Non-marketable Equity Securities
Our non-marketable equity securities are valued under the measurement alternative applying valuation methods based on observable transactions for similar investments of the same issuer and unobservable inputs such as volatility, expected
time to liquidity, risk free rate and security-specific rights and obligations. Gains and losses on these investments, realized and unrealized, are recognized in Other income, net on our Consolidated Statements of Income.
Adjustments to the carrying value of our non-marketable equity securities during fiscal years 2026 and 2025 were as follows:
Year Ended
Jan 25, 2026Jan 26, 2025
(In millions)
Balance at beginning of period$3,387 $1,321 
Adjustments related to non-marketable equity securities:
Net additions17,444 1,309 
Unrealized gains2,369 816 
Reclassification (1)
(848)— 
Impairments and unrealized losses(101)(59)
Balance at end of period$22,251 $3,387 
(1) Represents reclassifications from non-marketable equity securities to marketable securities following public market trading.
Non-marketable equity securities had cumulative gross unrealized gains of $2.7 billion and $1.1 billion, and cumulative gross unrealized losses and impairments of $176 million and $105 million on securities held as of January 25, 2026 and January 26, 2025, respectively.

Historical Timeline

Fiscal YearFiled
2026Feb 25, 2026Showing above
2025Feb 26, 2025
2024Feb 21, 2024
2023Feb 24, 2023
2022Mar 18, 2022
2021Feb 26, 2021
2020Feb 20, 2020
2019Feb 21, 2019
2018Feb 28, 2018
2017Mar 1, 2017
2016Mar 17, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.