Broadcom Inc.
For the period ended Aug 2, 2026. Filed Sep 10, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 2, 2026 · Filed Sep 10, 2026
AVGO$293.69+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-05-03; filed 2026-06-09.
0001730168-26-000054
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-08-02; filed 2026-09-10.
0001730168-26-000080
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 71 previous paragraphs and 79 current paragraphs.
31 unchanged; 36 reworded; 11 added; 4 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
•We repurchased $5,641 million of our senior notes.
Current report
Recent Developments
Current report
We see unprecedented demand for our custom AI accelerators or XPUs and AI networking solutions from our customers, including the leading frontier AI labs, due to the demand for AI compute. However, deploying AI infrastructure to meet this demand requires our customers to access significant capital.
Current report
We established the AI XPV platform with certain sophisticated financial partners to enable more than 20 gigawatts in compute capacity using our custom AI accelerators or XPUs and networking solutions customized for the leading frontier AI labs through 2028. The AI XPV platform provides for future deployments of XPU-based compute capacity and networking that enable frontier model training and inference. The AI XPV platform bridges the gap between the current cash flows of the leading frontier AI labs and significant upfront investments required for their businesses. Through the AI XPV platform, the financial partners fund and we provide the technology to the leading frontier AI labs to allow them to deploy AI infrastructure at a scale that meets their increasing demand. Where necessary, we may provide residual value guarantees, which are contingent liabilities we believe would have a low probability of occurring, supported by the strong profitability trajectory of the leading frontier AI labs and the sustaining value of the underlying assets.
Current report
In June 2026, we launched the AI XPV platform with an initial tranche of $35 billion led by a financial partner to facilitate the deployment of more than 1 gigawatt of compute infrastructure for our customer. Pursuant to the AI XPV platform, we arranged for the 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.
Current report
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.
Current report
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. Refer to Note 10. “Commitments and Contingencies” in Part 1, Item 1 of this Form 10-Q.
Current report
Research and development expense decreased $155 million, or 5%, for the fiscal quarter ended August 2, 2026 compared to the prior year fiscal period due to lower compensation, including stock-based compensation, resulting from a decrease in headcount, offset by higher engineering project costs.
Current report
Research and development expense increased $859 million, or 11%, for the three fiscal quarters ended August 2, 2026 compared to the prior year fiscal period primarily due to higher stock-based compensation in the current year fiscal period reflecting the full impact of a two-year equity grant in the second quarter of fiscal year 2025, and higher engineering project costs, offset by an impact from a decrease in headcount.
Current report
Selling, general and administrative expense decreased $76 million, or 7%, and $34 million, or 1%, for the fiscal quarter and three fiscal quarters ended August 2, 2026, respectively, compared to the prior year fiscal periods, primarily due to lower compensation resulting from a decrease in headcount.
Current report
•Accounts payable increased to $4,000 million at August 2, 2026 from $1,560 million at November 2, 2025 primarily due to the timing of inventory purchases and payments.
Removed paragraphs (4)
Previous report
•We repurchased $600 million of common stock.
Previous report
Research and development expense increased $302 million, or 11%, and $1,014 million or 21%, for the fiscal quarter and two fiscal quarters ended May 3, 2026, respectively, compared to the prior year fiscal periods. The increases were primarily due to higher stock-based compensation.
Previous report
Selling, general and administrative expense decreased $28 million, or 3%, and increased $42 million or 2% for the fiscal quarter and two fiscal quarters ended May 3, 2026, respectively, compared to the prior year fiscal periods. These modest changes principally result from two factors. In the current fiscal year periods, higher stock-based compensation was substantially offset by lower acquisition-related costs compared to the prior year fiscal periods.
Previous report
Total stock-based compensation expense was $2,092 million and $1,771 million for the fiscal quarters ended May 3, 2026 and May 4, 2025, respectively, and $4,268 million and $3,051 million for the two fiscal quarters ended May 3, 2026 and
Reworded paragraphs (36)
Previous wording
•We generated $10,493 million of cash from operations.
Current wording
•We generated $14,197 million of cash from operations.
