Cash equivalents and marketable equity securities are measured at fair value and classified within Level 1 and Level 2 in the fair value hierarchy, because we use quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets.

Debt securities are measured at fair value and classified within Level 2 in the fair value hierarchy, because we use quoted market prices to the extent available or alternative pricing sources and models utilizing market observable inputs to determine fair value. The following tables summarize our cash, cash equivalents, and marketable securities measured at fair value on a recurring basis (in millions):


	As of December 31, 2025
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
Cash					$	15,305
Cash equivalents:
Money market funds	$	11,349	$	0	$	11,349
Time deposits	0		3,353		3,353
Government bonds	0		602		602
Corporate debt securities	0		99		99
Total cash and cash equivalents	11,349		4,054		30,708
Marketable securities:
Marketable equity securities	4,402		1,911		6,313
Time deposits	0		0		0
Government bonds	0		50,549		50,549
Corporate debt securities	0		21,565		21,565
Mortgage-backed and asset-backed securities	0		17,708		17,708
Total marketable securities	4,402		91,733		96,135
Total	$	15,751	$	95,787	$	126,843


	As of March 31, 2026
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
Cash					$	15,408
Cash equivalents:
Money market funds	$	16,686	$	0	$	16,686
Time deposits	0		2,966		2,966
Government bonds	0		2,946		2,946
Corporate debt securities	0		57		57
Total cash and cash equivalents	16,686		5,969		38,063
Marketable securities:
Marketable equity securities	5,541		503		6,044
Time deposits	0		0		0
Government bonds	0		43,204		43,204
Corporate debt securities	0		21,763		21,763
Mortgage-backed and asset-backed securities	0		17,766		17,766
Total marketable securities	5,541		83,236		88,777
Total	$	22,227	$	89,205	$	126,840

Non-marketable equity securities accounted for under the measurement alternative are investments in privately held companies without readily determinable market values. The carrying value of these non-marketable equity securities is adjusted upward or downward to fair value upon observable transactions for identical or similar investments of the same issuer or impairment. Non-marketable equity securities that have been remeasured during the period based on observable transactions are classified within Level 2 or Level 3 in the fair value hierarchy, and remeasurements due to impairment are classified within Level 3. Our valuation methods include option pricing models, market comparable approach, and common stock equivalent method, which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, expected time to exit, risk free rate, and the rights, and obligations of the securities we hold. These inputs vary significantly based on investment type.

As of March 31, 2026, the carrying value of our non-marketable equity securities accounted for under the measurement alternative was $101.3 billion, of which $73.6 billion was remeasured at fair value during the three months ended March 31, 2026 and was primarily classified within Level 2 of the fair value hierarchy at the time of measurement.

The following tables present fair values and gross unrealized gains and losses recorded to accumulated other comprehensive income (AOCI), less any expected credit losses, aggregated by investment category (in millions):


	As of December 31, 2025
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Time deposits	$	3,353	$	0	$	0	$	3,353
Government bonds	49,087		443		(26)		49,504
Corporate debt securities	18,346		242		(32)		18,556
Mortgage-backed and asset-backed securities	14,337		174		(128)		14,383
Total investments with fair value change reflected in other comprehensive income	$	85,123	$	859	$	(186)	$	85,796


	As of March 31, 2026
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Time deposits	$	2,966	$	0	$	0	$	2,966
Government bonds	44,465		272		(101)		44,636
Corporate debt securities	18,737		124		(63)		18,798
Mortgage-backed and asset-backed securities	14,627		109		(160)		14,576
Total investments with fair value change reflected in other comprehensive income	$	80,795	$	505	$	(324)	$	80,976

The following tables present fair values and gross unrealized losses recorded to AOCI, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in millions):


	As of December 31, 2025
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Government bonds	$	4,230	$	(9)	$	1,174	$	(17)	$	5,404	$	(26)
Corporate debt securities	915		0		2,429		(24)		3,344		(24)
Mortgage-backed and asset-backed securities	1,377		(4)		3,035		(124)		4,412		(128)
Total	$	6,522	$	(13)	$	6,638	$	(165)	$	13,160	$	(178)


	As of March 31, 2026
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Government bonds	$	14,349	$	(85)	$	890	$	(16)	$	15,239	$	(101)
Corporate debt securities	5,506		(17)		1,826		(19)		7,332		(36)
Mortgage-backed and asset-backed securities	5,228		(40)		1,972		(120)		7,200		(160)
Total	$	25,083	$	(142)	$	4,688	$	(155)	$	29,771	$	(297)

We determine realized gains or losses on the sale or extinguishment of debt securities on a specific identification method. For certain marketable debt securities, we have elected the fair value option for which changes in fair value are recorded in other income (expense), net (OI&E). The fair value option was elected for these securities to align with the unrealized gains and losses from related derivative contracts.


