Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income before provision for income taxes was as follows:


	Year Ended December 31,
	2025		2024		2023
	(in thousands)
United States	$	12,198,273	$	9,101,391	$	5,602,762
Foreign	524,279		864,266		602,643
Income before income taxes	$	12,722,552	$	9,965,657	$	6,205,405

Schedule of Components of Provision for Income Taxes

The components of provision for income taxes for all periods presented were as follows:


	Year Ended December 31,
	2025		2024		2023
	(in thousands)
Current tax provision:
Federal	$	1,317,011	$	1,093,667	$	854,170
State	311,863		214,814		181,684
Foreign	561,577		536,915		304,539
Total current	2,190,451		1,845,396		1,340,393
Deferred tax provision:
Federal	(155,477)		(520,510)		(412,760)
State	(34,115)		(41,700)		(55,475)
Foreign	(259,508)		(29,160)		(74,743)
Total deferred	(449,100)		(591,370)		(542,978)
Provision for income taxes	$	1,741,351	$	1,254,026	$	797,415

Schedule of Reconciliation of Provision for Income Taxes

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:


	Year Ended December 31,
	2025
	(in thousands)		Percent
Tax at U.S. Statutory Rate	$	2,671,734	21.0	%
State and Local Income Taxes(1)	191,271		1.5	%
Foreign Tax Effects
Brazil
Withholding tax on services	238,233		1.9	%
Others	(77,189)		(0.6)	%
Other foreign jurisdictions	23,290		0.2	%
Effect of Cross-Border Tax Laws
Foreign-derived intangible income	(656,828)		(5.2)	%
Foreign tax credit for withholding taxes	(292,148)		(2.3)	%
Other	32,815		0.3	%
Tax Credits
Research and development tax credits	(184,709)		(1.5)	%
Other	(9,748)		(0.1)	%
Changes in Valuation Allowances	(8,615)		(0.1)	%
Nontaxable and Nondeductible items
Share-based payment awards	(393,156)		(3.1)	%
Others	80,904		0.6	%
Changes in Unrecognized Tax Benefits	130,400		1.0	%
Other Adjustments	(4,903)		0.1	%
Effective Tax Rate	$	1,741,351	13.7	%

(1) The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include New York state and city, California, Illinois, New Jersey, and New Mexico.

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows:


	Year Ended December 31,
	2024			2023
	(in thousands)
Expected tax expense at U.S. federal statutory tax rate	$	2,092,710		$	1,303,123
State income taxes, net of federal income tax effect	166,311			104,717
Foreign earnings at other than U.S. rates	13,909			(32,292)
Research and development tax credit	(185,312)			(87,036)
Excess tax benefits on stock-based compensation	(435,909)			(119,043)
Foreign-derived intangible income deduction	(502,968)			(426,597)
Nontaxable and nondeductible items	70,386			41,782
Other	34,899			12,761
Provision for income taxes	$	1,254,026		$	797,415
Effective Tax Rate	13		%	13		%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows:


	As of December 31,
	2025		2024
	(in thousands)
Deferred tax assets:
Stock-based compensation	$	438,684	$	440,889
Tax credits and net operating loss carryforwards	835,529		834,402
Capitalized research expenses	969,243		1,075,474
Accruals and reserves	370,568		152,142
Operating lease liabilities	520,170		522,489
OCI hedging losses	116,492		—
Unrealized losses	41,988		12,157
Other	29,426		18,197
Total deferred tax assets	3,322,100		3,055,750
Valuation allowance	(617,575)		(540,272)
Net deferred tax assets	2,704,525		2,515,478
Deferred tax liabilities:
Depreciation & amortization	(32,780)		(370,709)
Operating right-of-use lease assets	(448,313)		(449,661)
OCI hedging gains	—		(220,009)
Acquired intangibles	(261,493)		(282,187)
Other	(7,136)		(15,354)
Total deferred tax liabilities	(749,722)		(1,337,920)
Net deferred tax assets	$	1,954,803	$	1,177,558

The following table shows the deferred tax assets and liabilities within our Consolidated Balance Sheets:


	As of December 31,
	2025		2024
	(in thousands)
Total deferred tax assets:
Other non-current assets	$	2,062,078	$	1,290,160
Total deferred tax liabilities:
Other non-current liabilities	(107,275)		(112,602)
Net deferred tax assets	$	1,954,803	$	1,177,558

Schedule of Changes in Unrecognized Tax Benefits

The aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows:


	As of December 31,
	2025		2024		2023
	(in thousands)
Balance at the beginning of the year	$	432,280	$	327,105	$	226,977
Increases related to tax positions taken during the current period	96,108		93,325		65,630
Increases related to tax positions taken during prior periods	50,285		15,751		76,794
Decreases related to tax positions taken during prior periods	(3,195)		(3,901)		(10,117)
Decreases related to settlements with taxing authorities	(9,115)		—		(32,179)
Decreases related to expiration of statute of limitations	—		—		—
Balance at the end of the year	$	566,363	$	432,280	$	327,105

Schedule of Income Taxes Paid

The amounts of cash income taxes paid by the Company were as follows:


	Year Ended December 31,
	2025
	(in thousands)
Federal	$	1,120,172
State and local	273,976
Foreign
Brazil	275,106
Korea	195,302
All other foreign	355,828
Income taxes, net of amounts refunded	$	2,220,384