Previous wording
•We paid $3,092 million in cash dividends.
Current wording
•We paid $3,103 million in cash dividends.
Previous wording
There were no significant changes in our critical accounting estimates during the two fiscal quarters ended May 3, 2026 compared to those previously disclosed in “Critical Accounting Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2025 Annual Report on Form 10-K.
Current wording
There were no significant changes in our critical accounting estimates during the three fiscal quarters ended August 2, 2026 compared to those previously disclosed in “Critical Accounting Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2025 Annual Report on Form 10-K.
Previous wording
We are subject to risks and exposures from evolving macroeconomic conditions, including uncertainty and volatility in financial markets, geopolitical events, supply constraints, efforts of governments to stimulate or stabilize the economy and other unfavorable changes in economic conditions, as well as an increase in trade tensions and related tariffs with U.S. trading partners. While difficult to isolate and quantify, these risks and exposures may cause our net revenue to fluctuate significantly and disrupt supply chain operations, and we continuously monitor the broader impacts of these circumstances on our business, our supply chain and our results of operations.
Current wording
We are subject to risks and exposures from evolving macroeconomic conditions, including uncertainty and volatility in financial markets, geopolitical events, supply constraints, efforts of governments to stimulate or stabilize the economy and other unfavorable changes in economic conditions, as well as an increase in trade tensions and related tariffs with U.S. trading partners. While difficult to isolate and quantify, these risks and exposures may cause our net revenue to fluctuate significantly, disrupt supply chain operations and could affect trends in our operating results. We continuously monitor the broader impacts of these circumstances on our business, our supply chain and our results of operations.
Previous wording
Fiscal Quarter and Two Fiscal Quarters Ended May 3, 2026 Compared to Fiscal Quarter and Two Fiscal Quarters Ended May 4, 2025
Current wording
Fiscal Quarter and Three Fiscal Quarters Ended August 2, 2026 Compared to Fiscal Quarter and Three Fiscal Quarters Ended August 3, 2025
Previous wording
We included upfront license revenue of $1,964 million and $3,719 million within products revenue for the fiscal quarter and two fiscal quarters ended May 3, 2026, respectively. We included the related costs, which were immaterial, in cost of products sold. To conform to the current period presentation, we reclassified $1,803 million and $3,775 million of upfront license revenue from subscriptions and services revenue to products revenue for the fiscal quarter and two fiscal quarters ended May 4, 2025, respectively. We also reclassified the related costs for the upfront license revenue, which were immaterial for the periods presented. See Note 2. “Revenue from Contracts with Customers” in Part I, Item 1. of this Form 10-Q for additional information.
Current wording
We included upfront license revenue of $3,465 million and $7,184 million within products revenue for the fiscal quarter and three fiscal quarters ended August 2, 2026, respectively. We included the related costs, which were immaterial, in cost of products sold. 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. See Note 2. “Revenue from Contracts with Customers” in Part I, Item 1. of this Form 10-Q for additional information.
Previous wording
A relatively small number of customers account for a significant portion of our net revenue. Direct sales to one semiconductor solutions customer, which is a distributor, accounted for 42% of our net revenue for each of the fiscal quarter and two fiscal quarters ended May 3, 2026, and 29% of our net revenue for each of the fiscal quarter and two fiscal quarters ended May 4, 2025.
Current wording
A relatively small number of customers account for a significant portion of our net revenue. Direct sales to one semiconductor solutions customer, which is a distributor, accounted for 50% and 46% of our net revenue for the fiscal quarter and three fiscal quarters ended August 2, 2026, respectively, and 32% and 30% of our net revenue for the fiscal quarter and three fiscal quarters ended August 3, 2025, respectively.
Previous wording
We believe aggregate sales to our top five end customers, through all channels, accounted for approximately 45% of our net revenue for each of the fiscal quarter and two fiscal quarters ended May 3, 2026 and 40% of our net revenue for each of the fiscal quarter and two fiscal quarters ended May 4, 2025. We expect to continue to experience significant customer concentration in future periods. The loss of, or significant decrease in demand from, any of our top five end customers could have a material adverse effect on our business, results of operations and financial condition.
