What changed in this filing

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Item 1. Financial Statements

2026-08-05 compared with 2026-05-06 · 79 added, 58 removed, 374 unchanged (27% of the section changed)

3 unchanged sentences

(In millions, except par value)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

CURRENT ASSETS:

22 unchanged sentences

STOCKHOLDERS’ EQUITY:

Preferred stock, $ 0.0001 par value— 100 shares authorized and no shares issued and outstanding as of March 31, 2026 and December 31, 2025

Common stock, $ 0.0001 par value— 4,000 shares authorized as of March 31, 2026 and December 31, 2025;

1,259.2 and 1,256.5 shares issued and outstanding as of March 31, 2026 and December 31, 2025

Preferred stock, $ 0.0001 par value— 100 shares authorized and no shares issued and outstanding as of June 30, 2026 and December 31, 2025

Common stock, $ 0.0001 par value— 4,000 shares authorized as of June 30, 2026 and December 31, 2025;

1,261.2 and 1,256.5 shares issued and outstanding as of June 30, 2026 and December 31, 2025

Additional paid-in capital 3,155.3 2,911.8

7 unchanged sentences

(Unaudited, in millions, except per share amounts)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

2026 2025 2026 2025

Product $ 2,605.2 $ 1,877.0 $ 4,916.5 $ 3,569.5

26 unchanged sentences

(Unaudited, in millions)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income $ 1,212.9 $ 888.8 $ 2,235.8 $ 1,702.6

10 unchanged sentences

(Unaudited, in millions)

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026 Six Months Ended June 30, 2026

Common Stock Additional

2 unchanged sentences

Comprehensive

Stockholders’ Equity Common Stock Additional

Paid-In Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss) Total

Stockholders’ Equity

Shares Amount

Stockholders’

Shares Amount Shares Amount

Balance at beginning of period 1,259.2 $ 0.1 $ 3,036.4 $ 10,469.9 $ ( 19.3 ) $ 13,487.1 1,256.5 $ 0.1 $ 2,911.8 $ 9,446.6 $ 12.0 $ 12,370.5

6 unchanged sentences

Balance at end of period 1,261.2 $ 0.1 $ 3,155.3 $ 11,682.8 $ ( 40.5 ) $ 14,797.7 1,261.2 $ 0.1 $ 3,155.3 $ 11,682.8 $ ( 40.5 ) $ 14,797.7

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025 Six Months Ended June 30, 2025

Common Stock Additional

3 unchanged sentences

Income (Loss) Total

Stockholders’ Equity

Shares Amount

Stockholders’ Equity Common Stock Additional

Paid-In Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss) Total

Stockholders’

Shares Amount Shares Amount

Balance at beginning of period 1,256.6 $ 0.1 $ 2,551.7 $ 7,569.2 $ ( 1.9 ) $ 10,119.1 1,261.3 $ 0.1 $ 2,465.4 $ 7,542.5 $ ( 13.2 ) $ 9,994.8

10 unchanged sentences

(Unaudited, in millions)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

19 unchanged sentences

Purchases of property and equipment ( 84.2 ) ( 52.4 )

Cash paid for business combinations, net of cash acquired — ( 300.0 )

Other ( 35.0 ) —

Net cash used in investing activities ( 2,445.1 ) ( 1,391.0 )

25 unchanged sentences

In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information.

The results for the three months ended March 31, 2026, are not necessarily indicative of the results expected for the full fiscal year.

The results for the three and six months ended June 30, 2026, are not necessarily indicative of the results expected for the full fiscal year.

The condensed consolidated balance sheet as of December 31, 2025 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements.

28 unchanged sentences

The following tables summarize the fair value of these financial assets by significant investment category and their levels within the fair value hierarchy (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Level I Level II Level III Total Level I Level II Level III Total

5 unchanged sentences

government notes — — — — 124.9 — — 124.9

Agency securities — 20.0 — 20.0 — — — —

710.9 56.2 — 767.1 1,299.7 36.4 — 1,336.1

9 unchanged sentences

Total Financial Assets $ 3,585.1 $ 8,236.5 $ — $ 11,821.6 $ 4,155.4 $ 5,961.2 $ — $ 10,116.6

During the three months ended March 31, 2026, the Company did not make any transfers between the levels of the fair value hierarchy.

