v3.25.2
Leases
 12 Months Ended
Jul. 26, 2025
Leases [Abstract]  
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemJuly 26, 2025July 27, 2024
Operating lease ROU assetsOther assets$1,301 $1,066 
Operating lease liabilitiesOther current liabilities$375 $364 
Operating lease liabilitiesOther long-term liabilities1,175 906 
Total operating lease liabilities$1,550 $1,270 
The components of our lease expenses were as follows (in millions):
Years EndedJuly 26, 2025July 27, 2024July 29, 2023
Operating lease expense$495 $420 $425 
Short-term lease expense77 75 65 
Variable lease expense191 194 242 
Total lease expense$763 $689 $732 
Supplemental information related to our operating leases is as follows (in millions):
Years EndedJuly 26, 2025July 27, 2024
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $457 $394 
ROU assets obtained in exchange for operating leases liabilities$660 $459 
The weighted-average lease term was 5.7 years and 4.9 years as of July 26, 2025 and July 27, 2024, respectively. The weighted-average discount rate was 4.1% and 4.0% as of July 26, 2025 and July 27, 2024, respectively.
The maturities of our operating leases (undiscounted) as of July 26, 2025 are as follows (in millions):
Fiscal YearAmount
2026$429 
2027322 
2028247 
2029200 
2030181 
Thereafter369 
Total lease payments1,748 
Less interest(198)
Total$1,550 
(b)Lessor Arrangements
Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income for fiscal 2025, 2024, and 2023 was $66 million, $65 million and $51 million, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.
Future minimum lease payments on our lease receivables as of July 26, 2025 are summarized as follows (in millions):
Fiscal YearAmount
2026$342 
2027163 
2028234 
2029177 
203034 
Thereafter32 
Total982 
Less: Present value of lease payments883 
Unearned income$99 
Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.
We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by us and the associated accumulated depreciation are summarized as follows (in millions):
July 26, 2025July 27, 2024
Operating lease assets$51 $115 
Accumulated depreciation(17)(61)
Operating lease assets, net$34 $54 
Our operating lease income for fiscal 2025, 2024, and 2023 was $37 million, $58 million and $73 million, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of July 26, 2025 are summarized as follows (in millions):
Fiscal YearAmount
2026$16 
20277 
20282 
Total$25 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemJuly 26, 2025July 27, 2024
Operating lease ROU assetsOther assets$1,301 $1,066 
Operating lease liabilitiesOther current liabilities$375 $364 
Operating lease liabilitiesOther long-term liabilities1,175 906 
Total operating lease liabilities$1,550 $1,270 
The components of our lease expenses were as follows (in millions):
Years EndedJuly 26, 2025July 27, 2024July 29, 2023
Operating lease expense$495 $420 $425 
Short-term lease expense77 75 65 
Variable lease expense191 194 242 
Total lease expense$763 $689 $732 
Supplemental information related to our operating leases is as follows (in millions):
Years EndedJuly 26, 2025July 27, 2024
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $457 $394 
ROU assets obtained in exchange for operating leases liabilities$660 $459 
The weighted-average lease term was 5.7 years and 4.9 years as of July 26, 2025 and July 27, 2024, respectively. The weighted-average discount rate was 4.1% and 4.0% as of July 26, 2025 and July 27, 2024, respectively.
The maturities of our operating leases (undiscounted) as of July 26, 2025 are as follows (in millions):
Fiscal YearAmount
2026$429 
2027322 
2028247 
2029200 
2030181 
Thereafter369 
Total lease payments1,748 
Less interest(198)
Total$1,550 
(b)Lessor Arrangements
Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income for fiscal 2025, 2024, and 2023 was $66 million, $65 million and $51 million, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.
Future minimum lease payments on our lease receivables as of July 26, 2025 are summarized as follows (in millions):
Fiscal YearAmount
2026$342 
2027163 
2028234 
2029177 
203034 
Thereafter32 
Total982 
Less: Present value of lease payments883 
Unearned income$99 
Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.
We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by us and the associated accumulated depreciation are summarized as follows (in millions):
July 26, 2025July 27, 2024
Operating lease assets$51 $115 
Accumulated depreciation(17)(61)
Operating lease assets, net$34 $54 
Our operating lease income for fiscal 2025, 2024, and 2023 was $37 million, $58 million and $73 million, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of July 26, 2025 are summarized as follows (in millions):
Fiscal YearAmount
2026$16 
20277 
20282 
Total$25 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemJuly 26, 2025July 27, 2024
Operating lease ROU assetsOther assets$1,301 $1,066 
Operating lease liabilitiesOther current liabilities$375 $364 
Operating lease liabilitiesOther long-term liabilities1,175 906 
Total operating lease liabilities$1,550 $1,270 
The components of our lease expenses were as follows (in millions):
Years EndedJuly 26, 2025July 27, 2024July 29, 2023
Operating lease expense$495 $420 $425 
Short-term lease expense77 75 65 
Variable lease expense191 194 242 
Total lease expense$763 $689 $732 
Supplemental information related to our operating leases is as follows (in millions):
Years EndedJuly 26, 2025July 27, 2024
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $457 $394 
ROU assets obtained in exchange for operating leases liabilities$660 $459 
The weighted-average lease term was 5.7 years and 4.9 years as of July 26, 2025 and July 27, 2024, respectively. The weighted-average discount rate was 4.1% and 4.0% as of July 26, 2025 and July 27, 2024, respectively.
The maturities of our operating leases (undiscounted) as of July 26, 2025 are as follows (in millions):
Fiscal YearAmount
2026$429 
2027322 
2028247 
2029200 
2030181 
Thereafter369 
Total lease payments1,748 
Less interest(198)
Total$1,550 
(b)Lessor Arrangements
Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income for fiscal 2025, 2024, and 2023 was $66 million, $65 million and $51 million, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.
Future minimum lease payments on our lease receivables as of July 26, 2025 are summarized as follows (in millions):
Fiscal YearAmount
2026$342 
2027163 
2028234 
2029177 
203034 
Thereafter32 
Total982 
Less: Present value of lease payments883 
Unearned income$99 
Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.
We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by us and the associated accumulated depreciation are summarized as follows (in millions):
July 26, 2025July 27, 2024
Operating lease assets$51 $115 
Accumulated depreciation(17)(61)
Operating lease assets, net$34 $54 
Our operating lease income for fiscal 2025, 2024, and 2023 was $37 million, $58 million and $73 million, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of July 26, 2025 are summarized as follows (in millions):
Fiscal YearAmount
2026$16 
20277 
20282 
Total$25