v3.26.1
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
March 31, 2026December 31, 2025
Dollars in millionsLevel 1Level 2Level 3Level 1Level 2Level 3
Cash and cash equivalents
Money market and other securities$— $7,187 $— $— $6,891 $— 
Marketable debt securities
Certificates of deposit— 750 — — 350 — 
Corporate debt securities— 422 — — 439 — 
U.S. Treasury securities— 107 — — 71 — 
Derivative assets— 316 — — 303 — 
Equity investments
237 — 85 552 — 85 
Derivative liabilities— 150 — — 123 — 
Contingent consideration liability
Contingent value rights(a)
— — 607 3 — 607 
(a)    Includes the fair value of contingent value rights associated with the Mirati acquisition. The fair value of contingent value rights was estimated using a probability-weighted expected return method.
Schedule of Equity Investments
The following summarizes the carrying amount of equity investments:
Dollars in millionsMarch 31,
2026		December 31,
2025
Equity investments with RDFV
$237 $552 
Equity investments without RDFV
871 806 
Limited partnerships and other investments767 738 
Total equity investments$1,875 $2,096 
Debt Securities, Trading, and Equity Securities, FV-NI
The following summarizes the activity related to equity investments. Changes in fair value of equity investments are included in Other (income)/expense, net.
Three Months Ended March 31,
Dollars in millions20262025
Equity investments with RDFV
Net (gains)/losses recognized$(35)$5 
Less: net (gains)/losses recognized on investments sold(6)4 
Net unrealized (gains)/losses recognized on investments still held(29)1 
Equity investments without RDFV
Upward adjustments
(171)— 
Net realized (gains)/losses recognized on investments sold35 19 
Impairments and downward adjustments
62 45 
Limited partnerships and other investments
Equity in net (income)/loss of affiliates and other adjustments
(25)9 
Total equity investment (gains)/losses
$(134)$78 
Schedule of Derivatives and Fair Value
The following table summarizes the fair value and the notional values of outstanding derivatives:
 March 31, 2026December 31, 2025
Asset(a)
Liability(b)
Asset(a)
Liability(b)
Dollars in millionsNotionalFair ValueNotionalFair ValueNotionalFair ValueNotionalFair Value
Designated as cash flow hedges
Foreign currency exchange contracts
$5,304 $187 $989 $(56)$5,074 $145 $1,542 $(64)
Cross-currency swap contracts584 52 — — 584 65 — — 
Designated as net investment hedges
Cross-currency swap contracts362 42 345 (41)362 39 345 (48)
Designated as fair value hedges
Interest rate swap contracts3,500 26 1,655 (9)4,000 46 555 (5)
Not designated as hedges
Foreign currency exchange contracts1,502 9 1,415 (19)1,887 8 667 (5)
Total return swap contracts(c)
— — 441 (24)— — 447 (1)
(a)    Included in Other current assets and Other non-current assets.
(b)    Included in Other current liabilities and Other non-current liabilities.
(c)    Total return swap contracts hedge changes in fair value of certain deferred compensation liabilities.
Derivative Instruments, Gain (Loss)
The following table summarizes the financial statement classification and amount of gains and losses recognized on hedges:
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
Dollars in millions
Gains/(losses) recognized in
Alliance and other revenues
(Gains)/losses recognized in
Other (income)/expense, net
(Gains)/losses recognized in
Cost of products sold
(Gains)/losses recognized in
Other (income)/expense, net
Foreign currency exchange contracts
$(15)$(22)$(26)$16 
Cross-currency swap contracts— 12 — (50)
Interest rate swap contracts— (5)— (1)
Forward interest rate contracts
— (1)— (1)

The following table summarizes the effect of derivative and non-derivative instruments designated as hedges in Other comprehensive income/(loss):
Three Months Ended March 31,
Dollars in millions20262025
Derivatives designated as cash flow hedges
Foreign currency exchange contracts gains/(losses):
Recognized in Other comprehensive income/(loss)$67 $(216)
Reclassified to Alliance and other revenues
15 — 
Reclassified to Cost of products sold
— (26)
Cross-currency swap contracts gains/(losses):
Recognized in Other comprehensive income/(loss)(13)24 
Reclassified to Other (income)/expense, net16 (48)
Forward interest rate contract gains/(losses):
Reclassified to Other (income)/expense, net(1)(1)
Derivatives designated as net investment hedges
Cross-currency swap contracts gains/(losses):
Recognized in Other comprehensive income/(loss)9 (18)
Foreign currency exchange contracts gains/(losses):
Recognized in Other comprehensive income/(loss)(1)(63)