v3.26.1
Stock Based Compensation
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
12. Stock-Based Compensation
The components of stock-based compensation expense are presented below:
Second QuarterFirst Six Months
(in millions)2026202520262025
Total stock-based compensation expense(1)
$177 $23 $207 $45 
Income tax benefit(6)(3)(11)(8)
Stock-based compensation expense, net of tax$171 $20 $196 $37 
(1)For the second quarter and first six months of 2026, stock-based compensation expense includes $134 million related to the portion of the fair value of JDE Peet's stock-based compensation awards which were accelerated and which does not relate to pre-combination service.
RESTRICTED SHARE UNITS
The table below summarizes RSU activity:
RSUs
Weighted Average Grant Date Fair ValueWeighted Average Remaining Contractual Term (Years)Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2025
13,120,837 $29.62 1.8$368 
Granted(1)
6,016,672 27.68 
Vested and released(3,162,034)31.10 92 
Forfeited(1,028,810)29.23 
Outstanding as of June 30, 2026
14,946,665 $28.55 1.9$489 
(1)Includes certain legacy stock-based awards of JDE Peet’s which were converted into KDP awards as a result of the JDE Peet’s Acquisition. Refer to Note 2 for additional information.
As of June 30, 2026, there was $252 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted average period of 2.8 years.
PERFORMANCE SHARE UNITS
The table below summarizes PSU activity:
PSUs
Weighted Average Grant Date Fair ValueWeighted Average Remaining Contractual Term (Years)Aggregate Intrinsic Value (in millions)
Balance as of December 31, 2025
446,818 $30.60 2.2$13 
Granted520,456 28.39 
Forfeited or expired(107,178)29.74 
Balance as of June 30, 2026
860,096 $29.37 2.2$28 
As of June 30, 2026, there was $16 million of unrecognized compensation cost related to unvested PSUs that is expected to be recognized over a weighted average period of 2.3 years.