Stock-based Compensation Expense and Share Repurchase Programs

6 Months Ended

Jun. 30, 2026

Stock-based compensation expense

During the three and six months ended June 30, 2026 and 2025, we recognized the following stock-based compensation

expense:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025

	(in millions)
Stock-based compensation expense by type of award:
Restricted stock units (including PSUs)	$165.9	$162.9	$332.4	$326.3
ESPP share issuances	5.8	7.1	9.2	12.7
Stock options	2.2	1.2	2.2	1.2
Stock-based compensation expense related to inventories	(3.7)	(3.9)	(7.2)	(6.8)
Total stock-based compensation expense included in “Total costs and expenses”	$170.2	$167.3	$336.6	$333.4

Stock-based compensation expense by line item:
Cost of sales	$3.8	$2.5	$7.0	$5.1
Research and development expenses	104.4	99.6	206.1	199.7
Selling, general and administrative expenses	62.0	65.2	123.5	128.6
Total stock-based compensation expense included in “Total costs and expenses”	170.2	167.3	336.6	333.4
Income tax effect	(35.3)	(36.5)	(70.6)	(111.7)
Total stock-based compensation expense, net of tax	$134.9	$130.8	$266.0	$221.7

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. As of June 30, 2026, we had $2.6

billion remaining available under the 2025 Share Repurchase Program.

During each of the six months ended June 30, 2026 and 2025, we repurchased 1.8 million shares of our common stock

under our share repurchase programs, for aggregate repurchases of $799.5 million and $811.4 million, respectively.