Stock-based Compensation Expense and Share Repurchase Programs

3 Months Ended

Mar. 31, 2026

Stock-based compensation expense

During the three months ended March 31, 2026 and 2025, we recognized the following stock-based compensation

expense:


	Three Months Ended March 31,
	2026	2025

(in millions)
Stock-based compensation expense by type of award:
Restricted stock units (including PSUs)	$166.5	$163.4
ESPP share issuances	3.4	5.6
Stock-based compensation expense related to inventories	(3.5)	(2.9)
Total stock-based compensation expense included in “Total costs and expenses”	$166.4	$166.1

Stock-based compensation expense by line item:
Cost of sales	$3.2	$2.6
Research and development expenses	101.7	100.1
Selling, general and administrative expenses	61.5	63.4
Total stock-based compensation expense included in “Total costs and expenses”	166.4	166.1
Income tax effect	(35.3)	(75.2)
Total stock-based compensation expense, net of tax	$131.1	$90.9

Share repurchase program

In February 2023, our Board of Directors authorized a share repurchase program (the “2023 Share Repurchase

Program”), pursuant to which we were authorized to repurchase up to $3.0 billion of our common stock. As of September 30,

2025, we had repurchased the full amount authorized under the 2023 Share Repurchase Program.

In May 2025, our Board of Directors authorized an additional share repurchase program (the “2025 Share Repurchase

Program”), pursuant to which we are authorized to repurchase up to $4.0 billion of our common stock. The 2025 Share

Repurchase Program does not have an expiration date and can be discontinued at any time.

During the three months ended March 31, 2026 and 2025, we repurchased 0.7 million and 0.9 million shares of our

common stock under our share repurchase programs, respectively, for aggregate repurchases of $344.5 million and $416.9

million, respectively. As of March 31, 2026, we had $3.0 billion remaining available under the 2025 Share Repurchase

Program.