Current wording
We believe aggregate sales to our top five end customers, through all channels, accounted for approximately 55% and 50% of our net revenue for the fiscal quarter and three fiscal quarters ended August 2, 2026, respectively, and approximately 40% of our net revenue for each of the fiscal quarter and three fiscal quarters ended August 3, 2025. We expect to continue to experience significant customer concentration in future periods. The loss of, or significant decrease in demand from, any of our top five end customers could have a material adverse effect on our business, results of operations and financial condition.
Previous wording
From time to time, some of our key semiconductor customers place large orders or delay orders, causing our quarterly net revenue to fluctuate significantly. This is particularly true of our products used in AI and wireless applications as fluctuations may be magnified by the timing of customer deployments, as well as product launches. For infrastructure software, the relative volume of customer contracts signed with the right to terminate causes variations in revenue recognized in each period.
Current wording
From time to time, some of our key semiconductor customers place large orders or delay orders, causing our quarterly net revenue to fluctuate significantly. This is particularly true of our products used in AI and wireless applications as fluctuations may be magnified by the timing of customer deployments, as well as product launches. For infrastructure software, the timing and extent of renewals and relative volume of customer contracts without the right to terminate causes variations in revenue recognized in each period.
Previous wording
Net revenue from oursemiconductor solutions segment increased in the fiscal quarter andtwo fiscal quarters ended May 3, 2026 compared to the prior year fiscal periods due to strong demand for our networking solutions, primarily custom AI accelerators and AI networking products.
Current wording
Net revenue from oursemiconductor solutions segment increased in the fiscal quarter andthree fiscal quarters ended August 2, 2026 compared to the prior year fiscal periods due to strong demand for our networking solutions, primarily custom AI accelerators and AI networking products.
Previous wording
Net revenue from our infrastructure software segment increasedin the fiscal quarter andtwo fiscal quarters ended May 3, 2026 compared to the prior year fiscal periods primarily due to strong demand for our VMware Cloud Foundation (“VCF”) product.
Current wording
Net revenue from our infrastructure software segment increasedin the fiscal quarter andthree fiscal quarters ended August 2, 2026 compared to the prior year fiscal periods primarily due to strong demand for our VMware Cloud Foundation (“VCF”) product, including additional license revenue recognized on contracts where customers do not have the right to terminate. As of the fiscal quarter ended August 2, 2026, we no longer have termination for convenience provisions for the majority of new software contracts.
Previous wording
Gross margin was $15,415 million for the fiscal quarter ended May 3, 2026 compared to $10,197 million for the fiscal quarter ended May 4, 2025 and $28,572 million for the two fiscal quarters ended May 3, 2026 compared to $20,342 million for the two fiscal quarters ended May 4, 2025. The increases were primarily due to strong product demand for our AI-related semiconductor solutions.
Current wording
Gross margin was $20,456 million for the fiscal quarter ended August 2, 2026 compared to $10,703 million for the fiscal quarter ended August 3, 2025 and $49,028 million for the three fiscal quarters ended August 2, 2026 compared to $31,045 million for the three fiscal quarters ended August 3, 2025. The increases were primarily due to strong product demand for our AI-related semiconductor solutions.
Previous wording
As a percentage of net revenue, gross margin was 69% for each of the fiscal quarter and two fiscal quarters ended May 3, 2026, and 68% for each of the fiscal quarter and two fiscal quarters ended May 4, 2025. The increases were primarily due to the gross margin benefit from our net revenue growth, partially offset by a higher mix of semiconductor solutions net revenue, which has a lower gross margin than infrastructure software.
Current wording
As a percentage of net revenue, gross margin was 69% for each of the fiscal quarter and three fiscal quarters ended August 2, 2026, and 67% and 68% for the fiscal quarter and three fiscal quarters ended August 3, 2025, respectively. The increases were primarily due to the gross margin benefit from our net revenue growth, partially offset by a higher mix of semiconductor solutions net revenue, which has a lower gross margin than infrastructure software.
