Item 1. Condensed Consolidated Financial Statements — Unaudited

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Item 1. Condensed Consolidated Financial Statements — Unaudited

BROADCOM INC.

INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — UNAUDITED


			Page
Condensed Consolidated Balance Sheets — Unaudited			2
Condensed Consolidated Statements of Operations — Unaudited			3
Condensed Consolidated Statements of Comprehensive Income — Unaudited			4
Condensed Consolidated Statements of Cash Flows — Unaudited			5
Condensed Consolidated Statements of Stockholders’ Equity — Unaudited			6
Notes to Unaudited Condensed Consolidated Financial Statements			8

BROADCOM INC.

CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED


	August 2, 2026		November 2, 2025

	(In millions, except par value)
ASSETS
Current assets:
Cash and cash equivalents	$	23,975	$	16,178

Trade accounts receivable, net	13,707		7,145
Inventory	4,523		2,270

Other current assets	9,968		5,980
Total current assets	52,173		31,573
Long-term assets:
Property, plant and equipment, net	3,144		2,530
Goodwill	97,801		97,801
Intangible assets, net	26,325		32,273
Other long-term assets	8,705		6,915
Total assets	$	188,148	$	171,092
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	4,000	$	1,560
Employee compensation and benefits	1,506		2,129
Short-term debt	2,252		3,152

Other current liabilities	13,080		11,673
Total current liabilities	20,838		18,514
Long-term liabilities:
Long-term debt	57,167		61,984

Other long-term liabilities	10,453		9,302
Total liabilities	88,458		89,800
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.001 par value; 100 shares authorized; none issued and outstanding	—		—
Common stock, $0.001 par value; 29,000 shares authorized; 4,774 and 4,741 shares issued and outstanding as of August 2, 2026 and November 2, 2025, respectively	5		5
Additional paid-in capital	77,330		71,308
Retained earnings	22,151		9,761
Accumulated other comprehensive income	204		218
Total stockholders’ equity	99,690		81,292
Total liabilities and equity	$	188,148	$	171,092

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	August 2, 2026		August 3, 2025		August 2, 2026		August 3, 2025

	(In millions, except per share data)
Net revenue:
Products	$	24,279	$	11,173	$	55,301	$	31,625
Subscriptions and services	5,312		4,779		15,788		14,247
Total net revenue	29,591		15,952		71,089		45,872
Cost of revenue:
Cost of products sold	6,983		3,098		15,689		8,515
Cost of subscriptions and services	641		606		1,915		1,758

Amortization of acquisition-related intangible assets	1,499		1,519		4,422		4,486
Restructuring charges	12		26		35		68
Total cost of revenue	9,135		5,249		22,061		14,827
Gross margin	20,456		10,703		49,028		31,045
Research and development	2,895		3,050		8,855		7,996
Selling, general and administrative	996		1,072		3,070		3,104
Amortization of acquisition-related intangible assets	507		507		1,520		1,524
Restructuring and other charges	103		187		277		445

Total operating expenses	4,501		4,816		13,722		13,069
Operating income	15,955		5,887		35,306		17,976
Interest expense	(778)		(807)		(2,355)		(2,449)

Other income, net	98		205		649		333
Income before income taxes	15,275		5,285		33,600		15,860
Provision for income taxes	2,187		1,145		3,853		1,252


Net income	$	13,088	$	4,140	$	29,747	$	14,608




Net income per share:
Basic	$	2.75	$	0.88	$	6.26	$	3.10
Diluted	$	2.68	$	0.85	$	6.09	$	3.02







Weighted-average shares used in per share calculations:
Basic	4,766		4,714		4,752		4,705
Diluted	4,887		4,860		4,884		4,841

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME — UNAUDITED


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	August 2, 2026		August 3, 2025		August 2, 2026		August 3, 2025

	(In millions)
Net income	$	13,088	$	4,140	$	29,747	$	14,608
Other comprehensive income (loss), net of tax:
Change in unrealized gain on derivative instruments	(5)		—		(13)		(3)

Change in actuarial loss and prior service costs associated with defined benefit plans	1		15		(1)		17
Other comprehensive income (loss), net of tax	(4)		15		(14)		14
Comprehensive income	$	13,084	$	4,155	$	29,733	$	14,622

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED


	Three Fiscal Quarters Ended
	August 2, 2026		August 3, 2025

	(In millions)
Cash flows from operating activities:
Net income	$	29,747	$	14,608

Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible and right-of-use assets	6,047		6,116
Depreciation	484		426
Stock-based compensation	6,287		5,373
Deferred taxes and other non-cash taxes	(1,051)		(983)
Loss on debt extinguishment	161		118


Non-cash interest expense	204		273
Other	31		58
Changes in assets and liabilities, net of acquisitions and disposals:
Trade accounts receivable, net	(6,544)		(2,066)
Inventory	(2,253)		(420)
Accounts payable	2,313		(236)
Employee compensation and benefits	(619)		(110)

Other current assets and current liabilities	(2,893)		(1,028)
Other long-term assets and long-term liabilities	1,036		(2,295)
Net cash provided by operating activities	32,950		19,834
Cash flows from investing activities:

Proceeds from sale of business	—		300
Purchases of property, plant and equipment	(1,013)		(386)

