Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income before Provision for Income Taxes

Our income before provision for (benefit from) income taxes for the years ended December 31, 2025, 2024 and 2023 was as follows (in millions):


	Year Ended December 31,
	2025		2024		2023
Domestic	$	4,766	$	2,292	$	3,196
Noncontrolling interest and redeemable noncontrolling interest	61		62		(23)
Foreign	451		6,636		6,800
Income before income taxes	$	5,278	$	8,990	$	9,973

Components of Provision for Income Taxes

The components of the provision for (benefit from) income taxes for the years ended December 31, 2025, 2024 and 2023 consisted of the following (in millions):


	Year Ended December 31,
	2025		2024		2023
Current:
Federal	$	—	$	—	$	48
State	5		45		57
Foreign	1,295		1,315		1,243
Total current	1,300		1,360		1,348
Deferred:
Federal	434		831		(5,246)
State	21		(49)		(653)
Foreign	(332)		(305)		(450)
Total deferred	123		477		(6,349)
Total provision for (benefit from) income taxes	$	1,423	$	1,837	$	(5,001)

Schedule of Reconciliation of Taxes at the Federal Statutory Rate to our Provision for (Benefit from) Income Taxes

Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 2, Summary of Significant Accounting Policies, the reconciliation of taxes at the federal statutory rate to our provision for (benefit from) income taxes for the year ended December 31, 2025 was as follows (in millions, except for percentages):




	Amount		Percent
U.S. federal statutory tax rate	$	1,108	21.0	%
Foreign tax effects
China
Statutory tax rate difference between China and United States	60		1.1
Withholding tax	361		6.8
Other	(37)		(0.7)
Other foreign jurisdictions	331		6.3
Tax credits
Research and development tax credits	(352)		(6.7)
Foreign tax credits	(327)		(6.2)
Changes in valuation allowances	389		7.5
Nontaxable or nondeductible items
Nontaxable manufacturing credits	(354)		(6.7)
Stock-based compensation	(172)		(3.3)
Other	83		1.6
Changes in unrecognized tax benefits	194		3.7
Other adjustments	139		2.6
Effective tax rate	$	1,423	27.0	%

The reconciliation of taxes at the federal statutory rate to our provision for (benefit from) income taxes for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows (in millions):


	Year Ended December 31,
	2024		2023
Tax at statutory federal rate	$	1,887	$	2,094
State tax, net of federal benefit	8		(372)
Excess tax benefits related to stock-based compensation	(267)		(288)
Nontaxable manufacturing credit	(291)		(101)
Foreign income rate differential	(545)		(816)
U.S. tax credits	(317)		(593)
GILTI and Subpart F inclusion	882		670
Unrecognized tax benefits	144		183
Change in valuation allowance	163		(5,962)
Other	173		184
Provision for (benefit from) income taxes	$	1,837	$	(5,001)

Schedule of Cash Paid for Income Taxes, Net of Refunds

Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 2, Summary of Significant Accounting Policies, cash paid for income taxes, net of refunds, during the year ended December 31, 2025 was as follows (in millions):




Federal	$	28
State
California	86
Other states	65
Foreign
China	751
Other countries	302
Total cash paid for income taxes, net of refunds	$	1,232

Schedule of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) as of December 31, 2025 and 2024 consisted of the following (in millions):


	December 31, 2025		December 31, 2024
Deferred tax assets:
Net operating loss carry-forwards	$	1,083	$	1,295
Research and development credits	2,030		1,735
Other tax credits and attributes	2,090		1,325
Deferred revenue	999		1,101
Inventory and warranty reserves	2,269		1,769

Operating lease right-of-use liabilities	1,376		1,186
Capitalized research and development costs	2,365		2,448
Deferred GILTI tax assets	709		691
Other	570		412
Total deferred tax assets	13,491		11,962
Valuation allowance	(1,765)		(1,224)
Deferred tax assets, net of valuation allowance	11,726		10,738
Deferred tax liabilities:
Depreciation and amortization	(3,146)		(2,658)

Operating lease right-of-use assets	(1,267)		(1,097)


Other	(514)		(561)
Total deferred tax liabilities	(4,927)		(4,316)
Deferred tax assets (liabilities), net of valuation allowance	$	6,799	$	6,422

Schedule of Unrecognized Tax Benefits Roll Forward

The changes to our gross unrecognized tax benefits were as follows (in millions):


December 31, 2022	$	870
Increases in balances related to prior year tax positions	59
Decreases in balances related to settlement with tax authorities	(6)
Increases in balances related to current year tax positions	255
Decreases in balances related to expiration of the statute of limitations	(4)
December 31, 2023	1,174
Increases in balances related to prior year tax positions	51
Decreases in balances related to prior year tax positions	(27)
Increases in balances related to current year tax positions	227
Decreases in balances related to settlement with tax authorities	(4)
Decreases in balances related to expiration of the statute of limitations	(4)
December 31, 2024	1,417
Increases in balances related to prior year tax positions	64
Decreases in balances related to prior year tax positions	(24)
Increases in balances related to current year tax positions	305
Decreases in balances related to settlement with tax authorities	(3)
Decreases in balances related to expiration of the statute of limitations	(13)
December 31, 2025	$	1,746