v3.26.3
Stock Based Compensation
 9 Months Ended
Sep. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The components of stock-based compensation expense are presented below:
Third QuarterFirst Nine Months
(in millions)2026202520262025
Total stock-based compensation expense(1)
$33 $25 $240 $70 
Income tax benefit(7)(5)(18)(13)
Stock-based compensation expense, net of tax$26 $20 $222 $57 
(1)For the first nine 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)
6,480,088 27.81 
Vested and released(3,404,940)30.98 100 
Forfeited(1,711,028)28.79 
Outstanding as of September 30, 2026
14,484,957 $28.59 1.7$439 
(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 September 30, 2026, there was $227 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted average period of 2.6 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 
Granted539,219 28.42 
Vested and released(2,154)30.27 — 
Forfeited or expired(130,536)29.64 
Balance as of September 30, 2026
853,347 $29.37 2.0$26 
As of September 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 2.1 years.