	Three Months Ended
	March 31,
	2025		2026
Unrealized gain (loss) on fair value option debt securities	$	97	$	(142)
Gross realized gain on debt securities	266		83
Gross realized loss on debt securities	(175)		(33)
(Increase) decrease in allowance for credit losses	14		(19)
Total gain (loss) on debt securities recognized in other income (expense), net	$	202	$	(111)

Our non-marketable securities primarily consist of non-marketable equity securities accounted for under the measurement alternative. The carrying value is measured at the total initial cost plus the cumulative net upward and downward adjustments (including impairments). We account for non-marketable equity securities through which we exercise significant influence, but do not have control over the investee under the equity method. Certain of our non-marketable securities include our investments in variable interest entities (VIEs) where we are not the primary beneficiary. See Note 5 for further details on VIEs.

Realized net gain (loss) on equity securities sold during the period reflects the difference between the sale proceeds and the carrying value of the equity securities at the beginning of the period or the purchase date, if later.


	As of December 31, 2025		As of March 31, 2026
Non-marketable securities:
Total initial cost of non-marketable equity securities accounted for under the measurement alternative	$	28,429	$	29,489
Cumulative upward adjustments	44,485		80,792
Cumulative downward adjustments (including impairments)	(8,820)		(8,935)
Carrying value of non-marketable equity securities accounted for under the measurement alternative	64,094		101,346
Equity method investments and other	4,593		5,600
Total non-marketable securities	$	68,687	$	106,946


	Three Months Ended
	March 31,
	2025		2026
Gross unrealized gain on non-marketable equity securities accounted for under the measurement alternative	$	9,715	$	36,660
Gross unrealized loss (including impairments) on non-marketable equity securities accounted for under the measurement alternative	(399)		(346)
Unrealized net gain (loss) on non-marketable equity securities accounted for under the measurement alternative	9,316		36,314
Unrealized net gain (loss) on marketable and other equity securities	227		105
Realized net gain (loss) on marketable and non-marketable equity securities sold during the period	215		496
Total gain (loss) on equity securities in other income (expense), net (1)	$	9,758	$	36,915

Cumulative net gains (losses), calculated as the difference between the sales price and purchase price, represent the total net gains (losses) recognized after the initial purchase date. This represents the total economic impact of the investment, regardless of when the gains or losses were previously recognized. Cumulative net gains on equity securities sold were $161 million and $502 million during the three months ended March 31, 2025 and 2026, respectively.

We utilize derivative instruments to manage risks relating to our ongoing business operations, including foreign currencies, interest rates, commodity prices, credit risk, and market prices of certain marketable equity securities. These derivatives are primarily classified within Level 2 of the fair value hierarchy.

We also enter into derivatives as a result of agreements with certain third parties to backstop certain payment obligations related to data centers, which we account for as credit derivatives. Additionally, a certain strategic investment includes forward funding commitments that are accounted for as equity derivatives, as they include rights to participate in future capital funding, the exercise of which is contingent upon the achievement of specified operational and financial milestones. These credit and equity derivatives are classified within Level 3 of the fair value hierarchy. Our valuation methods include probability-weighted expected return models, which may include a combination of observable and unobservable inputs, including counterparty risk, credit default rates, risk-free rate, and our contractual rights and obligations under the agreements.

We recognize derivative instruments in the Consolidated Balance Sheets at fair value. We present our foreign currency collars (an option strategy comprised of a combination of purchased and written options) at net fair values and present all other derivatives at gross fair values. The accounting treatment for derivatives is based on the intended use and hedge designation.

We designate foreign currency forwards and options (including collars) as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the US dollar. These contracts have maturities of 24 months or less.

Cash flow hedge amounts included in the assessment of hedge effectiveness are deferred in AOCI and reclassified to revenue when the hedged item is recognized in earnings. Hedge components excluded from our assessment of hedge effectiveness are amortized on a straight-line basis over the life of the hedging instrument in revenues. The difference between fair value changes of the excluded component and the amount amortized to revenues is recorded in AOCI.

As of March 31, 2026, the net accumulated gain on our foreign currency cash flow hedges before tax effect was $415 million, which is expected to be reclassified from AOCI into revenues within the next 12 months.

Additionally, we may designate interest rate derivatives as cash flow hedges to manage our exposure to certain interest rate risks. Changes in the fair value of these derivatives are deferred in AOCI and reclassified to OI&E when the hedged item is recognized in earnings.

We designate foreign currency forwards, options (including collars), cross-currency swaps, and foreign currency-denominated debt as net investment hedges to hedge the foreign currency risks related to our investments in foreign subsidiaries. Net investment hedge amounts included in the assessment of hedge effectiveness are recognized in AOCI.

Changes in the fair value of hedge components of forward and option contracts that are excluded from the assessment of hedge effectiveness are recognized in OI&E. Hedge components of cross-currency swaps that are excluded from the assessment of hedge effectiveness are amortized over the life of the hedging instrument and recognized in OI&E. The difference between fair value changes of the excluded component and the amount amortized to OI&E is recorded in AOCI.

We primarily enter into derivatives not designated as hedging instruments to manage risks related to our ongoing business operations. The primary risk managed is foreign exchange risk related to the remeasurement of monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. Gains and losses on these foreign exchange derivatives are recorded within the "foreign currency exchange gain (loss), net" component of OI&E. We also enter into derivatives to manage other risks, including interest rates, commodity prices, credit risk, and market prices of certain marketable equity securities, the gains and losses from which are recorded within the "other" component of OI&E.