Previous wording
May 4, 2025, respectively. The increases were due to the full impact in the current year fiscal periods of the Two-Year Equity Awards granted during the second quarter of fiscal year 2025.
Current wording
Total stock-based compensation expense was $2,019 million and $2,322 million for the fiscal quarters ended August 2, 2026 and August 3, 2025, respectively. The decrease was primarily due to the impact of certain fully vested equity awards and headcount reduction. Total stock-based compensation expense was $6,287 million and $5,373 million for the three fiscal quarters ended August 2, 2026 and August 3, 2025, respectively. The increase was due to the full impact in the current year fiscal period of the Two-Year Equity Awards granted during the second quarter of fiscal year 2025.
Previous wording
The following table sets forth the total unrecognized compensation cost related to unvested stock-based awards outstanding and expected to vest as of May 3, 2026. The remaining weighted-average service period was 3.0 years.
Current wording
The following table sets forth the total unrecognized compensation cost related to unvested stock-based awards outstanding and expected to vest as of August 2, 2026. The remaining weighted-average service period was 2.9 years.
Previous wording
Operating income from our semiconductor solutions segment increased for the fiscal quarter and two fiscal quarters ended May 3, 2026 compared to the prior year fiscal periods due to strong demand for our networking solutions, primarily custom AI accelerators and AI networking products.
Current wording
Operating income from our semiconductor solutions segment increased for the fiscal quarter and three fiscal quarters ended August 2, 2026 compared to the prior year fiscal periods due to strong demand for our networking solutions, primarily custom AI accelerators and AI networking products.
Previous wording
Higher operating income from our infrastructure software segment in the fiscal quarter and two fiscal quarters ended May 3, 2026 compared to the prior year fiscal periods was primarily due to strong demand for our VCF product.
Current wording
Higher operating income from our infrastructure software segment in the fiscal quarter and three fiscal quarters ended August 2, 2026 compared to the prior year fiscal periods was primarily due to strong demand for our VCF product, including additional license revenue recognized on contracts where customers do not have the right to terminate. As of the fiscal quarter ended August 2, 2026, we no longer have termination for convenience provisions for the majority of new software contracts.
Previous wording
Unallocated expenses include stock-based compensation expense, amortization of acquisition-related intangible assets, restructuring and other charges, acquisition-related costs, and other costs, which are not used in evaluating the results of, or in allocating resources to, our segments. Unallocated expenses increased 4% and 12% for the fiscal quarter and two fiscal quarters ended May 3, 2026, respectively, compared to the prior year fiscal periods due to higher stock-based compensation expense.
Current wording
Unallocated expenses include stock-based compensation expense, amortization of acquisition-related intangible assets, restructuring and other charges, acquisition-related costs, and other costs, which are not used in evaluating the results of, or in allocating resources to, our segments. Unallocated expenses decreased 9% and increased 4% for the fiscal quarter and three fiscal quarters ended August 2, 2026, respectively, compared to the prior year fiscal periods due to stock-based compensation expense.
Previous wording
Interest expense. Interest expense was $776 million and $769 million for the fiscal quarters ended May 3, 2026 and May 4, 2025, respectively. The increase was due to a loss on debt extinguishment. Interest expense was $1,577 million and $1,642 million for the two fiscal quarters ended May 3, 2026 and May 4, 2025, respectively. The decrease was primarily due to an overall reduction in outstanding debt balances and debt refinancing activities.
Current wording
Interest expense. Interest expense was $778 million and $807 million for the fiscal quarters ended August 2, 2026 and August 3, 2025, respectively, and $2,355 million and $2,449 million for the three fiscal quarters ended August 2, 2026 and August 3, 2025, respectively. The decreases were primarily due to a reduction in outstanding debt balances and debt refinancing activities.
Previous wording
Other income, net. Other income, net includes interest income, gains and losses on investments, foreign currency remeasurement and other miscellaneous items. Other income, net, was $118 million and $551 million for the fiscal quarter and two fiscal quarters ended May 3, 2026, respectively, and $25 million and $128 million for the fiscal quarter and two fiscal quarters ended May 4, 2025, respectively. Interest income increased compared to the prior year fiscal periods as a result of higher invested balances. In addition, for the two fiscal quarters ended May 3, 2026, other income, net included a $315 million gain from the reversal of excise tax charges on our acquisition of VMware, Inc. (“VMware”), as the final Inflation Reduction Act of 2022 regulations exempted purchases of common stock on acquisitions from excise tax.