Purchases of investments	(756)		(261)
Sales of investments	320		147
Other	13		(13)
Net cash used in investing activities	(1,436)		(213)
Cash flows from financing activities:
Proceeds from long-term borrowings	4,474		10,695
Payments on debt obligations	(10,528)		(14,840)
Proceeds from commercial paper, net	—		488
Payments of dividends	(9,281)		(8,345)
Repurchases of common stock - repurchase program	(8,450)		(2,450)
Shares repurchased for tax withholdings on vesting of equity awards	—		(3,860)
Issuance of common stock	113		118

Other	(45)		(57)
Net cash used in financing activities	(23,717)		(18,251)
Net change in cash and cash equivalents	7,797		1,370
Cash and cash equivalents at beginning of period	16,178		9,348
Cash and cash equivalents at end of period	$	23,975	$	10,718

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY — UNAUDITED

Three Fiscal Quarters Ended August 2, 2026


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
			Shares	Par Value

		(In millions)
Balance as of November 2, 2025			4,741	$	5	$	71,308	$	9,761	$	218	$	81,292
Net income			—	—		—		7,349		—		7,349
Other comprehensive loss			—	—		—		—		(6)		(6)



Dividends to common stockholders			—	—		—		(3,086)		—		(3,086)

Common stock issued			18	—		—		—		—		—
Stock-based compensation			—	—		2,176		—		—		2,176
Repurchases of common stock			(23)	—		(346)		(7,504)		—		(7,850)
Shares repurchased for tax withholdings on vesting of equity awards			—	—		(3)		—		—		(3)
Balance as of February 1, 2026			4,736	5		73,135		6,520		212		79,872
Net income			—	—		—		9,310		—		9,310
Other comprehensive loss			—	—		—		—		(4)		(4)

Dividends to common stockholders			—	—		—		(3,092)		—		(3,092)

Common stock issued			24	—		113		—		—		113
Stock-based compensation			—	—		2,092		—		—		2,092
Repurchases of common stock			(2)	—		(28)		(572)		—		(600)

Balance as of May 3, 2026			4,758	5		75,312		12,166		208		87,691
Net income			—	—		—		13,088		—		13,088
Other comprehensive loss			—	—		—		—		(4)		(4)
Dividends to common stockholders			—	—		—		(3,103)		—		(3,103)

Common stock issued			16	—		—		—		—		—
Stock-based compensation			—	—		2,019		—		—		2,019

Shares repurchased for tax withholdings on vesting of equity awards			—	—		(1)		—		—		(1)

Balance as of August 2, 2026			4,774	$	5	$	77,330	$	22,151	$	204	$	99,690

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY — UNAUDITED

Three Fiscal Quarters Ended August 3, 2025


	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
		Shares	Par Value

		(In millions)
Balance as of November 3, 2024		4,686	$	5	$	67,466	$	—	$	207	$	67,678
Net income		—	—		—		5,503		—		5,503




Dividends to common stockholders		—	—		—		(2,774)		—		(2,774)

Common stock issued		24	—		—		—		—		—
Stock-based compensation		—	—		1,280		—		—		1,280

Shares repurchased for tax withholdings on vesting of equity awards		(8)	—		(1,898)		—		—		(1,898)
Balance as of February 2, 2025		4,702	5		66,848		2,729		207		69,789
Net income		—	—		—		4,965		—		4,965

Other comprehensive loss		—	—		—		—		(1)		(1)

Dividends to common stockholders		—	—		—		(2,785)		—		(2,785)

Common stock issued		26	—		118		—		—		118
Stock-based compensation		—	—		1,773		—		—		1,773
Repurchases of common stock		(16)	—		(227)		(2,223)		—		(2,450)
Shares repurchased for tax withholdings on vesting of equity awards		(9)	—		(1,823)		—		—		(1,823)
Balance as of May 4, 2025		4,703	5		66,689		2,686		206		69,586
Net income		—	—		—		4,140		—		4,140
Other comprehensive income		—	—		—		—		15		15
Dividends to common stockholders		—	—		—		(2,786)		—		(2,786)

Common stock issued		19	—		—		—		—		—
Stock-based compensation		—	—		2,322		—		—		2,322



Balance as of August 3, 2025		4,722	$	5	$	69,011	$	4,040	$	221	$	73,277

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BROADCOM INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Overview, Basis of Presentation and Significant Accounting Policies

Overview

Broadcom Inc. (“Broadcom”), a Delaware corporation, is a global technology leader that designs, develops and supplies a broad range of semiconductor and semiconductor-based solutions and infrastructure software solutions. Our semiconductor and semiconductor-based solutions include a broad portfolio of complex digital and mixed signal devices based on silicon wafers with complementary metal oxide semiconductor transistors, III-V based devices, network interface cards and other modules, switches, and subsystems. Our solutions are used in a wide array of environments, end products and applications, such as enterprise and artificial intelligence (“AI”) data centers, servers and networking and connectivity equipment, as well as storage systems, home connectivity devices, set-top boxes, broadband access, telecommunication equipment, wireless devices and base stations, factory automation, power generation and alternative energy systems, and electronic displays. Our infrastructure software solutions help enterprises simplify their information technology (“IT”) environments. Our customers rely on our infrastructure and security software solutions to modernize, optimize, and secure the most complex private cloud, hybrid cloud and edge environments. This enables scalability, agility, automation, insights, resiliency and security, making it easy for customers to run their mission-critical workloads. We also offer mission-critical fibre channel storage area networking (“FC SAN”) products and related software in the form of modules, switches and subsystems incorporating multiple semiconductor products. Unless stated otherwise or the context otherwise requires, references to “Broadcom,” “we,” “our,” and “us” mean Broadcom and its consolidated subsidiaries.

