v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense Amounts recognized in the financial statements with respect to stock-based compensation programs, which include stock options, restricted stock, restricted stock units, performance shares and the General Employees’ Stock Purchase Plan (GESPP), are provided in the following table. Capitalized stock-based compensation amounts were not material.
(Millions)202520242023
Cost of sales$32 $39 $38 
Selling, general and administrative expenses158 185 165 
Research, development and related expenses35 44 38 
Stock-based compensation expenses225 268 241 
Income tax benefits(41)(31)(41)
Stock-based compensation expenses (benefits), net of tax$184 $237 $200 
Schedule of Share-Based Payment Arrangement, Option, Activity The following table summarizes stock option activity:
(Options in thousands)
Number of options
Weighted average exercise price
Weighted average remaining contractual life (months)
Aggregate intrinsic value (millions)
Under option —
As of January 1, 2025
32,523 $150.50 
Expired(91)167.20 
Granted723 148.87 
Exercised(10,871)139.29 
Forfeited(41)143.52 
As of December 31, 2025
22,243 155.87 45$284 
Options exercisable
As of December 31, 2025
20,716 $158.35 41$227 
Schedule of Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award
The following table summarizes additional information relative to stock options exercised during the respective years:
(Millions)
202520242023
Cash received from options exercised$1,514 $26 $147 
Intrinsic value of options exercised163 3 29 
Tax benefit realized related to options exercised35 1 6 
The following table summarizes additional information relative to restricted stock units for the respective years:
(Millions, except per-unit amounts)
202520242023
Weighted-average grant-date fair value of restricted stock units (per unit) that were granted$149.12 $98.01 $114.71 
Intrinsic value of restricted stock units that vested176 73 81 
Tax benefit realized related to restricted stock units that vested35 14 16 
The following table summarizes additional information relative to performance shares for the respective years:
(Millions, except per-share amounts)
202520242023
Weighted average grant date fair value per performance share that were granted$169.38 $97.82 $110.21 
Intrinsic value of performance shares that were distributed15 9 19 
Tax benefit realized related to performance shares that were distributed4 2 5 
The following table summarizes additional information relative to GESPP for the respective years:
(Millions, except per-share amounts)
202520242023
Weighted average fair value per option granted(a)
$22.44 $16.76 $15.77 
GESPP options compensation expense
14 12 21 
(a)     The fair value of GESPP options was based on the 15% purchase price discount.
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions
For the primary annual stock option grant, the weighted average fair value at the date of grant was calculated using the Black-Scholes option-pricing model and the assumptions that follow.
2025
20242023
Exercise price$148.87 $97.15 $116.90 
Risk-free interest rate4.5 %4.4 %3.8 %
Dividend yield3.9 %3.8 %3.3 %
Expected volatility26.1 %24.6 %22.8 %
Expected life (months)919584
Black-Scholes fair value$33.04 $20.53 $22.22 
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity The following table summarizes restricted stock unit activity:
(Units in thousands)
Number of units
Weighted average grant date fair value
Nonvested balance —
As of January 1, 2025
6,150 $104.83 
Vested(1,193)127.28 
Granted517 149.12 
Forfeited(347)103.22 
As of December 31, 2025
5,127 104.18 
Schedule of Nonvested Performance-Based Units Activity
The following table summarizes performance share activity:
(Shares in thousands)
Number of shares
Weighted average grant date fair value
Undistributed balance —
As of January 1, 2025
782 $101.99 
Vested(99)127.42 
Granted325 169.38 
Performance change26 79.53 
Forfeited(122)114.86 
As of December 31, 2025
912 120.88