Current wording
Other income, net. Other income, net includes interest income, gains and losses on investments, foreign currency remeasurement and other miscellaneous items. Other income, net, was $98 million and $205 million for the fiscal quarters ended August 2, 2026 and August 3, 2025, respectively. For the fiscal quarter ended August 3, 2025, we had a gain on the sale of a business. Other income, net, was $649 million and $333 million for the three fiscal quarters ended August 2, 2026 and August 3, 2025, respectively. For the three fiscal quarters ended August 2, 2026, we had a $315 million gain from the reversal of excise tax charges on our acquisition of VMware, Inc. (“VMware”), as the final Inflation Reduction Act of 2022 regulations exempted purchases of common stock on acquisitions from excise tax.
Previous wording
Provision for income taxes. The provision for income taxes was $820 million and $1,666 million for the fiscal quarter and two fiscal quarters ended May 3, 2026, respectively, compared to $120 million and $107 million for the fiscal quarter and two fiscal quarters ended May 4, 2025, respectively. The increase in the provision for income taxes in both the fiscal quarter and two fiscal quarters ended May 3, 2026, as compared to the prior year fiscal periods, was primarily due to higher income before income taxes.
Current wording
Provision for 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.
Previous wording
Our primary sources of liquidity as of May 3, 2026 consisted of: (i) $19,628 million in cash and cash equivalents, (ii) cash we expect to generate from operations and (iii) available capacity under our $7.5 billion unsecured revolving credit facility. In addition, we may also generate cash from the sale of assets, and debt or equity financings from time to time.
Current wording
Our primary sources of liquidity as of August 2, 2026 consisted of: (i) $23,975 million in cash and cash equivalents, (ii) cash we expect to generate from operations and (iii) available capacity under our $7.5 billion unsecured revolving credit facility. In addition, we may also generate cash from the sale of assets, and debt or equity financings from time to time.
Previous wording
Our short-term and long-term liquidity requirements primarily arise from: (i) working capital requirements, (ii) research and development and capital expenditure needs, (iii) cash dividend payments (if and when declared by our Board of Directors), (iv) interest and principal payments related to our $66,720 million of outstanding indebtedness with $2,252 million principal amounts payable within 12 months, (v) payment of income taxes, (vi) discretionary stock repurchases, and (vii) business acquisitions and investments we may make from time to time. Our ability to fund these requirements will depend, in part, on our future cash flows, which are determined by our future operating performance and, therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control.
Current wording
Our short-term and long-term liquidity requirements primarily arise from: (i) working capital requirements, (ii) research and development and capital expenditure needs, (iii) cash dividend payments (if and when declared by our Board of Directors), (iv) interest and principal payments related to our $61,079 million of outstanding indebtedness with $2,252 million principal amounts payable within 12 months, (v) payment of income taxes, (vi) discretionary stock repurchases, (vii) business acquisitions and investments we may make from time to time, and (viii) potential financing arrangements. Our ability to fund these requirements will depend, in part, on our future cash flows, which are determined by our future operating performance and, therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control.
Previous wording
We believe that our cash and cash equivalents on hand, cash flows from operations and our revolving credit facility will provide sufficient liquidity to operate our business and fund our current obligations for at least the next 12 months. For additional information regarding our cash requirement from indebtedness, contractual commitments and backstops, see Note 6. “Borrowings,” Note 10. “Commitments and Contingencies” and Note 11. “Subsequent Events” in Part I, Item 1 of this Form 10-Q, as well as our disclosure in Part II, Item 5 of this Form 10-Q.
