v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Share Based Compensation
The effect of stock-based compensation expense on the consolidated statements of income and comprehensive income by line-item follows:
Year Ended December 31,
(in millions)202520242023
Selling, general, and administrative
$126.9 $126.7 $126.3 
Research and development
91.0 68.8 68.0 
Total stock-based compensation expense$217.9 $195.5 $194.3 
Stock-based compensation expense by award-type follows:
Year Ended December 31,
(in millions)202520242023
Stock options$83.8 $80.7 $91.6 
RSUs107.6 97.7 93.4 
PRSUs19.0 11.5 4.6 
ESPP7.5 5.6 4.7 
Total stock-based compensation expense$217.9 $195.5 $194.3 
As of December 31, 2025, unrecognized stock-based compensation expense by award-type and the weighted-average period over which such expense is expected to be recognized, as applicable, was as follows:
(dollars in millions)Unrecognized ExpenseWeighted-Average Recognition Period
Stock options$95.3 2.4 years
RSUs$213.8 2.3 years
PRSUs$22.7 
Schedule of Weighted-Average assumptions for Stock Option Grants using Black-Scholes Option-Pricing Model
The fair value of each stock option granted was estimated on the date of grant using the Black-Scholes option-pricing valuation model with the following weighted-average assumptions:
Year Ended December 31,
202520242023
Risk-free interest rate4.4 %4.3 %3.9 %
Expected volatility of common stock37.6 %37.2 %40.8 %
Dividend yield0.0 %0.0 %0.0 %
Expected option term5.4 years5.5 years5.5 years
Schedule of Changes in Stock Options Outstanding
The following table presents summary of activity related to stock options.
(in millions, except weighted average data)Number of
Stock Options		Weighted
Average
Exercise Price		Weighted-Average Remaining Contractual TermAggregate Intrinsic Value
Outstanding at December 31, 2024
9.6 $95.48 
Granted1.9 $118.85 
Exercised(1.5)$76.54 
Canceled(0.2)$117.03 
Outstanding at December 31, 2025
9.8 $102.54 6.0 years$384.9 
Exercisable at December 31, 2025
7.0 $95.65 5.1 years$324.8 
Schedule of Changes in Restricted Stock Units Outstanding
The following table presents a summary of activity related to RSUs.
(in millions, except weighted average data)Number of
RSUs		Weighted-Average Grant Date
Fair Value		Weighted-Average Remaining Contractual TermAggregate Intrinsic Value
Unvested at December 31, 2024
2.4 $111.90 
Granted1.3 $119.14 
Released(0.9)$107.48 
Canceled(0.2)$115.53 
Unvested at December 31, 2025
2.6 $116.79 1.2 years$373.4 
The following table presents a summary of activity related to PRSUs.
(in millions, except weighted average data)Number of
PRSUs		Weighted-Average Grant Date
Fair Value		Weighted-Average Remaining Contractual TermAggregate Intrinsic Value
Unvested at December 31, 2024
0.4 $105.11 
Granted0.1 $118.24 
Canceled(0.1)$81.19 
Unvested at December 31, 2025
0.4 $114.70 1.5 years$61.2