Basis of Presentation

We operate on a 52- or 53-week fiscal year ending on the Sunday closest to October 31. Our fiscal years ending November 1, 2026 (“fiscal year 2026”) and November 2, 2025 (“fiscal year 2025”) are both 52-week fiscal years.

The accompanying condensed consolidated financial statements include the accounts of Broadcom and its subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. The financial information included herein is unaudited, and reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the results for the periods presented. The November 2, 2025 condensed consolidated balance sheet data were derived from Broadcom’s audited consolidated financial statements included in its Annual Report on Form 10-K for fiscal year 2025 as filed with the Securities and Exchange Commission. All intercompany balances and transactions have been eliminated in consolidation. The operating results for the fiscal quarter ended August 2, 2026 are not necessarily indicative of the results that may be expected for fiscal year 2026, or for any other future period.

Certain prior period amounts reported in our condensed consolidated statements of operations have been reclassified to conform to the current period presentation. See Note 2. “Revenue from Contracts with Customers” for additional information.

Significant Accounting Policies

Use of estimates. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates, and such differences could affect the results of operations reported in future periods.

2. Revenue from Contracts with Customers

We account for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights can be identified, payment terms can be identified, the contract has commercial substance, and it is probable that we will collect substantially all of the consideration to which we are entitled. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised product or service to a customer.

Reclassifications to Condensed Consolidated Statements of Operations

For software arrangements without termination for convenience provisions, we recognize revenue for the license portion of the agreements upfront upon transfer of control to the customer, referred to as upfront license revenue. In the fiscal quarter and three fiscal quarters ended August 2, 2026, we included upfront license revenue of $3,465 million and $7,184 million, respectively, within products revenue, and the related costs, which were immaterial, in cost of products sold, in our condensed consolidated statements of operations. To conform to the current period presentation, we reclassified $1,916 million and $5,691 million of upfront license revenue from subscriptions and services revenue to products revenue for the fiscal quarter and three fiscal quarters ended August 3, 2025, respectively. We also reclassified the related costs for the upfront license revenue, which were immaterial for the periods presented.

In the revenue disaggregation tables by type and by region presented below, we included $2,181 million, $320 million and $964 million of upfront license revenue in products revenue within the Americas; Asia Pacific; and Europe, the Middle East and Africa regions, respectively, for the fiscal quarter ended August 2, 2026. We included $4,698 million, $581 million and $1,905 million of upfront license revenue in products revenue within the Americas; Asia Pacific; and Europe, the Middle East and Africa regions, respectively, for the three fiscal quarters ended August 2, 2026.

To conform to the current period presentation, we reclassified $1,269 million, $204 million and $443 million of upfront license revenue from subscriptions and services revenue to products revenue within the Americas; Asia Pacific; and Europe, the Middle East and Africa regions, respectively, for the fiscal quarter ended August 3, 2025. We reclassified $3,970 million, $446 million and $1,275 million of upfront license revenue from subscriptions and services revenue to products revenue within the Americas; Asia Pacific; and Europe, the Middle East and Africa regions, respectively, for the three fiscal quarters ended August 3, 2025.

Disaggregation

We have considered (1) information that is regularly reviewed by our Chief Executive Officer, who has been identified as the chief operating decision maker (the “CODM”) as defined by the authoritative guidance on segment reporting, in evaluating financial performance and (2) disclosures presented outside of our financial statements in our earnings releases and used in investor presentations to disaggregate revenues. The principal category we use to disaggregate revenues is the nature of our products and subscriptions and services, as presented in our condensed consolidated statements of operations. In addition, revenues by reportable segment are presented in Note 9. “Segment Information.”

The following tables present revenue disaggregated by type and by region for the periods presented:


	Fiscal Quarter Ended August 2, 2026
	Americas		Asia Pacific		Europe, the Middle East and Africa		Total

	(In millions)
Products	$	2,642	$	20,199	$	1,438	$	24,279
Subscriptions and services	2,871		745		1,696		5,312
Total	$	5,513	$	20,944	$	3,134	$	29,591


	Fiscal Quarter Ended August 3, 2025
	Americas		Asia Pacific		Europe, the Middle East and Africa		Total

	(In millions)
Products	$	1,931	$	8,385	$	857	$	11,173
Subscriptions and services	2,793		575		1,411		4,779
Total	$	4,724	$	8,960	$	2,268	$	15,952


	Three Fiscal Quarters Ended August 2, 2026
	Americas		Asia Pacific		Europe, the Middle East and Africa		Total

	(In millions)
Products	$	6,993	$	45,105	$	3,203	$	55,301
Subscriptions and services	8,803		1,989		4,996		15,788
Total	$	15,796	$	47,094	$	8,199	$	71,089


	Three Fiscal Quarters Ended August 3, 2025
	Americas		Asia Pacific		Europe, the Middle East and Africa		Total

	(In millions)
Products	$	5,757	$	23,350	$	2,518	$	31,625
Subscriptions and services	8,305		1,742		4,200		14,247
Total	$	14,062	$	25,092	$	6,718	$	45,872

Although we recognize revenue for the majority of our products when title and control transfer in Penang, Malaysia, we disclose revenue by region based primarily on the geographic shipment location or delivery location specified by our distributors, original equipment manufacturer customers, contract manufacturers, channel partners, or software customers.

