v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Domestic and Foreign Components of Income Before Income Taxes
The domestic and foreign components of Income before income taxes were as follows (in millions):

 Year Ended December 31,
 202320242025
Domestic$1,913 $3,047 $2,719 
Foreign189 284 418 
Income before income taxes$2,102 $3,331 $3,137 
Schedule of Components of Provision (Benefit) Income Taxes
The components of the provision for (benefit from) income taxes were as follows (in millions):

 Year Ended December 31,
 202320242025
Current
Federal$19 $103 $80 
State8 23 25 
Foreign158 124 145 
Total current provision for income taxes185 250 250 
Deferred
Federal(2,410)397 348 
State(461)36 35 
Foreign(4)— (7)
Total deferred provision for (benefit from) income taxes(2,875)433 376 
Total provision for (benefit from) income taxes$(2,690)$683 $626 
Schedule of Reconciliation of Statutory Federal Income Tax Rate to Effective Tax Rate
The following table is a reconciliation of the U.S. federal statutory rate to the Company’s effective rate for the year ended December 31, 2025 (in millions, except percentages) in accordance with ASU 2023-09:

 Year Ended December 31, 2025
 
$
%
Provision for income taxes at U.S. federal statutory rate$659 21.0 %
State and local income taxes, net of federal benefit(1)
33 1.1 
Foreign tax effects
28 0.9 
Effect of cross-border tax laws:
Foreign derived intangible income
(166)(5.3)
Other(49)(1.6)
Tax Credits:
Research and development (“R&D”) credits(121)(3.9)
Valuation allowance221 7.0 
Non-taxable or non-deductible items:
Stock-based compensation
36 1.2 
Other
27 0.9 
Uncertain tax positions
(42)(1.3)
Provision for income taxes effective tax rate$626 20.0 %

(1)The jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include New York, New York City, and Illinois.
The following table is a reconciliation of the U.S. federal statutory rate to the Company’s effective rate for the years ended December 31, 2024 and 2023, as previously disclosed, prior to the adoption of ASU 2023-09:

 Year Ended December 31,
 20232024
Expected income tax expense at U.S. federal statutory rate
21.0 %21.0 %
State taxes, net of federal benefits0.3 1.3 
Foreign tax rate differential2.9 0.8 
Stock-based compensation(16.7)(0.2)
Other statutorily non-deductible expenses0.1 0.1 
Research and development credits(5.5)(2.2)
Uncertain tax positions—prior year positions1.8 — 
Uncertain tax positions—current year positions1.7 1.4 
U.S. tax on foreign income, net of allowable credits and deductions3.9 — 
Foreign-derived intangible income deduction(1.0)(2.0)
Change in valuation allowance
(136.6)0.3 
Other, net
0.1 — 
Effective tax rate(128.0)%20.5 %
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities consisted of the following (in millions):

 December 31,
 20242025
Deferred tax assets:
Loss carryforwards
$462 $253 
Tax credit carryforwards999 806 
Accruals and reserves122 153 
Non-income tax accruals84 81 
Stock-based compensation70 75 
Operating lease liabilities61 51 
Intangible assets140 111 
Capitalized research and development costs882 1,049 
Other, net
62 187 
Gross deferred tax assets2,882 2,766 
Valuation allowance(395)(626)
Total deferred tax assets2,487 2,140 
Deferred tax liabilities:
Property and equipment basis differences(20)(7)
Operating lease assets(25)(25)
Other, net
(7)(9)
Total deferred tax liabilities(52)(41)
Total net deferred tax assets$2,435 $2,099 
Schedule of Reconciliation of Total Gross Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of the Company’s total gross unrecognized tax benefits was as follows (in millions):

 Year Ended December 31,
 202320242025
Balance at beginning of year$650 $780 $869 
Gross increases related to prior year tax positions52 1 18 
Gross decreases related to prior year tax positions(8)(1)(105)
Gross increases related to current year tax positions103 106 74 
Reductions due to settlements with taxing authorities(12)(14)(15)
Reduction due to lapse in statute of limitations(5)(3)(6)
Balance at end of year$780 $869 $835