Current wording
We believe that our cash and cash equivalents on hand, cash flows from operations and our revolving credit facility will provide sufficient liquidity to operate our business and fund our current obligations for at least the next 12 months. For additional information regarding our cash requirement from indebtedness, contractual commitments and backstops, see Note 6. “Borrowings” and Note 10. “Commitments and Contingencies” in Part I, Item 1 of this Form 10-Q.
Previous wording
From time to time, we engage in discussions with third parties regarding potential acquisitions of, or investments in, businesses, technologies and product lines. Any such transaction, or evaluation of potential transactions, could require significant use of our cash and cash equivalents, or require us to increase our borrowings to fund such transactions. If we do not have sufficient cash to fund our operations or finance growth opportunities, including acquisitions, expansions of new business strategies and models, or unanticipated capital expenditures, our business and financial condition could suffer. In addition, we may agree to financial obligations, including backstops, or increase our exposure to credit or customer default risks to support our strategic initiatives or other corporate purposes. In such circumstances, we may seek to obtain new debt or equity financing. However, we cannot assure you that such additional financing will be available on terms acceptable to us or at all. Our ability to service our outstanding indebtedness and any other indebtedness we may incur will depend on our ability to generate cash in the future. We may also elect to issue additional debt or equity securities for reasons other than those specified above. From time to time, we manage our indebtedness through financings, redemptions, repayments, exchanges, tender offers and other transactions. Such transactions will depend on prevailing market conditions, our liquidity requirements, the terms of indentures, contractual restrictions and other factors.
Current wording
From time to time, we engage in discussions with third parties regarding potential acquisitions of, or investments in, businesses, technologies and product lines. Any such transaction, or evaluation of potential transactions, could require significant use of our cash and cash equivalents, or we may elect to issue additional debt or equity securities to fund such transactions. If we do not have sufficient cash to fund our operations or finance growth opportunities, including acquisitions, expansions of new business strategies and models, or unanticipated capital expenditures, our business and financial condition could suffer. In addition, we have provided a backstop and may continue to enter into similar financing arrangements, which increases our exposure to counterparty credit risk.
Previous wording
Working capital increased to $23,351 million at May 3, 2026 from $13,059 million at November 2, 2025. The increase was primarily attributable to the following:
Current wording
Working capital increased to $31,335 million at August 2, 2026 from $13,059 million at November 2, 2025. The increase was primarily attributable to the following:
Previous wording
•Cash and cash equivalents increased to $19,628 million at May 3, 2026 from $16,178 million at November 2, 2025, primarily due to $18,753 million in net cash provided by operating activities, offset in part by $8,450 million of stock repurchases and $6,178 million of dividend payments.
Current wording
•Cash and cash equivalents increased to $23,975 million at August 2, 2026 from $16,178 million at November 2, 2025, primarily due to $32,950 million in net cash provided by operating activities, offset in part by $9,281 million of dividend payments, $8,450 million of stock repurchases and $6,054 million of net debt payments.
Previous wording
•Trade accounts receivable, net increased to $10,830 million at May 3, 2026 from $7,145 million at November 2, 2025 primarily due to higher semiconductor revenue, the timing of billings and lower receivables sold through factoring arrangements.
Current wording
•Trade accounts receivable, net increased to $13,707 million at August 2, 2026 from $7,145 million at November 2, 2025 primarily due to higher semiconductor revenue and the timing of collections.
Previous wording
•Other current assets increased to $7,427 million at May 3, 2026 from $5,980 million at November 2, 2025 primarily from higher software contract assets and prepaid taxes.
Current wording
•Other current assets increased to $9,968 million at August 2, 2026 from $5,980 million at November 2, 2025 primarily from higher software contract assets and an increase in prepaid expenses.
Previous wording
•Inventory increased to $4,328 million at May 3, 2026 from $2,270 million at November 2, 2025 primarily to support higher expected shipments for custom AI accelerators.
Current wording
•Inventory increased to $4,523 million at August 2, 2026 from $2,270 million at November 2, 2025 primarily to support higher expected shipments for AI-related semiconductor solutions.
Previous wording
•Other current liabilities increased to $13,139 million at May 3, 2026 from $11,673 million at November 2, 2025 primarily from higher contract liabilities.