Contract Balances

Contract assets and contract liabilities balances were as follows:


		August 2, 2026		November 2, 2025

	(In millions)
Contract Assets		$	11,901	$	8,922

Contract Liabilities		$	13,124	$	13,016

We fulfill our obligations under a contract with a customer by transferring products and services in exchange for consideration from the customer. We recognize a contract asset when revenue recognized on a contract exceeds the amount invoiced. A contract asset becomes a receivable when invoiced upon the right to consideration becoming unconditional.

We recognize a contract liability when billings on a contract exceed the revenue recognized and there is a future obligation to transfer products or services to a customer. Changes in our contract assets and contract liabilities primarily result from the timing difference between our performance and billing the customer.

As of August 2, 2026, approximately 58% of contract liabilities related to contracts subject to termination for convenience provisions. The amount of revenue recognized during the three fiscal quarters ended August 2, 2026 that was included in the contract liabilities balance as of November 2, 2025 was $8,309 million. The amount of revenue recognized during the three fiscal quarters ended August 3, 2025 that was included in the contract liabilities balance as of November 3, 2024 was $8,021 million.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents the transaction price allocated to unsatisfied or partially unsatisfied performance obligations. Remaining performance obligations include unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Certain multi-year customer contracts in our semiconductor solutions segment and infrastructure software segment, including contracts where customers do not have termination rights, contain firmly committed amounts and the remaining performance obligations under these contracts as of August 2, 2026 were approximately $179.2 billion. These commitments include obligations under a long-term contract for custom AI accelerators entered in the fiscal quarter ended May 3, 2026. We expect approximately 25% of this amount to be recognized as revenue over the next 12 months.

Remaining performance obligations do not include contracts for software, subscriptions or services where the customer is not committed. The customer is not considered committed when the customer contract permits termination for convenience. For contracts with termination for convenience rights, our customers generally do not exercise those rights. Additionally, as a practical expedient, we have not included contracts that have an original duration of one year or less, nor have we included contracts with sales-based or usage-based royalties promised in exchange for a license of intellectual property (“IP”). Accordingly, our remaining performance obligations disclosed above are not indicative of revenue for future periods.

3. Supplemental Financial Information

Cash Equivalents

Cash equivalents included $5,050 million and $3,163 million of time deposits and $5,251 million and $2,239 million of money-market funds as of August 2, 2026 and November 2, 2025, respectively. For time deposits, carrying value approximates fair value due to the short-term nature of the instruments. The fair value of money-market funds, which was consistent with their carrying value, was determined using unadjusted prices in active, accessible markets for identical assets, and as such, they were classified as Level 1 assets in the fair value hierarchy.

As of August 2, 2026, cash equivalents also included $2,987 million of U.S. Treasury Bills which were carried at fair value. Due to the short-term nature of the instruments, their amortized cost approximates fair value. As of August 2, 2026, $895 million and $2,092 million of the U.S. Treasury Bills were classified as Level 1 assets and Level 2 assets in the fair value hierarchy, respectively, depending on whether the instruments were traded in active or less active markets.

Accounts Receivable Factoring

We sell certain of our trade accounts receivable on a non-recourse basis to third-party financial institutions pursuant to factoring arrangements. We account for these transactions as sales of receivables and present cash proceeds as cash provided by operating activities in the condensed consolidated statements of cash flows. Total trade accounts receivable sold under the factoring arrangements were $1,600 million and $3,950 million during the fiscal quarter and three fiscal quarters ended August 2, 2026, respectively, and $1,700 million and $5,651 million during the fiscal quarter and three fiscal quarters ended August 3, 2025, respectively.

Inventory


	August 2, 2026		November 2, 2025

	(In millions)
Finished goods	$	1,839	$	682
Work-in-process	1,920		1,280
Raw materials	764		308
Total inventory	$	4,523	$	2,270

Other Current Assets


	August 2, 2026		November 2, 2025

	(In millions)
Current portion of contract assets	$	7,187	$	5,005
Prepaid expenses	1,963		518
Other	818		457
Total other current assets	$	9,968	$	5,980

Other Current Liabilities


	August 2, 2026		November 2, 2025

	(In millions)
Contract liabilities	$	9,501	$	9,469
Tax liabilities	1,971		921
Interest payable	622		620
Other	986		663
Total other current liabilities	$	13,080	$	11,673

Other Long-Term Liabilities


	August 2, 2026		November 2, 2025

	(In millions)
Contract liabilities	$	3,623	$	3,547
Unrecognized tax benefits	1,755		1,628
Deferred tax liabilities	1,532		2,704
Other (a)	3,543		1,423
Total other long-term liabilities	$	10,453	$	9,302

(a) Included $2,186 million global minimum tax payable as of August 2, 2026.

