Income Taxes (Tables)

12 Months Ended

Sep. 26, 2026

Income Before Provision for Income Taxes

Income before provision for income taxes for 2026, 2025 and 2024 consisted of the following (in millions):


	2026		2025		2024
Domestic	$	63,732	$	50,722	$	46,169
Foreign	95,505		82,007		77,316
Income before provision for income taxes	$	159,237	$	132,729	$	123,485

Provision for Income Taxes

The provision for income taxes for 2026, 2025 and 2024 consisted of the following (in millions):


	2026		2025		2024
Federal:
Current	$	11,307	$	11,487	$	5,571
Deferred	594		(1,804)		(3,080)
Total	11,901		9,683		2,491
State and local:
Current	2,409		1,680		1,726
Deferred	(36)		(139)		(298)
Total	2,373		1,541		1,428
Foreign:
Current	12,625		8,891		25,483
Deferred	163		604		347
Total	12,788		9,495		25,830
Provision for income taxes	$	27,062	$	20,719	$	29,749

Reconciliation of Provision for Income Taxes to Amount Computed by Applying the Statutory Federal Income Tax Rate to Income Before Provision for Income Taxes

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income before provision for income taxes for 2026 is as follows (dollars in millions):


	2026
	Amount		Percent
Computed statutory federal income tax	$	33,440	21.0	%
Foreign tax effects:
Ireland
Tax rate difference	(3,464)		(2.2)	%
Other	897		0.6	%
Singapore
Tax rate difference, including incentives	(5,492)		(3.4)	%
Qualified Domestic Minimum Top-up Tax	2,510		1.6	%
Other	311		0.2	%
Other foreign jurisdictions	2,341		1.5	%
Effect of cross-border tax laws	(2,307)		(1.5)	%
Tax credits:
Research and development credits	(1,894)		(1.2)	%
Other	(273)		(0.2)	%
Other	993		0.6	%
Provision for income taxes	$	27,062	17.0	%

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate (21% in 2025 and 2024) to income before provision for income taxes for 2025 and 2024 is as follows (dollars in millions):


	2025			2024
Computed expected tax	$	27,873		$	25,932
Earnings of foreign subsidiaries	(8,120)			(5,311)
Change in valuation allowance	2,091			—
Research and development credit, net	(1,049)			(1,397)
Impact of the State Aid Decision	(486)			10,246
Other	410			279
Provision for income taxes	$	20,719		$	29,749
Effective tax rate	15.6		%	24.1		%

Significant Components of Deferred Tax Assets and Liabilities

As of September 26, 2026 and September 27, 2025, the significant components of the Company’s deferred tax assets and liabilities were as follows (in millions):


	2026		2025
Deferred tax assets:
Capitalized research and development	$	13,656	$	15,041
Tax credit carryforwards	10,046		8,643
Accrued liabilities and other reserves	6,678		6,154
Deferred revenue	2,797		2,953
Lease liabilities	2,643		2,577
Other	3,579		3,049
Total deferred tax assets	39,399		38,417
Less: Valuation allowance	(13,260)		(10,966)
Total deferred tax assets, net	26,139		27,451
Deferred tax liabilities:
Depreciation	2,379		3,276
Right-of-use assets	2,331		2,300
Minimum tax on foreign earnings	1,089		1,217
Other	812		678
Total deferred tax liabilities	6,611		7,471
Net deferred tax assets	$	19,528	$	19,980

Aggregate Changes in Gross Unrecognized Tax Benefits

The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for 2026, 2025 and 2024 is as follows (in millions):


	2026		2025		2024
Beginning balances	$	23,242	$	22,038	$	19,454
Increases related to tax positions taken during a prior year	1,267		1,971		1,727
Decreases related to tax positions taken during a prior year	(2,827)		(71)		(386)
Increases related to tax positions taken during the current year	4,068		3,795		2,542
Decreases related to settlements with taxing authorities	(264)		(2,939)		(1,070)
Decreases related to expiration of the statute of limitations	(2,999)		(1,552)		(229)
Ending balances	$	22,487	$	23,242	$	22,038

Cash Paid for Income Taxes

Cash paid for income taxes, net in 2026 consisted of the following (in millions):


	2026
Federal	$	19,011
State and local	1,669
Foreign:
Ireland	4,956
Singapore	3,253
Other	5,699
Total	$	34,588