As of September 3, 2026, 47 million shares of our common stock were available for future awards under our equity compensation plans, including 6 million shares approved for issuance under our employee stock purchase plan (“ESPP”).

As of September 3, 2026, there were 19 million shares of Restricted Stock Awards outstanding, 16 million of which are only subject to service-based vesting conditions. Service-based Restricted Stock Awards generally vest on 25% of the units granted after the first year and on 6.25% each quarter thereafter over the remaining three years of employment. Restricted Stock Awards with performance or market-based vesting conditions vest over a three-year period as conditions are met. At the end of the performance period, the number of actual shares to be awarded will vary between 0% and 200% of target amounts, depending upon the achievement level. Our unvested restricted stock awards generally include dividend equivalent rights.

Restricted Stock Awards activity for 2026 is summarized as follows:


	Number of Shares	Weighted-Average Grant Date Fair Value Per Share

Outstanding as of August 28, 2025	25	$	82.12
Granted	7	243.13
Vested	(12)	76.24
Forfeited	(1)	103.43
Outstanding as of September 3, 2026	19	144.38


For the year ended	2026		2025		2024

Restricted stock award shares granted	7		11		13
Weighted-average grant-date fair value per share	$	243.13	$	101.15	$	72.72
Aggregate vesting-date fair value of shares vested	$	4,846	$	1,322	$	1,008

Our ESPP is offered to substantially all employees and permitted eligible employees to purchase shares of our common stock through payroll deductions of up to 15% of their eligible compensation, subject to certain limitations. The purchase price of the shares under the ESPP equals 85% of the lower of the fair market value of our common stock on either the first or last day of each six-month offering period. Under the ESPP, employees purchased 2 million shares of common stock in 2026, and 4 million shares of common stock in each of 2025 and 2024.


For the year ended	2026		2025		2024

Stock-based compensation expense by caption
Cost of goods sold	$	528	$	409	$	312
Research and development	495		347		296
Selling, general, and administrative	259		219		213
	$	1,282	$	975	$	821

Stock-based compensation expense by type of award
Restricted stock awards	$	1,153	$	877	$	749
ESPP	129		98		72
	$	1,282	$	975	$	821

Income tax benefits related to the tax deductions for share-based awards are recognized only upon the settlement of the related share-based awards. Income tax benefits for share-based awards were $633 million, $163 million, and $140 million for 2026, 2025, and 2024, respectively. The capitalized stock-based compensation expense that remained in inventory was not material for any period presented. As of September 3, 2026, $1.98 billion of total unrecognized compensation costs for unvested awards, before the effect of any future forfeitures, was expected to be recognized through the fourth quarter of 2030, resulting in a weighted-average period of 1.2 years.