Supplemental Cash Flow Information


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	August 2, 2026		August 3, 2025		August 2, 2026		August 3, 2025

	(In millions)
Cash paid for interest	$	674	$	602	$	1,988	$	1,973
Cash paid for income taxes	$	347	$	822	$	2,228	$	1,834

4. Intangible Assets


	Gross Carrying Amount		Accumulated Amortization		Net Book Value

	(In millions)
As of August 2, 2026:
Purchased technology	$	33,601	$	(18,821)	$	14,780
Customer contracts and related relationships	15,791		(5,440)		10,351
Trade names	1,612		(482)		1,130

Other	188		(124)		64
Total	$	51,192	$	(24,867)	$	26,325



As of November 2, 2025:
Purchased technology	$	32,781	$	(14,401)	$	18,380
Customer contracts and related relationships	15,791		(4,003)		11,788
Trade names	1,612		(399)		1,213

Other	186		(114)		72
Intangible assets subject to amortization	50,370		(18,917)		31,453
In-process research and development	820		—		820
Total	$	51,190	$	(18,917)	$	32,273

Based on the net book value of intangible assets as of August 2, 2026, the expected amortization expense was as follows:


Fiscal Year:	Expected Amortization Expense

	(In millions)
2026 (remainder)	$	2,008
2027	6,980
2028	5,833
2029	4,686
2030	3,479
Thereafter	3,339
Total	$	26,325

The weighted-average remaining amortization periods by intangible asset category were as follows:


Amortizable intangible assets:						August 2, 2026

						(In years)
Purchased technology						5
Customer contracts and related relationships						5
Trade names						11
Other						10

5. Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period.

Potentially dilutive shares outstanding include the dilutive effect of unvested restricted stock units (“RSUs”) and employee stock purchase plan (“ESPP”) rights (collectively referred to as “equity awards”). Potentially dilutive shares whose effect would have been antidilutive are excluded from the computation of diluted net income per share.

The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for purchasing shares under the ESPP and the amount of stock-based compensation expense for future service that we have not yet recognized are collectively assumed to be used to repurchase shares.

The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented:


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	August 2, 2026		August 3, 2025		August 2, 2026		August 3, 2025

	(In millions, except per share data)
Numerator:


Net income	$	13,088	$	4,140	$	29,747	$	14,608




Denominator:
Weighted-average shares outstanding - basic	4,766		4,714		4,752		4,705
Dilutive effect of equity awards	121		146		132		136
Weighted-average shares outstanding - diluted	4,887		4,860		4,884		4,841




Net income per share:


Basic	$	2.75	$	0.88	$	6.26	$	3.10




Diluted	$	2.68	$	0.85	$	6.09	$	3.02

6. Borrowings


	Effective Interest Rate			August 2, 2026		November 2, 2025

				(In millions)
January 2026 Senior Notes
4.300% notes due January 2031	4.41	%		$	750	$	—
4.600% notes due January 2033	4.72	%		1,250		—
4.950% notes due January 2036	5.03	%		1,250		—
5.700% notes due January 2056	5.79	%		1,250		—
				4,500		—
September 2025 Senior Notes
4.200% notes due October 2030	4.34	%		1,000		1,000
4.800% notes due February 2036	4.90	%		2,250		2,250
4.900% notes due February 2038	4.99	%		698		1,750
				3,948		5,000
July 2025 Senior Notes
4.600% notes due July 2030	4.49	%	(a)	1,750		1,750
4.900% notes due July 2032	5.04	%		1,750		1,750
5.200% notes due July 2035	4.77	%	(a)	2,500		2,500
				6,000		6,000
January 2025 Senior Notes
4.800% notes due April 2028	5.03	%		1,100		1,100
5.050% notes due April 2030	5.20	%		800		800
5.200% notes due April 2032	5.34	%		1,100		1,100
				3,000		3,000
October 2024 Senior Notes
4.150% notes due February 2028	4.36	%		—		875
4.350% notes due February 2030	4.51	%		1,500		1,500
4.550% notes due February 2032	4.70	%		875		875
4.800% notes due October 2034	4.38	%	(a)	1,750		1,750
				4,125		5,000
July 2024 Senior Notes
5.050% notes due July 2027	5.27	%		—		1,250
5.050% notes due July 2029	5.23	%		—		2,250
5.150% notes due November 2031	5.30	%		1,500		1,500
				1,500		5,000
April 2022 Senior Notes
4.000% notes due April 2029	4.17	%		750		750
4.150% notes due April 2032	4.30	%		1,200		1,200
4.926% notes due May 2037	5.33	%		654		2,500
				2,604		4,450
September 2021 Senior Notes
3.137% notes due November 2035	4.23	%		3,250		3,250
3.187% notes due November 2036	4.79	%		2,750		2,750
				6,000		6,000


	Effective Interest Rate		August 2, 2026	November 2, 2025

			(In millions)
March 2021 Senior Notes
3.419% notes due April 2033	4.66	%	2,250	2,250
3.469% notes due April 2034	4.63	%	3,250	3,250
			5,500	5,500
January 2021 Senior Notes
1.950% notes due February 2028	2.10	%	750	750
2.450% notes due February 2031	2.56	%	2,750	2,750
2.600% notes due February 2033	2.70	%	1,750	1,750
3.500% notes due February 2041	3.60	%	3,000	3,000
3.750% notes due February 2051	3.84	%	1,750	1,750
			10,000	10,000
2020 Senior Notes
3.150% notes due November 2025	3.29	%	—	900
3.459% notes due September 2026	4.19	%	752	752
4.110% notes due September 2028	5.02	%	—	1,118
5.000% notes due April 2030	5.18	%	606	606
4.150% notes due November 2030	4.27	%	1,856	1,856
4.300% notes due November 2032	4.39	%	2,000	2,000
			5,214	7,232
2019 Senior Notes
4.750% notes due April 2029	4.95	%	1,655	1,655

