Stock-Based Compensation

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation:

Stock-based compensation cost for stock awards and stock options is measured at grant date, based on the fair value of the award, and is recognized over the employee requisite service period. The following table presents total stock-based compensation cost included in income from continuing operations.

($ in millions)
For the three months ended March 31:	2026		2025
Cost	$	76	$	65
Selling, general and administrative	270		217
Research and development	160		119
Pre-tax stock-based compensation cost	506		401
Income tax benefits	(207)		(194)
Total net stock-based compensation cost	$	299	$	207

Pre-tax stock-based compensation cost for the three months ended March 31, 2026 increased $105 million compared to the corresponding period in the prior year primarily due to increases in restricted stock units ($50 million) and performance share units ($47 million). The increases reflect the company's annual cycle for employees, improved attainment of targets related to performance share units and the issuance and assumption of stock-based compensation awards in connection with recent acquisitions.

Total unrecognized compensation cost related to non-vested awards at March 31, 2026 was $2.9 billion and is expected to be recognized over a weighted-average period of approximately 2.3 years.