v3.26.1
Income Taxes (Tables)
 12 Months Ended
Jul. 25, 2026
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The provision for income taxes consists of the following (in millions):
Years EndedJuly 25, 2026July 26, 2025July 27, 2024
Federal:
Current$1,385 $956 $1,939 
Deferred(256)(838)(883)
1,129 118 1,056 
State:
Current271 431 388 
Deferred452 (250)11 
723 181 399 
Foreign:
Current860 665 559 
Deferred30 (44)(100)
890 621 459 
Total$2,742 $920 $1,914 
Income Before Provision for Income Taxes
Income before provision for income taxes consists of the following (in millions):
Years EndedJuly 25, 2026July 26, 2025July 27, 2024
United States$14,062 $9,500 $10,790 
International1,947 1,600 1,444 
Total$16,009 $11,100 $12,234 
Difference Between Income Taxes at Federal Statutory Rate and Provision for Income Taxes
The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following for fiscal 2026 (in millions, except percentages):
Year EndedJuly 25, 2026
Federal statutory rate$3,362 21.0 %
State taxes, net of federal tax benefit (1)
565 3.5 
Foreign tax effects300 1.9 
Effect of cross-border tax laws:
Foreign-derived intangible income deduction(625)(3.9)
Subpart F inclusion285 1.8 
Other15 0.1 
Tax credits:
R&D tax credits(430)(2.7)
Foreign tax credits(592)(3.7)
Other credits(4)— 
Nontaxable or nondeductible items:
Stock-based compensation(292)(1.8)
Other(19)(0.2)
Changes in unrecognized tax benefits177 1.1 
Total$2,742 17.1 %
(1) California state tax made up the majority (greater than 50 percent) of the tax effect in this category.
The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following for fiscal 2025 and 2024:
Years EndedJuly 26, 2025July 27, 2024
Federal statutory rate21.0 %21.0 %
Effect of:
State taxes, net of federal tax benefit1.3 2.8 
Foreign income at other than U.S. rates0.7 (0.3)
Tax credits(2.7)(2.4)
Foreign-derived intangible income deduction(6.0)(5.5)
Stock-based compensation0.7 0.7 
Impact of the Tax Act(6.5)— 
Other, net(0.2)(0.7)
Total8.3 %15.6 %
Schedule of Cash Flow, Supplemental Disclosures
Cash paid for income taxes, net of refunds, for fiscal 2026 is as follows (in millions):
Year EndedJuly 25, 2026
Federal$3,672 
State360 
Foreign789 
Total$4,821 
Aggregate Changes in Gross Unrecognized Tax Benefits
The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in millions):
Years EndedJuly 25, 2026July 26, 2025July 27, 2024
Beginning balance$2,337 $2,156 $2,137 
Additions based on tax positions related to the current year270 283 205 
Additions for tax positions of prior years128 81 256 
Reductions for tax positions of prior years(112)(68)(344)
Settlements(37)(75)(53)
Lapse of statute of limitations(96)(40)(45)
Ending balance$2,490 $2,337 $2,156 
Components of Deferred Tax Assets and Liabilities
The following table presents the breakdown for net deferred tax assets (in millions):
July 25, 2026July 26, 2025
Deferred tax assets$7,109 $7,356 
Deferred tax liabilities(85)(75)
Total net deferred tax assets$7,024 $7,281 
The following table presents the components of the deferred tax assets and liabilities (in millions):
July 25, 2026July 26, 2025
ASSETS
Inventory write-downs and capitalization$684 $532 
Deferred foreign income178 221 
IPR&D and purchased intangible assets878 961 
Depreciation208 242 
Deferred revenue1,819 1,933 
Credits and net operating loss carryforwards1,490 1,350 
Share-based compensation expense360 319 
Accrued compensation248 175 
Lease liabilities400 379 
Capitalized research expenditures4,396 4,182 
Other555 678 
Gross deferred tax assets11,216 10,972 
Valuation allowance(1,408)(910)
Total deferred tax assets9,808 10,062 
LIABILITIES
Goodwill and purchased intangible assets(1,946)(2,288)
ROU lease assets(340)(315)
Unrealized gains on investments(341)(50)
Other(157)(128)
Total deferred tax liabilities(2,784)(2,781)
Total net deferred tax assets$7,024 $7,281 
Change in Valuation Allowance for Deferred Tax Assets
The changes in the valuation allowance for deferred tax assets are summarized as follows (in millions):
July 25, 2026July 26, 2025July 27, 2024
Balance at beginning of fiscal year$910 $1,024 $754 
Additions498 33 148 
Additions from Splunk— — 147 
Deductions(2)(4)(4)
Write-offs— (145)(20)
Foreign exchange and other2 2 (1)
Balance at end of fiscal year$1,408 $910 $1,024