Current wording
•Other current liabilities increased to $13,080 million at August 2, 2026 from $11,673 million at November 2, 2025 primarily from higher income tax payable.
Previous wording
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 two fiscal quarters ended May 3, 2026 and May 4, 2025, we repurchased and retired 25 million and 16 million shares for $8,450 million and $2,450 million, respectively. As of May 3, 2026, $10.1 billion of the authorized amount remained available for repurchase.
Current wording
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.
Previous wording
During the two fiscal quarters ended May 4, 2025, we paid $3,802 million in employee withholding taxes due upon the vesting of net settled equity awards and withheld 17 million shares from employees in connection with such net share settlements. In the current year fiscal period, we settled withholding taxes upon the vesting of employee equity awards using proceeds from the sale of a portion of the vested shares.
Current wording
During the three fiscal quarters ended August 3, 2025, we paid $3,860 million in employee withholding taxes due upon the vesting of net settled equity awards and withheld 17 million shares from employees in connection with such net share settlements. In the current year fiscal period, we settled withholding taxes upon the vesting of employee equity awards using proceeds from the sale of a portion of the vested shares.
Previous wording
Cash flows from operating activities consist of net income adjusted for certain non-cash and other items and changes in assets and liabilities. The $6,085 million increase in cash provided by operations during the two fiscal quarters ended May 3, 2026 compared to the prior year fiscal period was primarily due to $6,191 million higher net income and $1,310 million higher non-cash adjustments primarily from higher stock-based compensation, offset in part by $1,416 million from changes in operating assets and liabilities.
Current wording
Cash flows from operating activities consist of net income adjusted for certain non-cash and other items and changes in assets and liabilities. The $13,116 million increase in cash provided by operations during the three fiscal quarters ended August 2, 2026 compared to the prior year fiscal period was primarily due to $15,139 million higher net income and $782 million higher non-cash adjustments primarily from higher stock-based compensation, offset in part by $2,805 million from changes in operating assets and liabilities.
Previous wording
Cash flows from investing activities primarily consist of capital expenditures and proceeds and payments related to investments. The cash flows from investing activities during the two fiscal quarters ended May 3, 2026 were relatively flat compared to the prior year fiscal period as higher capital expenditures in the current year fiscal period was substantially offset by an increase in net proceeds from investments compared to the prior year fiscal period.
Current wording
Cash flows from investing activities primarily consist of capital expenditures, proceeds and payments related to investments and divestitures. The $1,223 million increase in cash used in investing activities during the three fiscal quarters ended August 2, 2026 compared to the prior year fiscal period was due to higher capital expenditures and an increase in net purchases of short-term investments. The prior year fiscal period also included proceeds from a sale of a business.
Previous wording
Cash flows from financing activities primarily consist of proceeds and payments related to our borrowings, dividend payments, authorized stock repurchases, and employee withholding tax payments related to net settled equity awards. The $2,743 million increase in cash used in financing activities during the two fiscal quarters ended May 3, 2026 compared to the prior year fiscal period was primarily due to a $6,000 million increase in stock repurchases, offset in part by $3,802 million of employee withholding tax payments related to net settled equity awards in the prior year fiscal period.
Current wording
Cash flows from financing activities primarily consist of proceeds and payments related to our borrowings, dividend payments, authorized stock repurchases, and employee withholding tax payments related to net settled equity awards. The $5,466 million increase in cash used in financing activities during the three fiscal quarters ended August 2, 2026 compared to the prior year fiscal period was primarily due to a $6,000 million increase in stock repurchases and a $2,397 million increase in debt payments, net of issuances, offset in part by $3,860 million of employee withholding tax payments related to net settled equity awards in the prior year fiscal period.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
At times we manage our indebtedness through financings, redemptions, repayments, exchanges, tender offers and other transactions. Such transactions will depend on prevailing market conditions, our liquidity requirements, the terms of indentures, contractual restrictions and other factors. We cannot assure you that such additional financing will be available on terms acceptable to us or at all. Our ability to service our outstanding indebtedness and any other indebtedness we may incur will depend on our ability to generate cash in the future.