2017 Senior Notes
3.500% notes due January 2028	3.60	%	777	777

Assumed VMware Senior Notes
1.400% notes due August 2026	5.60	%	1,500	1,500
3.900% notes due August 2027	5.50	%	—	1,250
1.800% notes due August 2028	5.44	%	750	750
4.700% notes due May 2030	5.75	%	750	750
2.200% notes due August 2031	5.74	%	1,500	1,500
			4,500	5,750
Other senior notes
4.500% notes due August 2034	4.55	%	6	6

Total senior notes outstanding			59,329	65,370



4.540% term loan due May 2028	4.59	%	1,000	1,000

4.489% term loan due May 2028	4.55	%	750	750

Total term loans outstanding			1,750	1,750


	Effective Interest Rate	August 2, 2026		November 2, 2025

		(In millions)
Total debt principal outstanding		61,079		67,120
Less: Unamortized discount and issuance costs		(1,660)		(1,984)
Total debt		$	59,419	$	65,136

Short-term debt		$	2,252	$	3,152
Long-term debt		57,167		61,984
Total debt		$	59,419	$	65,136

(a) In addition to contractual interest, discount and issuance costs, the effective interest rate includes the impact of previously deferred gains on derivatives.

Senior Notes

We may redeem or purchase, in whole or in part, any of our senior notes prior to their respective maturities, subject to a specified make-whole premium determined in accordance with the indentures governing the respective notes, plus accrued and unpaid interest. With the exception of the senior notes issued in September 2025 and January 2026, in the event of a change in control, note holders will have the right to require us to repurchase their notes at a price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest. Interest is paid semi-annually.

During the fiscal quarter ended August 2, 2026, we repurchased a total of $5,641 million of our senior notes through cash tender offers and redemptions. During the three fiscal quarters ended August 2, 2026, we issued senior unsecured notes for an aggregate principal amount of $4,500 million and repaid and repurchased a total of $10,541 million of our senior notes.

Fixed-Rate Term Loans

Interest on the term loans is due quarterly. We are permitted to prepay the term loans at any time, subject to a specified make-whole premium determined in accordance with the credit agreements governing the respective term loans, plus accrued and unpaid interest.

2025 Credit Agreement

In January 2025, we entered into a credit agreement (the “2025 Credit Agreement”), which provides for a five-year $7.5 billion unsecured revolving credit facility, of which $500 million is available for the issuance of multi-currency letters of credit. The issuance of letters of credit under the revolving credit facility would reduce the aggregate amount otherwise available under such facility for revolving loans. Subject to the terms of the 2025 Credit Agreement, we are permitted to borrow, repay and reborrow revolving loans at any time prior to the earlier of (a) January 13, 2030 or (b) the date that the commitments are terminated either at our request or, if an event of default occurs, by the lenders. We had no borrowings outstanding under our revolving credit facility at either August 2, 2026 or November 2, 2025.

Commercial Paper

Under our commercial paper program, we may issue unsecured commercial paper notes in an aggregate principal amount of up to $4.0 billion outstanding at any time with maturities of up to 397 days from the date of issue. Commercial paper is sold under customary terms in the commercial paper market and may be issued at a discount from par or, alternatively, may be sold at par and bear interest at rates dictated by market conditions at the time of issuance. The discount associated with the commercial paper is amortized to interest expense over its term. We had no commercial paper outstanding at either August 2, 2026 or November 2, 2025.

Fair Value of Debt

As of August 2, 2026, the estimated aggregate fair value of our debt was $55,990 million, which was determined using quoted prices from less active markets or other observable inputs. All of our debt obligations are categorized as Level 2 instruments in the fair value hierarchy.

Future Principal Payments of Debt

The future scheduled principal payments of our debt as of August 2, 2026 were as follows:


Fiscal Year:	Future Scheduled Principal Payments
	(In millions)
2026 (remainder)	$	2,252
2027	—
2028	5,127
2029	2,405
2030	6,406
Thereafter	44,889
Total	$	61,079

As of August 2, 2026 and November 2, 2025, we were in compliance with all debt covenants.

7. Stockholders’ Equity

Cash Dividends Declared and Paid


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	August 2, 2026		August 3, 2025		August 2, 2026		August 3, 2025

	(In millions, except per share data)
Dividends per share to common stockholders	$	0.65	$	0.59	$	1.95	$	1.77
Dividends to common stockholders	$	3,103	$	2,786	$	9,281	$	8,345

Stock Repurchase Programs

In April 2025, our Board of Directors authorized a stock repurchase program to repurchase up to $10 billion of our common stock through December 31, 2025, which was subsequently extended through December 31, 2026 and increased to $11 billion. In March 2026, our Board of Directors authorized a stock repurchase program to repurchase up to $10 billion of our common stock from time to time through December 31, 2026. During the three fiscal quarters ended August 2, 2026 and August 3, 2025, we repurchased and retired 25 million and 16 million shares for $8,450 million and $2,450 million, respectively. As of August 2, 2026, $10.1 billion of the authorized amount remained available for repurchase.

Stock-Based Compensation Expense


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	August 2, 2026		August 3, 2025		August 2, 2026		August 3, 2025

	(In millions)
Cost of products sold	$	63	$	69	$	193	$	152
Cost of subscriptions and services	161		182		490		455
Research and development	1,344		1,573		4,186		3,564
Selling, general and administrative	451		498		1,418		1,202
Total stock-based compensation expense	$	2,019	$	2,322	$	6,287	$	5,373

During the second quarter of fiscal year 2025, we granted two-year time- and market-based RSU awards (the “Two-Year Equity Awards”), in lieu of our annual employee equity awards historically granted in the second quarter of each fiscal year. Each of the Two-Year Equity Awards vests on the same basis as two annual grants with staggered vesting start dates of March 15, 2025 and March 15, 2026 and successive four-year vesting periods. We recognize stock-based compensation expense related to these awards from the grant date through their respective vesting date, ranging from four to five years.

