Financial Instruments

3 Months Ended

Dec. 27, 2025

Cash, Cash Equivalents and Marketable Securities

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 27, 2025 and September 27, 2025 (in millions):


	December 27, 2025
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	30,826	$	—	$	—	$	30,826	$	30,826	$	—	$	—
Level 1:
Money market funds	5,959		—		—		5,959		5,959		—		—
Mutual funds	792		195		(2)		985		—		985		—
Subtotal	6,751		195		(2)		6,944		5,959		985		—
Level 2 (1):
U.S. Treasury securities	18,715		64		(211)		18,568		2,302		5,341		10,925
U.S. agency securities	8,692		1		(114)		8,579		4,192		1,998		2,389
Non-U.S. government securities	6,675		117		(399)		6,393		—		771		5,622
Certificates of deposit and time deposits	1,737		—		—		1,737		1,723		—		14
Commercial paper	991		—		—		991		297		694		—
Corporate debt securities	46,682		280		(695)		46,267		18		11,568		34,681
Municipal securities	154		—		(1)		153		—		97		56
Mortgage- and asset-backed securities	25,296		158		(1,117)		24,337		—		136		24,201
Subtotal	108,942		620		(2,537)		107,025		8,532		20,605		77,888
Total	$	146,519	$	815	$	(2,539)	$	144,795	$	45,317	$	21,590	$	77,888


	September 27, 2025
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	28,267	$	—	$	—	$	28,267	$	28,267	$	—	$	—
Level 1:
Money market funds	5,272		—		—		5,272		5,272		—		—
Mutual funds	679		177		(2)		854		—		854		—
Subtotal	5,951		177		(2)		6,126		5,272		854		—
Level 2 (1):
U.S. Treasury securities	16,074		56		(282)		15,848		1,190		3,712		10,946
U.S. agency securities	5,269		—		(149)		5,120		251		2,456		2,413
Non-U.S. government securities	6,586		111		(424)		6,273		—		855		5,418
Certificates of deposit and time deposits	917		—		—		917		904		—		13
Commercial paper	100		—		—		100		50		50		—
Corporate debt securities	47,210		266		(916)		46,560		—		10,623		35,937
Municipal securities	207		—		(2)		205		—		119		86
Mortgage- and asset-backed securities	24,130		126		(1,252)		23,004		—		94		22,910
Subtotal	100,493		559		(3,025)		98,027		2,395		17,909		77,723
Total	$	134,711	$	736	$	(3,027)	$	132,420	$	35,934	$	18,763	$	77,723

(1)The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.

As of December 27, 2025, 78% of the Company’s non-current marketable debt securities other than mortgage- and asset-backed securities had maturities between 1 and 5 years, 17% between 5 and 10 years, and 5% greater than 10 years. As of December 27, 2025, 12% of the Company’s non-current mortgage- and asset-backed securities had maturities between 1 and 5 years, 18% between 5 and 10 years, and 70% greater than 10 years.

Derivative Instruments and Hedging

The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates.

Foreign Exchange Rate Risk

To protect gross margins from fluctuations in foreign exchange rates, the Company may use forwards, options or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months.

To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign exchange rates, the Company may use forwards, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of December 27, 2025, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 17 years.

The Company may also use derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies.

Interest Rate Risk

To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may use interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges.

The notional amounts of the Company’s outstanding derivative instruments as of December 27, 2025 and September 27, 2025, were as follows (in millions):


	December 27, 2025		September 27, 2025
Derivative instruments designated as accounting hedges:
Foreign exchange contracts	$	46,619	$	62,647
Interest rate contracts	$	12,875	$	12,875

Derivative instruments not designated as accounting hedges:
Foreign exchange contracts	$	120,980	$	109,079

As of both December 27, 2025 and September 27, 2025, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $12.6 billion.

Accounts Receivable

Trade Receivables

As of December 27, 2025, the Company had two customers that individually represented 10% or more of total trade receivables, which accounted for 15% and 10%. As of September 27, 2025, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 12%. The Company’s third-party cellular network carriers accounted for 35% and 34% of total trade receivables as of December 27, 2025 and September 27, 2025, respectively. The Company requires third-party credit support or collateral from certain customers to limit credit risk.

Vendor Non-Trade Receivables

The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. The Company does not reflect the sale of these components in products net sales. Rather, the Company recognizes any gain on these sales as a reduction of products cost of sales when the related final products are sold by the Company. As of December 27, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 47% and 26%. As of September 27, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 46% and 23%.

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