Stock-based compensation expense includes restricted stock units, or RSUs, performance stock units, or PSUs, market-based PSUs, and our employee stock purchase plan, or ESPP.

Condensed Consolidated Statements of Income include stock-based compensation expense, net of amounts capitalized into inventory, as follows:


	Three Months Ended				Six Months Ended
	Jul 27, 2025		Jul 28, 2024		Jul 27, 2025		Jul 28, 2024

	(In millions)
Cost of revenue	$	58	$	40	$	123	$	75
Research and development	1,191		832		2,254		1,559
Sales, general and administrative	375		282		722		530
Total	$	1,624	$	1,154	$	3,099	$	2,164

The following is a summary of our equity award transactions under our equity incentive plans:


	RSUs, PSUs and Market-based PSUs Outstanding
	Number of Shares	Weighted Average Grant-Date Fair Value Per Share

	(In millions, except per share data)
Balance as of Jan 26, 2025	274	$	44.75
Granted	48	$	108.52
Vested	(78)	$	36.00
Canceled and forfeited	(5)	$	52.34
Balance as of Jul 27, 2025	239	$	60.19

As of July 27, 2025, aggregate unearned stock-based compensation expense was $14.0 billion, which is expected to be recognized over a weighted average period of 2.2 years for RSUs, PSUs, and market-based PSUs, and one year for ESPP.