v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Before Provision for Income Taxes
The components of income before provision for income taxes are as follows (in millions):
 Year Ended December 31, 
 202520242023
Domestic$79,644 $66,342 $43,499 
Foreign6,288 4,321 3,929 
Income before provision for income taxes$85,932 $70,663 $47,428 
Schedule of Provision for Income Taxes
The provision for income taxes consists of the following (in millions):
 Year Ended December 31, 
 202520242023
Current:   
Federal$2,820 $9,569 $4,934 
State745 775 577 
Foreign3,154 2,696 2,688 
Total current tax expense6,719 13,040 8,199 
Deferred:   
Federal18,379 (4,709)67 
State395 (43)123 
Foreign(19)15 (59)
Total deferred tax (benefits) expense18,755 (4,737)131 
Provision for income taxes$25,474 $8,303 $8,330 
Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Tax Rate A reconciliation of the U.S. federal statutory income tax rate to our effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 is as follows (in millions, except percentages):
Year Ended December 31, 2025
U.S. federal statutory income tax rate$18,046 21.0 %
State and local income taxes, net of federal income tax effect (1)
(202)(0.2)
Foreign tax effects1,464 1.7 
Tax credits
Research and development tax credits(3,912)(4.6)
U.S. foreign tax credits(1,405)(1.6)
Valuation allowances (2)
11,974 13.9 
Changes in unrecognized tax benefits (3)
3,127 3.6 
Other adjustments
Excess tax benefits from share-based compensation(4,307)(5.0)
Other (4)
689 0.8 
Effective tax rate$25,474 29.6 %
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(1)California represents the majority of the tax effect in this category.
(2)Primarily related to the implementation of OBBBA.
(3)Changes in unrecognized tax benefits on an aggregated basis for all jurisdictions.
(4)Includes the tax effects of enactment of new tax laws (excluding implementation of OBBBA reflected in valuation allowances), effect of cross-border tax laws, and nontaxable or nondeductible items.

A reconciliation of the U.S. federal statutory income tax rates to our effective tax rate for the years ended December 31, 2024 and 2023 is as follows (in percentages):
 Year Ended December 31,
 20242023
U.S. federal statutory income tax rate21.0 %21.0 %
State income taxes, net of federal benefit0.7 1.1 
Share-based compensation(3.7)(0.6)
Research and development tax credits(2.9)(1.5)
Foreign-derived intangible income deduction(4.9)(4.3)
Effect of non-U.S. operations0.2 0.9 
Other1.4 1.0 
Effective tax rate11.8 %17.6 %
Schedule of Cash Flow, Supplemental Disclosures
Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 is as follows (in millions):
Year Ended December 31, 2025
Federal$4,118 
State331 
Foreign
Brazil 884 
India 652 
Ireland567 
Other 1,026 
Cash paid for income taxes, net of refunds received$7,578 
Schedule of Deferred Tax Assets and Liabilities
Our deferred tax assets (liabilities) are as follows (in millions):
 December 31, 
 20252024
Deferred tax assets:  
Loss carryforwards$4,432 $289 
Tax credit carryforwards10,506 2,771 
Share-based compensation706 520 
Accrued expenses and other liabilities2,741 2,223 
Lease liabilities5,150 3,940 
Capitalized research and development4,138 16,743 
Unrealized losses in securities and investments143 115 
Other274 442 
Total deferred tax assets28,090 27,043 
Less: valuation allowance(15,895)(3,506)
Deferred tax assets, net of valuation allowance12,195 23,537 
Deferred tax liabilities:  
Depreciation and amortization(15,901)(10,959)
Right-of-use assets(4,453)(3,000)
Unrealized gains in securities and investments(621)— 
Other(387)— 
Total deferred tax liabilities(21,362)(13,959)
Net deferred tax assets (liabilities)$(9,167)$9,578 
Schedule of Gross Unrecognized Tax Benefits Roll Forward
The following table reflects changes in the gross unrecognized tax benefits (in millions):
 Year Ended December 31, 
 202520242023
Gross unrecognized tax benefits ‑ beginning of period$15,131 $11,666 $10,757 
Increases related to prior year tax positions900 685 168 
Decreases related to prior year tax positions(1,131)(6)(263)
Increases related to current year tax positions2,863 2,882 1,204 
Decreases related to settlements of prior year tax positions(1,264)(9)(199)
Decreases related to lapses of statute of limitations(49)(87)(1)
Gross unrecognized tax benefits ‑ end of period$16,450 $15,131 $11,666