v3.26.1
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
June 30, 2026December 31, 2025
Dollars in millionsLevel 1Level 2Level 3Level 1Level 2Level 3
Cash and cash equivalents
Money market and other securities$— $6,175 $— $— $6,891 $— 
Marketable debt securities
Certificates of deposit— 2,193 — — 350 — 
Corporate debt securities— 414 — — 439 — 
U.S. Treasury securities— 135 — — 71 — 
Derivative assets— 394 — — 303 — 
Equity investments
325 — 109 552 — 85 
Derivative liabilities— 123 — — 123 — 
Contingent consideration liability
Contingent value rights(a)
— — 607 3 — 607 
(a)    Includes the fair value of contingent value rights associated with the Mirati acquisition. The fair value of contingent value rights was estimated using a probability-weighted expected return method.
Schedule of Equity Investments
The following summarizes the carrying amount of equity investments:
Dollars in millionsJune 30,
2026		December 31,
2025
Equity investments with RDFV
$325 $552 
Equity investments without RDFV
810 806 
Limited partnerships and other investments855 738 
Total equity investments$1,989 $2,096 
Debt Securities, Trading, and Equity Securities, FV-NI
The following summarizes the activity related to equity investments. Changes in fair value of equity investments are included in Other (income)/expense, net.
Three Months Ended June 30,Six Months Ended June 30,
Dollars in millions2026202520262025
Equity investments with RDFV
Net (gains)/losses recognized$(50)$(4)$(85)$1 
Less: net (gains)/losses recognized on investments sold(1)2 (7)5 
Net unrealized (gains)/losses recognized on investments still held(49)(6)(78)(4)
Equity investments without RDFV
Upward adjustments
(6)(11)(177)(11)
Net realized (gains)/losses recognized on investments sold— — 35 19 
Impairments and downward adjustments
2 — 64 45 
Limited partnerships and other investments
Equity in net (income)/loss of affiliates and other adjustments
(60)37 (85)46 
Total equity investment (gains)/losses
$(114)$22 $(248)$100 
Schedule of Derivatives and Fair Value
The following table summarizes the fair value and the notional values of outstanding derivatives:
 June 30, 2026December 31, 2025
Asset(a)
Liability(b)
Asset(a)
Liability(b)
Dollars in millionsNotionalFair ValueNotionalFair ValueNotionalFair ValueNotionalFair Value
Designated as cash flow hedges
Foreign currency exchange contracts
$5,459 $206 $507 $(45)$5,074 $145 $1,542 $(64)
Cross-currency swap contracts584 61 — — 584 65 — — 
Designated as net investment hedges
Cross-currency swap contracts362 47 199 (21)362 39 345 (48)
Designated as fair value hedges
Interest rate swap contracts1,700 10 3,155 (22)4,000 46 555 (5)
Not designated as hedges
Foreign currency exchange contracts3,015 60 1,700 (34)1,887 8 667 (5)
Total return swap contracts(c)
486 11 — — — — 447 (1)
(a)    Included in Other current assets and Other non-current assets.
(b)    Included in Other current liabilities and Other non-current liabilities.
(c)    Total return swap contracts hedge changes in fair value of certain deferred compensation liabilities.
Derivative Instruments, Gain (Loss)
The following table summarizes the financial statement classification and amount of gains and losses recognized on hedges:
Three Months Ended June 30, 2026Six Months Ended June 30, 2026
Dollars in millions
Gains/(losses) recognized in
Alliance and other revenues
(Gains)/losses recognized in
Other (income)/expense, net
Gains/(losses) recognized in
Alliance and other revenues
(Gains)/losses recognized in
Other (income)/expense, net
Foreign currency exchange contracts
$(9)$(16)$(23)$(38)
Cross-currency swap contracts— (1)— 11 
Interest rate swap contracts— (4)— (9)
Forward interest rate contracts
— (1)— (3)
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Dollars in millions(Gains)/losses recognized in
Cost of products sold		(Gains)/losses recognized in
Other (income)/expense, net		(Gains)/losses recognized in
Cost of products sold		(Gains)/losses recognized in
Other (income)/expense, net
Foreign currency exchange contracts$13 $8 $(13)$24 
Cross-currency swap contracts— (76)— (126)
Interest rate swap contracts— — — (1)
Forward interest rate contracts
— (2)— (3)

The following table summarizes the effect of derivative instruments designated as hedges in Other comprehensive income/(loss):
Three Months Ended June 30,Six Months Ended June 30,
Dollars in millions2026202520262025
Derivatives designated as cash flow hedges
Foreign currency exchange contracts gains/(losses):
Recognized in Other comprehensive income/(loss)$24 $(299)$91 $(515)
Reclassified to Alliance and other revenues
9 — 23 — 
Reclassified to Cost of products sold
— 13 — (13)
Cross-currency swap contracts gains/(losses):
Recognized in Other comprehensive income/(loss)8 70 (5)94 
Reclassified to Other (income)/expense, net2 (73)19 (121)
Forward interest rate contract gains/(losses):
Reclassified to Other (income)/expense, net(1)(2)(3)(3)
Derivatives designated as net investment hedges
Cross-currency swap contracts gains/(losses):
Recognized in Other comprehensive income/(loss)6 (45)16 (63)
Foreign currency exchange contracts gains/(losses):
Recognized in Other comprehensive income/(loss)14 (15)14 (78)