Keysight accounts for share-based awards in accordance with the provisions of the authoritative accounting guidance, which requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including restricted stock units (“RSUs”), employee stock purchases made under our Employee Stock Purchase Plan (“ESPP”), and performance share awards granted to selected members of our senior management under the Long-Term Performance (“LTP”) Program, based on estimated fair values. The impact of share-based compensation expense on the condensed consolidated statement of operations was as follows:


	Three Months Ended				Nine Months Ended
	July 31,				July 31,
	2026		2025		2026		2025
	(in millions)
Cost of sales	$	8	$	8	$	37	$	28
Research and development	13		9		49		34
Selling, general and administrative	26		15		96		69
Total share-based compensation expense	$	47	$	32	$	182	$	131