During the three and six months ended June 30, 2026, the Company did not make any transfers between the levels of the fair value hierarchy.

The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our debt securities measured at fair value on a recurring basis (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value

9 unchanged sentences

Given the relatively short-term and conservative nature of our portfolio, our debt securities are generally not subject to credit risk;

therefore, we did not recognize any credit losses or non-credit-related impairments related to such securities for the three months ended March 31, 2026.

therefore, we did not recognize any credit losses or non-credit-related impairments related to such securities for the three and six months ended June 30, 2026.

All unrealized gains or losses were recognized in other comprehensive income (loss).

Realized gains or losses were immaterial for the three months ended March 31, 2026.

Realized gains or losses were immaterial for the three and six months ended June 30, 2026.

The following table is an analysis of our debt securities in unrealized loss positions (in millions):

March 31, 2026

Unrealized Losses within 12 months Unrealized Losses 12 months or greater Total

Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses

Commercial paper $ 10.0 $ — $ — $ — $ 10.0 $ —

June 30, 2026

Unrealized Losses within 12 months

Fair Value Unrealized Losses

government notes 2,113.7 ( 9.4 )

3 unchanged sentences

Total $ 8,489.7 $ ( 40.8 )

As of March 31, 2026, we had no marketable debt securities with contractual maturities that exceeded three years .

Debt securities in unrealized losses positions 12 months or greater were not material as of June 30, 2026

As of June 30, 2026, we had no marketable debt securities with contractual maturities that exceeded three years .

The fair values of marketable debt securities, by remaining contractual maturities, are as follows (in millions):

March 31, 2026

June 30, 2026

Due in 1 year or less $ 4,365.2

1 unchanged sentence

Total debt securities $ 11,053.1

The weighted-average remaining duration of our marketable debt securities is approximately 1.4 years as of March 31, 2026.

The weighted-average remaining duration of our marketable debt securities is approximately 1.4 years as of June 30, 2026.

As we view these marketable debt securities as available to support current operations, we classify marketable debt securities with maturities beyond 12 months as current assets under the caption "Marketable securities" on the condensed consolidated balance sheets.

1 unchanged sentence

Inventories consist of the following (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Raw materials $ 859.6 $ 611.2

2 unchanged sentences

Total inventories $ 2,535.3 $ 2,247.1

(1) The balance includes evaluation inventory totaling $ 525.7 million and $ 403.7 million as of March 31, 2026 and December 31, 2025, respectively.

(1) The balance includes evaluation inventory totaling $ 616.0 million and $ 403.7 million as of June 30, 2026 and December 31, 2025, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Deferred cost of goods sold (1)

2 unchanged sentences

Total prepaid expenses and other current assets $ 2,018.6 $ 1,510.0

(1) The increase in the quarter ended March 31, 2026 was driven by a corresponding increase in deferred product revenue.

(1) The increase as of June 30, 2026 was driven by a corresponding increase in deferred product revenue.

Property and Equipment, net

Property and equipment, net consists of the following (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Land $ 47.3 $ 47.3

11 unchanged sentences

The following table summarizes the activity related to our contract liabilities (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Contract liabilities, beginning balance $ 273.7 $ 160.5 $ 250.1 $ 160.8

2 unchanged sentences

Contract liabilities, ending balance $ 278.4 $ 188.1 $ 278.4 $ 188.1

As of March 31, 2026 and December 31, 2025, $ 131.0 million and $ 114.0 million of our contract liabilities, respectively, were included in "Other current liabilities" with the remaining balances included in "Other long-term liabilities" on the condensed consolidated balance sheets.

As of June 30, 2026 and December 31, 2025, $ 133.9 million and $ 114.0 million of our contract liabilities, respectively, were included in "Other current liabilities" with the remaining balances included in "Other long-term liabilities" on the condensed consolidated balance sheets.