We have entered into agreements with certain third parties to backstop certain payment obligations relating to data centers, which we account for as credit derivatives. The notional amounts for these credit derivatives represent the maximum potential exposure regarding future payments in the event of specified default scenarios by underlying parties. These agreements carry remaining terms of up to 15 years and the total potential exposure reduces over time as the underlying parties fulfill their payment obligations. Upon a default under these backstops, we retain the right to assume the underlying leases for internal use or to sublease to third parties. Under specific conditions or following a predetermined period, we may elect to extinguish the backstop obligation by making a termination payment. If we elect such payment, our obligations may be partially offset by equity or cash receipts from counterparties. These potential inflows are not reflected in the notional amounts for credit derivatives.

The notional amounts for equity derivatives represent an agreement for future capital funding in the form of notes receivable or equity to be funded in multiple tranches contingent upon the achievement of specified operational and financial milestones through 2030. The fair value of these equity derivatives was not material as of March 31, 2026.


	As of December 31, 2025		As of March 31, 2026
Derivatives designated as hedging instruments:
Foreign exchange derivatives
Cash flow hedges	$	23,852	$	23,448
Net investment hedges	$	14,203	$	14,020
Derivatives not designated as hedging instruments:
Foreign exchange derivatives	$	56,085	$	51,976
Equity derivatives	$	0	$	30,000
Credit derivatives	$	16,940	$	28,436
Other derivatives	$	15,900	$	15,862

In April, 2026, we entered into additional agreements with certain third parties to backstop certain obligations relating to third-party data centers that we expect to be accounted for as credit derivatives with notional amounts totaling approximately $15.3 billion.


	As of December 31, 2025				As of March 31, 2026
	Assets(1)		Liabilities(2)		Assets(1)		Liabilities(2)
Derivatives designated as hedging instruments:
Foreign exchange derivatives	$	316	$	197	$	991	$	39

Derivatives not designated as hedging instruments:
Foreign exchange derivatives	92		15		244		472
Credit derivatives	0		69		0		339
Other derivatives	324		98		375		40
Total derivatives not designated as hedging instruments	416		182		619		851
Total	$	732	$	379	$	1,610	$	890

The gains (losses) on derivatives and non-derivative financial instruments in cash flow hedging and net investment hedging relationships recognized in other comprehensive income are summarized below (in millions):


	Three Months Ended
	March 31,
	2025		2026
Cash flow hedging relationship:
Foreign exchange and other derivatives
Amount included in the assessment of effectiveness	$	(339)	$	259
Amount excluded from the assessment of effectiveness	(61)		83

Net investment hedging relationship:
Amount included in the assessment of effectiveness
Foreign exchange derivatives	(206)		320
Foreign currency-denominated debt	0		440
Amounts excluded from the assessment of effectiveness
Foreign exchange derivatives	0		1
Total	$	(606)	$	1,103


	Three Months Ended March 31,
	2025				2026
	Revenues		Other income (expense), net		Revenues		Other income (expense), net
Total amounts included in the Consolidated Statements of Income	$	90,234	$	11,183	$	109,896	$	37,716

Effect of cash flow hedges:
Foreign exchange derivatives
Amount included in the assessment of effectiveness	$	242	$	0	$	(211)	$	0
Amount excluded from the assessment of effectiveness	18		0		31		0
Effect of fair value hedges:
Foreign exchange derivatives
Hedged items	0		(9)		0		0
Amount included in the assessment of effectiveness	0		9		0		0
Amount excluded from the assessment of effectiveness	0		1		0		0
Effect of net investment hedges:
Foreign exchange derivatives
Amount excluded from the assessment of effectiveness	0		31		0		62
Effect of non-designated hedges:
Foreign exchange derivatives	0		65		0		(179)
Credit derivatives	0		0		0		(148)
Other derivatives	0		(71)		0		14
Total gains (losses)	$	260	$	26	$	(180)	$	(251)

We enter into master netting arrangements and collateral security arrangements to reduce credit risk. Cash collateral received related to derivative instruments under our collateral security arrangements are included in other current assets with a corresponding liability. Cash and non-cash collateral pledged related to derivative instruments under our collateral security arrangements are primarily included in other current assets.

The gross amounts of derivative instruments subject to master netting arrangements with various counterparties, and cash and non-cash collateral received and pledged under such agreements were as follows (in millions):


	As of December 31, 2025
							Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset
	Gross Amounts Recognized		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments(1)		Cash and Non-Cash Collateral Received or Pledged		Net Amounts
Derivatives assets	$	842	$	(110)	$	732	$	(140)	$	(231)	$	361
Derivatives liabilities	$	489	$	(110)	$	379	$	(140)	$	(15)	$	224


	As of March 31, 2026
							Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset
	Gross Amounts Recognized		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments(1)		Cash and Non-Cash Collateral Received or Pledged		Net Amounts
Derivatives assets(1)	$	1,725	$	(115)	$	1,610	$	(470)	$	(696)	$	444
Derivatives liabilities	$	1,005	$	(115)	$	890	$	(470)	$	(18)	$	402