As of August 2, 2026, the total unrecognized compensation cost related to unvested stock-based awards was $18,221 million, which is expected to be recognized over the remaining weighted-average service period of 2.9 years.

Restricted Stock Unit Awards

A summary of RSU activity is as follows:


	Number of RSUs Outstanding	Weighted-Average Grant Date Fair Value Per Share

	(In millions, except per share data)
Balance as of November 2, 2025	229	$	127.63
Granted	5	$	333.44
Vested	(57)	$	97.81
Forfeited	(12)	$	140.73
Balance as of August 2, 2026	165	$	142.47

The aggregate fair value of RSUs that vested during the three fiscal quarters ended August 2, 2026 was $19,854 million, which represented the market value of our common stock on the date that the RSUs vested.

8. Income Taxes

The provision for income taxes was $2,187 million and $3,853 million for the fiscal quarter and three fiscal quarters ended August 2, 2026, respectively, compared to $1,145 million and $1,252 million for the fiscal quarter and three fiscal quarters ended August 3, 2025, respectively. The increase in the provision for income taxes in both the fiscal quarter and three fiscal quarters ended August 2, 2026, as compared to the prior year fiscal periods, was primarily due to higher income before income taxes.

9. Segment Information

Reportable Segments

We have two reportable segments: semiconductor solutions and infrastructure software. Each segment has separate financial information. The CODM considers actual and expected results of regularly provided net revenue, cost of revenue, operating expenses and operating income by segment during the budgeting and forecasting processes to support strategic decision-making and to evaluate the performance of and allocate resources to each of the segments. Operating income by segment includes items that are directly attributable to each segment and shared expenses such as marketing, general and administrative activities, facilities and IT expenses. Shared expenses are primarily allocated based on revenue and headcount.

Semiconductor solutions. Our semiconductor solutions are used in a wide array of environments, end products and applications such as enterprise and AI data centers, servers and networking and connectivity equipment, as well as storage systems, home connectivity devices, set-top boxes, broadband access, telecommunication equipment, wireless devices and base stations, factory automation, power generation and alternative energy systems, and electronic displays. Our semiconductor solutions segment also includes our IP licensing.

Infrastructure software. Our infrastructure software solutions include revenues from software arrangements, related support, and professional services that help enterprises simplify their IT environments. Our customers rely on our infrastructure and security software solutions to modernize, optimize, and secure the most complex private cloud, hybrid cloud and edge environments. This enables scalability, agility, automation, insights, resiliency and security, making it easy for customers to run their mission-critical workloads. We also offer mission-critical FC SAN products and related software.

Stock-based compensation expense, amortization of acquisition-related intangible assets, restructuring and other charges, and acquisition-related costs are not used in evaluating the results of, or in allocating resources to, our segments and therefore are not allocated to each segment. The CODM does not evaluate each segment using discrete asset information. Depreciation expense directly attributable to each reportable segment is included in the operating results of each segment. However, the CODM does not evaluate depreciation expense by segment and, therefore, it is not separately presented. There was no inter-segment revenue for any of the periods presented. The accounting policies of the segments are the same as those described in the “Summary of Significant Accounting Policies” included in the Annual Report on Form 10-K for fiscal year 2025.


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	August 2, 2026		August 3, 2025		August 2, 2026		August 3, 2025

	(In millions)
Semiconductor solutions:
Net revenue	$	20,839	$	9,166	$	48,363	$	25,786
Cost of revenue	6,892		2,988		15,414		8,235
Research and development	1,006		850		2,946		2,488
Selling, general and administrative	171		111		449		334
Operating income	$	12,770	$	5,217	$	29,554	$	14,729

Infrastructure software:
Net revenue	$	8,752	$	6,786	$	22,726	$	20,086
Cost of revenue	508		465		1,507		1,431
Research and development	545		627		1,723		1,944
Selling, general and administrative	374		456		1,201		1,364
Operating income	$	7,325	$	5,238	$	18,295	$	15,347

Total:
Net revenue	$	29,591	$	15,952	$	71,089	$	45,872
Cost of revenue	7,400		3,453		16,921		9,666
Research and development	1,551		1,477		4,669		4,432
Selling, general and administrative	545		567		1,650		1,698
Unallocated expenses:
Stock-based compensation	2,019		2,322		6,287		5,373
Amortization of acquisition-related intangible assets	2,006		2,026		5,942		6,010
Restructuring and other charges	115		213		312		513
Acquisition-related costs	—		7		2		204
Operating income	$	15,955	$	5,887	$	35,306	$	17,976

10. Commitments and Contingencies

Commitments

The following table summarizes contractual commitments as of August 2, 2026:


Fiscal Year:	Purchase Commitments		Other Contractual Commitments

	(In millions)
2026 (remainder)	$	1,110	$	313
2027	52,674		758
2028	72,952		778
2029	85		904
2030	—		303
Thereafter	—		885
Total	$	126,821	$	3,941

Purchase Commitments. Represent unconditional purchase commitments to purchase goods or services, primarily inventory, that are enforceable and legally binding on us and specify all significant terms, including fixed or minimum quantities to be purchased, price provisions, and the approximate timing of the transaction. Purchase commitments exclude agreements that are cancelable without penalty and unconditional purchase commitments with a remaining term of one year or less.

