2026 and December 27, 2025, the carrying value of these investments was $1.9 billion and $1.1 billion, respectively, which included cumulative gross unrealized gains of $145 million and $291 million, respectively. Gross unrealized gains were $155 million and $107 million during the nine months ended September 26, 2026 and September 27, 2025, respectively, and were not material during the three-month periods. Gross unrealized losses and impairments for all periods presented, including on a cumulative basis, were not material.
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 September 26, 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 September 26, 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 September 26, 2026 and December 27, 2025, the notional value of these outstanding contracts was $3.0 billion and $1.1 billion, respectively. The fair value of these contracts, on a gross basis, was not material as of September 26, 2026 and December 27, 2025.
Credit Derivatives
The Company has entered into guarantees to provide credit support for payment obligations of certain commercial partners, in the event of their default, to support their development of data center infrastructure. These guarantees, which include data center lease guarantees and commercial partner debt guarantees, are accounted for as credit derivatives and recorded at fair value on a recurring basis within Other current liabilities and Other long-term liabilities, with changes in fair value recognized in Other income (expense), net. The fair value of these credit derivatives is classified within Level 3 of the fair value hierarchy and is determined using valuation models that incorporate unobservable inputs, including, where applicable, lease rates, obligor credit ratings, credit spreads and default rates that were based on estimates applicable to obligors with comparable credit risk profiles. As of September 26, 2026, no commercial partner was in default and no amounts had been paid under these guarantees.
Data center lease guarantees. These guarantees cover certain commercial partners' data center lease obligations to third-party landlords. As of September 26, 2026, the maximum gross exposure was $7.7 billion over remaining terms of up to 15 years, and decreases as commercial partners satisfy their payment obligations. Upon a commercial partner’s default, the Company may assume the underlying leases for internal use, or assign or sublease to third parties. The guarantees may terminate upon the occurrence of certain events. As of September 26, 2026, the fair value of these data center lease guarantees, and the related gains and losses for the three and nine months ended September 26, 2026, were not material to the financial statements.
Commercial partner debt guarantees. These guarantees cover certain commercial partners' borrowings used to finance data center infrastructure. As of September 26, 2026, the maximum gross exposure was $750 million with remaining terms of up to 6 months. Upon a commercial partner’s default, the Company will be required to repay the related borrowings, and may receive recovery from the commercial partner or the underlying data center assets. As of September 26, 2026, the fair value of these debt guarantees, and the related gains and losses for the three and nine months ended September 26, 2026, were not material to the financial statements.