Stock-Based Compensation

9 Months Ended

Sep. 30, 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.

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2026		2025		2026		2025
Cost	$	59	$	67	$	208	$	199
SG&A expense	278		233		776		694
R&D expense	197		144		555		393
Pre-tax stock-based compensation cost	535		444		1,539		1,285
Income tax benefits	(205)		(228)		(558)		(578)
Net stock-based compensation cost	$	330	$	215	$	981	$	707

Pre-tax stock-based compensation cost for the three months ended September 30, 2026 increased $91 million compared to the corresponding period in the prior year primarily due to increases in restricted stock units ($80 million) and performance share units ($12 million). For the nine months ended September 30, 2026 pre-tax stock-based compensation cost increased $253 million compared to the corresponding period in the prior year primarily due to increases in restricted stock units ($210 million) and performance share units ($37 million). For both the three and nine months ended September 30, 2026, the increases are driven by the issuance and assumption of stock-based compensation awards in connection with recent acquisitions, adjustments related to targets for performance share units and the company's annual cycle for employees.

Total unrecognized compensation cost related to non-vested awards at September 30, 2026 was $2.5 billion and is expected to be recognized over a weighted-average period of approximately 2.5 years.