v3.26.1
Balance Sheet Details
 9 Months Ended
Jul. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Details 5: Balance Sheet Details
Cash, Cash Equivalents and Restricted Cash
As of
July 31, 2026October 31, 2025
In millions
Cash and cash equivalents $6,216 $5,773 
Restricted cash(1)
62 86 
Total$6,278 $5,859 
(1)    The Company included restricted cash in Other current assets in the accompanying Condensed Consolidated Balance Sheets.
Inventory
As of
July 31, 2026October 31, 2025
In millions
Purchased parts and fabricated assemblies$8,419 $4,139 
Finished goods3,404 2,213 
Total$11,823 $6,352 
The Company recorded a net provision for excess or obsolete inventory to cost of sales totaling $158 million and $440 million for the three and nine months ended July 31, 2026, respectively.
Property, Plant and Equipment, net
As of
July 31, 2026October 31, 2025
In millions
Land$249 $309 
Internal use software2,474 2,259 
Buildings and leasehold improvements1,855 2,075 
Machinery and equipment, including equipment held for lease7,858 7,987 
Gross property, plant and equipment12,436 12,630 
Accumulated depreciation(6,791)(6,628)
Property, plant and equipment, net$5,645 $6,002 
Supplier Financing Arrangements
The Company enters into supplier financing arrangements with external financial institutions. Under these arrangements,
suppliers can choose to settle outstanding payment obligations at a discount. The Company holds no economic interest in suppliers' participation, nor does it provide guarantees or pledge assets under these arrangements. Invoices are settled with the financial institutions based on the original supplier payment terms. These arrangements do not alter the Company's rights and obligations towards suppliers, including scheduled payment terms. Liabilities associated with the funded participation in these arrangements, presented within Accounts payable on the Condensed Consolidated Balance Sheets, amounted to $791 million and $488 million as of July 31, 2026 and October 31, 2025, respectively.
The rollforward of outstanding obligations confirmed as valid under its supplier finance program for the nine months ended July 31, 2026, and the fiscal year ended October 31, 2025 were as follows:
As of
July 31, 2026October 31, 2025
In millions
Balance at beginning of period
$488 $466 
Invoices confirmed during the year
1,794 1,895 
Confirmed invoices paid during the year
(1,490)(1,873)
Balance at end of period
$791 $488 
Warranties
The Company's aggregate product warranty liabilities and changes for the nine months ended July 31, 2026, and the fiscal year ended October 31, 2025 were as follows:
As of
July 31, 2026October 31, 2025
In millions
Balance at beginning of period$284 $301 
Charges99 206 
Adjustments related to pre-existing warranties(10)(55)
Settlements made (96)(168)
Balance at end of period(1)
$277 $284 
(1)The Company included the current portion in Other accrued liabilities, and amounts due after one year in Other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets.
Severance Charges
The Company incurs costs related to employee severance and records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. As of July 31, 2026, $92 million and $29 million was recorded in Other Accrued Liabilities and Other Non-current liabilities, respectively. As of October 31, 2025, $204 million and $34 million was recorded in Other accrued liabilities and Other Non-current liabilities, respectively.
The following table presents the activity related to the Company’s severance liability for the period indicated:
As of
July 31, 2026October 31, 2025
In millions
Balance at beginning of period$238 $49 
Severance charges120 418 
Cash paid and other(237)(229)
Balance at end of period$121 $238 
The following table presents severance charges as included in the Condensed Consolidated Statements of Earnings for the periods indicated:
For the three months ended July 31,For the nine months ended July 31,
2026202520262025
In millions
Cost of sales$14 $— $26 $63 
Research and development— — 7 31 
Selling, general and administrative15 — 41 147 
Acquisition, disposition and other charges9 15 46 15 
Total severance charges$38 $15 $120 $256 
Contract Balances
The Company’s contract balances consist of contract assets, contract liabilities, and costs to obtain a contract with a customer.
Contract Assets
A summary of accounts receivable, net, including unbilled receivables was as follows:
As of
July 31, 2026October 31, 2025
In millions
Accounts receivable$5,821 $4,916 
Unbilled receivables380 396 
Allowances(16)(22)
Total$6,185 $5,290 
The allowances for credit losses related to accounts receivable and changes for the nine months ended July 31, 2026, and the fiscal year ended October 31, 2025 were as follows:
As of
July 31, 2026October 31, 2025
In millions
Balance at beginning of period$22 $10 
Provision for credit losses14 33 
Adjustments to existing allowances, including write offs(20)(21)
Balance at end of period$16 $22 
Sale of Trade Receivables
For the three and nine months ended July 31, 2026, the Company sold $1.4 billion and $3.8 billion of trade receivables, respectively. For the fiscal year ended October 31, 2025, the Company sold $3.7 billion of trade receivables. The Company recorded an obligation of $49 million and $59 million within Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of July 31, 2026 and October 31, 2025, respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred.
Contract Liabilities and Remaining Performance Obligations
Contract liabilities consist of deferred revenue and customer deposits. A summary of contract liabilities were as follows:
As of
July 31, 2026October 31, 2025
LocationIn millions
Customer depositsOther accrued liabilities$348 $616 
Customer deposits - non-currentOther non-current liabilities57 72 
Total customer deposits$405 $688 
Deferred revenueDeferred revenue$5,561 $5,358 
Deferred revenue - non-currentOther non-current liabilities5,359 4,980 
Total deferred revenue$10,920 $10,338 
For the nine months ended July 31, 2026, approximately $4.8 billion of revenue was recognized relating to contract liabilities recorded as of October 31, 2025.
Revenue allocated to remaining performance obligations represents contract work that has not yet been performed and does not include contracts where the customer is not committed. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations, changes in the scope of contracts, adjustments for revenue that has not materialized and adjustments for currency. As of July 31, 2026, the aggregate amount of deferred revenue, was $10.9 billion. The Company expects to recognize approximately 26% of this balance over fiscal 2026, 31% over fiscal 2027, 20% over fiscal 2028, 12% over fiscal 2029, and 10% over fiscal 2030 and thereafter. The Company receives payments in advance of completion of its contractual obligations; these payments are considered customer deposits. As customer acceptance milestones are met, the Company will recognize revenue and reduce the amount of contract liabilities. As of July 31, 2026, the aggregate amount of customer deposits was $405 million. The Company expects to recognize $348 million over the next twelve months and the remaining balance thereafter.
Costs to Obtain a Contract
As of July 31, 2026, the current and non-current portions of the capitalized costs to obtain a contract were $101 million and $153 million, respectively. As of October 31, 2025, the current and non-current portions of the capitalized costs to obtain a contract were $109 million and $128 million, respectively. The current and non-current portions of the capitalized costs to obtain a contract were included in Other current assets, and Long-term financing receivables and other assets, respectively, in the Condensed Consolidated Balance Sheets. For the three and nine months ended July 31, 2026 the Company amortized $30 million and $86 million, of capitalized costs to obtain a contract. For the three and nine months ended July 31, 2025 the Company amortized $88 million and $142 million, of capitalized costs to obtain a contract. The amortized capitalized costs to obtain a contract are included in Selling, general and administrative expense in the Condensed Consolidated Statements of Earnings.