Income Taxes (Tables)

12 Months Ended

Sep. 27, 2025

The provision for income taxes for 2025, 2024 and 2023, consisted of the following (in millions):


	2025		2024		2023
Federal:
Current	$	11,487	$	5,571	$	9,445
Deferred	(1,804)		(3,080)		(3,644)
Total	9,683		2,491		5,801
State:
Current	1,680		1,726		1,570
Deferred	(139)		(298)		(49)
Total	1,541		1,428		1,521
Foreign:
Current	8,891		25,483		8,750
Deferred	604		347		669
Total	9,495		25,830		9,419
Provision for income taxes	$	20,719	$	29,749	$	16,741

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 (21% in 2025, 2024 and 2023) to income before provision for income taxes for 2025, 2024 and 2023 is as follows (dollars in millions):


	2025			2024			2023
Computed expected tax	$	27,873		$	25,932		$	23,885
Earnings of foreign subsidiaries	(8,120)			(5,311)			(5,744)
Change in valuation allowance	2,091			—			—
Research and development credit, net	(1,049)			(1,397)			(1,212)
Impact of the State Aid Decision	(486)			10,246			—
Other	410			279			(188)
Provision for income taxes	$	20,719		$	29,749		$	16,741
Effective tax rate	15.6		%	24.1		%	14.7		%

Significant Components of Deferred Tax Assets and Liabilities

As of September 27, 2025 and September 28, 2024, the significant components of the Company’s deferred tax assets and liabilities were as follows (in millions):


	2025		2024
Deferred tax assets:
Capitalized research and development	$	15,041	$	10,739
Tax credit carryforwards	8,643		8,856
Accrued liabilities and other reserves	6,154		6,114
Deferred revenue	2,953		3,413
Lease liabilities	2,577		2,410
Other	3,049		3,341
Total deferred tax assets	38,417		34,873
Less: Valuation allowance	(10,966)		(8,866)
Total deferred tax assets, net	27,451		26,007
Deferred tax liabilities:
Depreciation	3,276		2,551
Right-of-use assets	2,300		2,125
Minimum tax on foreign earnings	1,217		1,674
Other	678		455
Total deferred tax liabilities	7,471		6,805
Net deferred tax assets	$	19,980	$	19,202

Aggregate Changes in Gross Unrecognized Tax Benefits

The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for 2025, 2024 and 2023 is as follows (in millions):


	2025		2024		2023
Beginning balances	$	22,038	$	19,454	$	16,758
Increases related to tax positions taken during a prior year	1,971		1,727		2,044
Decreases related to tax positions taken during a prior year	(71)		(386)		(1,463)
Increases related to tax positions taken during the current year	3,795		2,542		2,628
Decreases related to settlements with taxing authorities	(2,939)		(1,070)		(19)
Decreases related to expiration of the statute of limitations	(1,552)		(229)		(494)
Ending balances	$	23,242	$	22,038	$	19,454