Deferred Revenue

1 unchanged sentence

The following table summarizes the activity related to our deferred revenue (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Deferred revenue, beginning balance

4 unchanged sentences

Other Performance Obligations

Other performance obligations totaling $ 1.2 billion as of March 31, 2026 include unbilled multi-year PCS and service contract amounts of $ 264.6 million, and $ 968.4 million of binding contractual agreements with certain customers that are primarily related to future product shipments.

Other performance obligations totaling $ 1.3 billion as of June 30, 2026 include unbilled multi-year PCS and service contract amounts of $ 427.8 million, and $ 875.1 million of binding contractual agreements with certain customers that are primarily related to future product shipments.

Revenue from Total Remaining Performance Obligations

T otal revenue from our contract liabilities, deferred revenue and other performance obligations that is expected to be recognized in future periods amounts to $ 7.7 billion as of March 31, 2026 .

T otal revenue from our contract liabilities, deferred revenue and other performance obligations that is expected to be recognized in future periods amounts to $ 8.4 billion as of June 30, 2026 .

A pproximately 91 % of this future revenue is expected to be recognized over the next two years and the remaining 9 % is expected to be recognized during the third to the fifth year.

1 unchanged sentence

Other income (expense), net consists of the following (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Interest income $ 122.4 $ 90.4 $ 231.5 $ 180.6

5 unchanged sentences

A portion of the goodwill is deductible for tax purposes.

There was no change in the carrying value of goodwill for the three months ended March 31, 2026.

There was no change in the carrying value of goodwill for the three and six months ended June 30, 2026.

Acquisition-Related Intangible Assets

1 unchanged sentence

Acquisition-related intangible assets, excluding those that are fully amortized and no longer have economic benefit, were as follows (in millions, except years):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Weighted-Average Remaining Useful Lives (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount

12 unchanged sentences

A significant portion of our purchase orders for finished goods and strategic components, including integrated circuits consigned to contract manufacturers, consists of non-cancellable commitments.

Our purchase obligations also encompass software and technology licenses, property and equipment, and other corporate goods and services.

As of March 31, 2026, we had non-cancellable purchase commitments not recorded on our balance sheet of $ 8.9 billion, of which $ 7.6 billion have expected receipt dates within 12 months, and $ 1.3 billion have expected receipt dates greater than 12 months.

As of June 30, 2026, we had non-cancellable purchase commitments not recorded on our balance sheet of $ 9.7 billion, of which $ 9.4 billion have expected receipt dates within 12 months, and $ 0.3 billion have expected receipt dates greater than 12 months.

These open purchase orders are considered enforceable and legally binding, and while we may have some limited ability to reschedule, and adjust our requirements based on our business needs prior to the delivery of goods or performance of services, this can only occur with the agreement of the related supplier.

We also had deposits to our contract manufacturers to secure our purchase commitments in the amount of $ 95.5 million and $ 53.0 million as of March 31, 2026 and December 31, 2025, respectively, which were recorded within prepaid expenses and other current assets, as well as other assets in the condensed consolidated balance sheets.

We also had deposits to our contract manufacturers to secure our purchase commitments in the amount of $ 124.4 million and $ 53.0 million as of June 30, 2026 and December 31, 2025, respectively, which were recorded within prepaid expenses and other current assets, as well as other assets in the condensed consolidated balance sheets.

Property Project

During the year ended December 31, 2021, we purchased land and the improvements thereon in Santa Clara, California to construct a building for office, lab and data center space.

As of March 31, 2026, the estimated remaining capital expenditures related to this project are expected to be approximately $ 130.0 million to $ 150.0 million through the end of fiscal 2026 when we expect construction to be completed.

As of June 30, 2026, the estimated remaining capital expenditures related to this project are expected to be approximately $ 110.0 million to $ 135.0 million through the end of fiscal 2026 when we expect construction to be completed.

We have entered into agreements with some of our direct customers and channel partners that contain indemnification provisions relating to potential situations where claims could be alleged that our products infringe the intellectual property rights of a third party.

