v3.26.1
Segment and other information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment and other information Segment and other information
We operate our business in one operating segment, which also represents one reportable segment: human therapeutics. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting.
The human therapeutics segment is engaged in the discovery, development, manufacturing and delivery of innovative medicines to fight some of the world’s toughest diseases. The Company’s Chief Executive Officer has been identified as the chief operating decision maker (CODM). The CODM manages and allocates resources on a consolidated basis. The determination of a single segment is consistent with the financial information regularly reviewed by the CODM for purposes of evaluating performance and allocating resources, which is reviewed on a consolidated basis.
As the Company’s CODM evaluates the financial performance of the Company’s human therapeutics segment on a consolidated basis, the measure of segment performance is net income, as reflected in the Condensed Consolidated Statements of Income. The CODM uses net income to allocate resources on a consolidated basis, which enables the CODM to both assess the overall level of resources available and optimize the distribution of resources across functions, therapeutic areas, regions and R&D programs in line with our long-term corporate-wide strategic goals. In addition, the CODM may also evaluate financial performance based on net income adjusted for certain items that are unusual and non-recurring. As the Company manages its assets on a consolidated basis, the measure of segment assets is total assets, as reflected in the Condensed Consolidated Balance Sheets. See Note 6, Investments, for further information regarding equity method investments, and Net cash used in investing activities in the Condensed Consolidated Statements of Cash Flows for further information regarding capital expenditures.
The following table provides segment revenues, significant segment expenses, other segment items and reported segment net income for the Company’s one reportable segment, as well as a reconciliation of segment net income to the Company’s total consolidated net income for the three and six months ended June 30, 2026 and 2025 (in millions):
Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Revenues:
Product sales$9,537 $8,771 $17,755 $16,644 
Other revenues517 408 917 684 
Total revenues10,054 9,179 18,672 17,328 
Less:
Manufacturing cost of sales(1)(2)
2,139 2,484 4,319 5,012 
Profit share and royalties in cost of sales(1)
672 527 1,236 967 
Research and development(1)
1,868 1,744 3,587 3,230 
Sales and marketing(1)
1,155 1,137 2,289 2,203 
General and administrative(1)
590 554 1,058 1,175 
Other segment items(3)
314 557 227 (5)
Interest income
(125)(86)(226)(212)
Interest expense, net673 694 1,330 1,417 
Provision for income taxes
393 136 658 379 
Segment net income2,375 1,432 4,194 3,162 
Reconciliation of profit or loss:
Adjustments and reconciling items— — — — 
Consolidated net income$2,375 $1,432 $4,194 $3,162 
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(1)    During the three months ended June 30, 2026 and 2025, amortization of our finite-lived intangible assets was $890 million and $1.1 billion, respectively. During the six months ended June 30, 2026 and 2025, amortization of our finite-lived intangible assets was $1.8 billion and $2.3 billion, respectively. Amortization of intangible assets is primarily included in Cost of sales in the Condensed Consolidated Statements of Income. In addition, during the three months ended June 30, 2026 and 2025, we recognized depreciation and right-of-use asset amortization of $222 million and $220 million, respectively. During the six months ended June 30, 2026 and 2025, we recognized depreciation and right-of-use asset amortization of $442 million and $429 million, respectively.
(2)    During the three months ended June 30, 2026 and 2025, manufacturing cost of sales included amortization of step-up to fair value of inventory acquired in business combinations of $60 million and $339 million, respectively. During the six months ended June 30, 2026 and 2025, manufacturing cost of sales included amortization of step-up to fair value of inventory acquired in business combinations of $307 million and $702 million, respectively.
(3)    For the three and six months ended June 30, 2026, other segment items primarily consisted of: (i) fair value adjustments on equity securities (see Note 6, Investments) and (ii) litigation expenses and settlements. For the three months ended June 30, 2025, other segment items included in Segment net income primarily consisted of fair value adjustments on equity securities (see Note 6, Investments). For the six months ended June 30, 2025, other segment items included in Segment net income primarily consisted of: (i) impairment charges on intangible assets (see Note 8, Goodwill and other intangible assets) and (ii) fair value adjustments on equity securities (see Note 6, Investments).