Leases

9 Months Ended

Apr. 26, 2025

Leases [Abstract]

Leases

Leases

(a)Lessee Arrangements

The following table presents our operating lease balances (in millions):

	Balance Sheet Line Item	April 26, 2025		July 27, 2024
Operating lease right-of-use assets	Other assets	$	1,219	1,066
Operating lease liabilities	Other current liabilities	$	350	$	364
Operating lease liabilities	Other long-term liabilities	1,114		906
Total operating lease liabilities		$	1,464	$	1,270

The components of our lease expenses were as follows (in millions):

	Three Months Ended				Nine Months Ended
	April 26, 2025		April 27, 2024		April 26, 2025		April 27, 2024
Operating lease expense	$	115	$	101	$	378	$	304
Short-term lease expense	18		19		52		55
Variable lease expense	47		43		140		149
Total lease expense	$	180	$	163	$	570	$	508

Supplemental information related to our operating leases is as follows (in millions):

	Nine Months Ended
	April 26, 2025		April 27, 2024
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	345	$	279
Right-of-use assets obtained in exchange for operating leases liabilities	$	483	$	307

The weighted-average lease term was 5.5 years and 4.9 years as of April 26, 2025 and July 27, 2024, respectively. The weighted-average discount rate was 4.0% as of each of April 26, 2025 and July 27, 2024.

The maturities of our operating leases (undiscounted) as of April 26, 2025 are as follows (in millions):

Fiscal Year	Amount
2025 (remaining three months)	$	113
2026	382
2027	292
2028	217
2029	175
Thereafter	470
Total lease payments	1,649
Less: interest	(185)
Total	$	1,464

(b)Lessor Arrangements

Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income was $16 million and $49 million for the third quarter and the first nine months of fiscal 2025, respectively, and $18 million and $48 million for the corresponding periods of fiscal 2024, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.

Future minimum lease payments on our lease receivables as of April 26, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining three months)	$	126
2026	552
2027	239
2028	41
2029	43
Thereafter	24
Total	1,025
Less: Present value of lease payments	(922)
Unearned income	$	103

Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.

We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by us and the associated accumulated depreciation are summarized as follows (in millions):

	April 26, 2025		July 27, 2024
Operating lease assets	$	50	$	115
Accumulated depreciation	(13)		(61)
Operating lease assets, net	$	37	$	54

Our operating lease income was $9 million and $29 million for the third quarter and first nine months of fiscal 2025, respectively, and $14 million and $45 million for the corresponding periods of fiscal 2024, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of April 26, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining three months)	$	5
2026	15
2027	7
Total	$	27

Leases

Leases

(a)Lessee Arrangements

The following table presents our operating lease balances (in millions):

	Balance Sheet Line Item	April 26, 2025		July 27, 2024
Operating lease right-of-use assets	Other assets	$	1,219	1,066
Operating lease liabilities	Other current liabilities	$	350	$	364
Operating lease liabilities	Other long-term liabilities	1,114		906
Total operating lease liabilities		$	1,464	$	1,270

The components of our lease expenses were as follows (in millions):

	Three Months Ended				Nine Months Ended
	April 26, 2025		April 27, 2024		April 26, 2025		April 27, 2024
Operating lease expense	$	115	$	101	$	378	$	304
Short-term lease expense	18		19		52		55
Variable lease expense	47		43		140		149
Total lease expense	$	180	$	163	$	570	$	508

Supplemental information related to our operating leases is as follows (in millions):

	Nine Months Ended
	April 26, 2025		April 27, 2024
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	345	$	279
Right-of-use assets obtained in exchange for operating leases liabilities	$	483	$	307

The weighted-average lease term was 5.5 years and 4.9 years as of April 26, 2025 and July 27, 2024, respectively. The weighted-average discount rate was 4.0% as of each of April 26, 2025 and July 27, 2024.

The maturities of our operating leases (undiscounted) as of April 26, 2025 are as follows (in millions):

Fiscal Year	Amount
2025 (remaining three months)	$	113
2026	382
2027	292
2028	217
2029	175
Thereafter	470
Total lease payments	1,649
Less: interest	(185)
Total	$	1,464

(b)Lessor Arrangements

Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income was $16 million and $49 million for the third quarter and the first nine months of fiscal 2025, respectively, and $18 million and $48 million for the corresponding periods of fiscal 2024, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.

Future minimum lease payments on our lease receivables as of April 26, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining three months)	$	126
2026	552
2027	239
2028	41
2029	43
Thereafter	24
Total	1,025
Less: Present value of lease payments	(922)
Unearned income	$	103

Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.

We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by us and the associated accumulated depreciation are summarized as follows (in millions):

	April 26, 2025		July 27, 2024
Operating lease assets	$	50	$	115
Accumulated depreciation	(13)		(61)
Operating lease assets, net	$	37	$	54

Our operating lease income was $9 million and $29 million for the third quarter and first nine months of fiscal 2025, respectively, and $14 million and $45 million for the corresponding periods of fiscal 2024, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of April 26, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining three months)	$	5
2026	15
2027	7
Total	$	27

Leases

Leases

(a)Lessee Arrangements

The following table presents our operating lease balances (in millions):

	Balance Sheet Line Item	April 26, 2025		July 27, 2024
Operating lease right-of-use assets	Other assets	$	1,219	1,066
Operating lease liabilities	Other current liabilities	$	350	$	364
Operating lease liabilities	Other long-term liabilities	1,114		906
Total operating lease liabilities		$	1,464	$	1,270

The components of our lease expenses were as follows (in millions):

	Three Months Ended				Nine Months Ended
	April 26, 2025		April 27, 2024		April 26, 2025		April 27, 2024
Operating lease expense	$	115	$	101	$	378	$	304
Short-term lease expense	18		19		52		55
Variable lease expense	47		43		140		149
Total lease expense	$	180	$	163	$	570	$	508

Supplemental information related to our operating leases is as follows (in millions):

	Nine Months Ended
	April 26, 2025		April 27, 2024
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	345	$	279
Right-of-use assets obtained in exchange for operating leases liabilities	$	483	$	307

The weighted-average lease term was 5.5 years and 4.9 years as of April 26, 2025 and July 27, 2024, respectively. The weighted-average discount rate was 4.0% as of each of April 26, 2025 and July 27, 2024.

The maturities of our operating leases (undiscounted) as of April 26, 2025 are as follows (in millions):

Fiscal Year	Amount
2025 (remaining three months)	$	113
2026	382
2027	292
2028	217
2029	175
Thereafter	470
Total lease payments	1,649
Less: interest	(185)
Total	$	1,464

(b)Lessor Arrangements

Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income was $16 million and $49 million for the third quarter and the first nine months of fiscal 2025, respectively, and $18 million and $48 million for the corresponding periods of fiscal 2024, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.

Future minimum lease payments on our lease receivables as of April 26, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining three months)	$	126
2026	552
2027	239
2028	41
2029	43
Thereafter	24
Total	1,025
Less: Present value of lease payments	(922)
Unearned income	$	103

Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.

We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by us and the associated accumulated depreciation are summarized as follows (in millions):

	April 26, 2025		July 27, 2024
Operating lease assets	$	50	$	115
Accumulated depreciation	(13)		(61)
Operating lease assets, net	$	37	$	54

Our operating lease income was $9 million and $29 million for the third quarter and first nine months of fiscal 2025, respectively, and $14 million and $45 million for the corresponding periods of fiscal 2024, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of April 26, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining three months)	$	5
2026	15
2027	7
Total	$	27