5 unchanged sentences

We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

As of March 31, 2026, provisions recorded for contingent losses related to other claims and matters have not been significant.

As of June 30, 2026, provisions recorded for contingent losses related to other claims and matters have not been significant.

Based on currently-available information, management does not believe that any additional liabilities relating to other unresolved matters are probable or that the amount of any resulting loss is estimable, and believes these other matters are not likely, individually and in the aggregate, to have a material adverse effect on our financial position, results of operations or cash flows;

2 unchanged sentences

Stockholders’ Equity and Stock-Based Compensation

Stock Repurchase Programs

Stock Repurchase Program

In May 2025 our board of directors authorized a $ 1.5 billion stock repurchase program (the “Repurchase Program”).

2 unchanged sentences

The Repurchase Program does not obligate us to acquire any of our common stock and may be suspended or discontinued by the Company at any time without prior notice.

We did not repurchase any shares during the three months ended March 31, 2026.

As of March 31, 2026, the remaining authorized amount for repurchases under the Repurchase Program was $ 817.9 million.

We did not repurchase any shares during the six months ended June 30, 2026.

As of June 30, 2026, the remaining authorized amount for repurchases under the Repurchase Program was $ 817.9 million.

Equity Award Plan Activities

8 unchanged sentences

RSUs forfeited/canceled ( 0.7 ) 65.93

Unvested balance—March 31, 2026 26.3 $ 73.50

Unvested balance—June 30, 2026 24.6 $ 77.36

Stock-Based Compensation Expense

The following table summarizes the stock-based compensation expense related to our equity awards (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Cost of revenue $ 7.4 $ 5.8 $ 14.4 $ 11.3

1 unchanged sentence

Sales and marketing

32.2 18.8 62 38.7

General and administrative 10.7 7.4 22.6 18.0

Total stock-based compensation $ 120.4 $ 85.2 $ 241.3 $ 178.2

As of March 31, 2026, there were $ 1.5 billion of unamortized compensation costs related to all unvested awards.

As of June 30, 2026, there were $ 1.5 billion of unamortized compensation costs related to all unvested awards.

The unamortized compensation costs are expected to be recognized over a weighted-average period of approximately 3.9 years.

4 unchanged sentences

The following table sets forth the computation of our basic and diluted net income per share (in millions, except per share amounts):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income $ 1,212.9 $ 888.8 $ 2,235.8 $ 1,702.6

7 unchanged sentences

The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because their effect would have been anti-dilutive for the periods presented (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Employee equity awards — 3.2 0.4 2.0

Income Taxes (in millions, except percentages)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Income before income taxes $ 1,504.3 $ 1,080.2 $ 2,775.7 $ 2,035.2

1 unchanged sentence

Effective tax rate 19.4 % 17.7 % 19.5 % 16.3 %

The increase in the effective tax rate in the three months ended March 31, 2026, as compared to the same period in 2025, was primarily due to a decrease in tax benefits attributable to equity-based compensation.

The increase in the effective tax rate in the three and six months ended June 30, 2026, as compared to the same periods in 2025, was primarily due to a decrease in tax benefits attributable to equity-based compensation.

Segment and Geographical Information

13 unchanged sentences

The following table represents revenue based on customers’ shipping addresses (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

$ 2,337.9 $ 1,724.1 $ 4,628.0 $ 3,322.6

Europe, Middle East and Africa 438.2 281.6 673.2 456.2

2 unchanged sentences

(1) Includes $ 2,319.6 million and $ 1,712.1 million revenue generated from the U.S.

for the three months ended March 31, 2026 and March 31, 2025, respectively.

for the three months ended June 30, 2026 and June 30, 2025, respectively, and $ 4,591.7 million and $ 3,293.6 million for the six months ended June 30, 2026 and June 30, 2025, respectively.

Long-lived assets, net, excluding intercompany receivables, investments in subsidiaries, investments in privately-held companies and deferred tax assets, by location are summarized as follows (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

United States $ 287.9 $ 184.8

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements