v3.25.4
EMPLOYEE BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-based Compensation Expenses -Included in Consolidated Statement of Income
The following tables summarize total stock-based compensation expense included on our Consolidated Statements of Operations, classified by award type and expense type:
Year Ended December 31,
(in millions)202520242023
RSUs$790 $732 $666 
PSUs33 37 32 
Stock options30 30 30 
ESPP41 36 37 
Acquisition-related expense(1)
— 133 29 
Stock-based compensation expense included in total costs and expenses$894 $969 $796 
_______________________________
(1)    Represents accelerated post-acquisition stock-based compensation expenses, primarily related to CymaBay in 2024.
Year Ended December 31,
(in millions)202520242023
Cost of goods sold$60 $61 $57 
Research and development expenses433 458 377 
Selling, general and administrative expenses401 450 361 
Stock-based compensation expense included in total costs and expenses894 969 796 
Income tax effect(254)(192)(165)
Stock-based compensation expense, net of tax$640 $777 $630 
Summary of RSU Activity
The following tables summarize our RSU activity:
RSUs
(in millions, except per share amounts)SharesWeighted-
Average
Grant Date Fair Value Per Share
Outstanding as of December 31, 202421.8 $73.52 
Granted8.9 $116.62 
Vested(10.5)$71.80 
Forfeited(2.4)$85.42 
Outstanding as of December 31, 202517.8 $94.39 
Year Ended December 31,
(in millions, except per share amounts)202520242023
Weighted-average grant date fair value of RSUs granted$116.62 $74.82 $79.66 
Total fair value of RSUs vested
$1,216 $847 $849 
Summary of PSU Activity
The following tables summarize our PSU activity:
PSUs
(in millions, except per share amounts)SharesWeighted-
Average
Grant Date Fair Value Per Share
Outstanding as of December 31, 20241.1 $72.24 
Granted0.5 $91.33 
Vested(0.7)$63.86 
Forfeited(0.2)$93.86 
Outstanding as of December 31, 20250.7 $100.00 
Year Ended December 31,
(in millions, except per share amounts)202520242023
Weighted-average grant date fair value of PSUs granted$91.33 $72.24 $81.39 
Total fair value of PSUs vested$73 $43 $35 
Summary of Activity Under Stock Option Plans
The following tables summarize activity and other information related to our stock options:
Shares
(in millions)		Weighted-
Average
Exercise Price
(in dollars)		Weighted-Average
Remaining
Contractual Term
(years)
Aggregate
 Intrinsic
Value
(in millions)(1)
Outstanding as of December 31, 202411.8 $69.85 
Granted1.5 $116.55 
Exercised(3.8)$70.38 
Forfeited(0.7)$83.85 
Expired(0.1)$102.24 
Outstanding as of December 31, 20258.7 $76.08 6.21$407 
Exercisable as of December 31, 20255.8 $67.54 5.23$321 
Expected to vest, net of estimated forfeitures as of December 31, 20252.8 $92.88 8.14$82 
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(1)    Aggregate intrinsic value represents the value of our closing stock price on the last trading day of the year in excess of the weighted-average exercise price multiplied by the number of options outstanding or exercisable.
Year Ended December 31,
(in millions, except per share amounts)202520242023
Weighted-average grant date fair value of stock options granted$22.96 $13.70 $16.11 
Total intrinsic value of options exercised$142 $77 $25 
Summary of Assumptions to Calculate the Estimated Fair Value of Awards
We used the following weighted-average assumptions in the Black-Scholes model to calculate the estimated fair value of the stock option awards:
Year Ended December 31,
202520242023
Expected volatility24 %25 %26 %
Expected terms in years555
Risk-free interest rate3.9 %4.1 %4.1 %
Expected dividend yield3.2 %3.9 %3.5 %
We used the following weighted-average assumptions in the Black-Scholes model to calculate the estimated fair value of the ESPP awards:
Year Ended December 31,
202520242023
Expected volatility28 %25 %24 %
Expected terms in years0.50.50.5
Risk-free interest rate4.2 %5.2 %5.1 %
Expected dividend yield3.2 %4.3 %3.7 %
Summary of ESPP Activity
The following table summarizes our ESPP activity:
Year Ended December 31,
(in millions, except per share amounts)202520242023
Shares issued222
Amount paid by employees for shares$143 $139 $129 
Weighted-average grant date fair value of ESPP shares granted$25.32 $15.76 $17.31 
Total fair value of ESPP shares vested
$75 $27 $45