Other Contractual Commitments. Represent amounts payable pursuant to agreements related to IT and other service agreements.

Due to the inherent uncertainty with respect to the timing of future cash outflows associated with our unrecognized tax benefits as of August 2, 2026, we are unable to reliably estimate the timing of cash settlement with the respective taxing authorities. Therefore, $1,755 million of unrecognized tax benefits and accrued interest and penalties as of August 2, 2026 have been excluded from the table above.

Financial Guarantee

During the fiscal quarter ended August 2, 2026, we arranged for a financial partner to take on certain agreements to purchase AI racks based on custom AI accelerators designed by us and the related lease agreements with a customer that enable access to compute capacity.

In connection with this arrangement, we entered into a backstop agreement with the financial partner for the customer’s lease obligations over the 5-year lease terms (the “Backstop”). The total Backstop amount increases as the AI racks are delivered and deployed and decreases as the customer makes payments on its lease obligations. In the event of a lease default by the customer, our Backstop liability will be equal to any difference between 85% of the outstanding amounts owed on the lease Backstop and the value of the AI racks received upon sale of the assets at that time. Remedies to limit our total liability exposure in a lease default include the assumption of the applicable lease, reselling the AI racks back to the seller at a fixed price under certain conditions or arranging a sale of the applicable AI racks.

Our maximum potential liability under the Backstop upon the deployment of all AI racks, on an undiscounted basis, was approximately $29 billion. The fair value of the Backstop was not material. No amounts have been paid under the Backstop.

Convertible Notes

In connection with lease agreements that enable access to compute capacity, our customer may, under certain circumstances and if needed, issue to us convertible promissory notes up to an aggregate principal amount of $42 billion. The notes are subject to various conditions, including the requirement to use the notes or proceeds from the notes, if any, solely for the customer’s obligations under the lease agreements. As of August 2, 2026, no notes have been issued to us.

Contingencies

From time to time, we are involved in litigation that we believe is of the type common to companies engaged in our lines of business, including but not limited to commercial disputes, employment issues, tax disputes and disputes involving claims by third parties that our activities infringe their patent, copyright, trademark or other IP rights, as well as regulatory investigations or inquiries. Legal proceedings and regulatory investigations or inquiries are often complex, may require the expenditure of significant funds and other resources, and the outcomes of such proceedings are inherently uncertain, with material adverse outcomes possible. IP claims generally involve the demand by a third-party that we cease the manufacture, use or sale of the allegedly infringing products, processes or technologies and/or pay substantial damages or royalties for past, present and future use of the allegedly infringing IP. Claims that our products or processes infringe or misappropriate any third-party IP rights (including claims arising through our contractual indemnification of our customers) often involve highly complex, technical issues, the outcome of which is inherently uncertain. Moreover, from time to time, we pursue litigation to assert our IP rights. Regardless of the merit or resolution of any such litigation, complex IP litigation is generally costly and diverts the efforts and attention of our management and technical personnel.

Contingency Assessment

We are currently engaged in a number of legal actions in the ordinary course of our business; however, we do not believe, based on currently available facts and circumstances, that the final outcome of any pending legal proceedings, ongoing regulatory investigations or tax disputes, taken individually or as a whole, will have a material adverse effect on our condensed consolidated financial statements. However, lawsuits may involve complex questions of fact and law and may require the expenditure of significant funds and other resources to defend. The results of litigation, regulatory investigations or tax disputes are inherently uncertain, and material adverse outcomes are possible. From time to time, we may enter into confidential discussions regarding the potential settlement of such lawsuits. Any settlement of pending litigation could require us to incur substantial costs and other ongoing expenses, such as future royalty payments in the case of an IP dispute.

During the periods presented, no material amounts have been accrued or disclosed in the accompanying condensed consolidated financial statements with respect to loss contingencies associated with any other legal proceedings, regulatory investigations or tax disputes, as potential losses for such matters are not considered probable and ranges of losses are not reasonably estimable. These matters are subject to many uncertainties and the ultimate outcomes are not predictable. There can be no assurances that the actual amounts required to satisfy any liabilities arising from the matters described above will not have a material adverse effect on our condensed consolidated financial statements.

Other Indemnifications

As is customary in our industry and as provided for in local law in the U.S. and other jurisdictions, many of our standard contracts provide remedies to our customers and others with whom we enter into contracts, such as defense, settlement, or payment of judgment for IP claims related to the use of our products. From time to time, we indemnify customers, as well as our suppliers, contractors, lessors, lessees, companies that purchase our businesses or assets and others with whom we enter into contracts, against combinations of loss, expense, or liability arising from various triggering events related to the sale and the use of our products, the use of their goods and services, the use of facilities and state of our owned facilities, the state of the assets and businesses that we sell and other matters covered by such contracts, usually up to a specified maximum amount. In addition, from time to time we also provide protection to these parties against claims related to undiscovered liabilities, additional product liabilities or environmental obligations. In our experience, claims made under such indemnifications are rare and the associated estimated fair value of the liability is not material.

11. Subsequent Events

Cash Dividends Declared

On September 1, 2026, our Board of Directors declared a quarterly cash dividend of $0.65 per share on our common stock, payable on September 30, 2026 to stockholders of record on September 21, 2026.

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