Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Components of Income Before Provision for (Benefit From) Income Taxes

The components of income before provision for income

taxes consisted of the following:

	Year ended December 31,
	2025	2024	2023
	(in millions)
United States	$2,821.2	$(1,369.7)	$3,089.1
Foreign	1,822.0	1,618.2	1,290.7
Income before provision for income taxes	$4,643.2	$248.5	$4,379.8

Schedule of Components of Provision for (Benefit From) Income Taxes

The components of our provision for income taxes consisted of the following:

	Year ended December 31,
	2025	2024	2023
	(in millions)
Current taxes:
Federal	$679.1	$704.9	$900.4
State	35.9	118.2	46.2
Foreign	485.8	309.8	350.1
Total current taxes	1,200.8	1,132.9	1,296.7
Deferred taxes:
Federal	(527.0)	(438.7)	(569.9)
State	(22.1)	(48.7)	(21.9)
Foreign	38.3	138.6	55.3
Total deferred taxes	(510.8)	(348.8)	(536.5)
Provision for income taxes	$690.0	$784.1	$760.2

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of our provision for income taxes and our effective tax rate as compared to the U.S. federal statutory

rate of 21% for the year ended December 31, 2025 was as follows:

	Year ended December 31, 2025
	Amount	Percentage
	(in millions, except percentages)
Income before provision for income taxes	$4,643.2
Federal statutory tax rate	975.1	21.0%
State and local income taxes, net of federal income tax effect (1)	(1.9)	—%
Foreign tax effects
United Kingdom (“U.K.”)
Statutory tax rate difference between U.K. and U.S.	64.7	1.4%
Other	8.3	0.2%
Other foreign jurisdictions	10.5	0.2%
Effect of cross-border tax laws
Deferred charges related to intra-entity transfers	(61.5)	(1.3)%
Foreign-derived deduction eligible income	(58.5)	(1.3)%
Subpart F income, net of credits	(97.4)	(2.1)%
Other	0.8	—%
Tax credits
Research and development tax credits	(154.4)	(3.3)%
Nontaxable or nondeductible items
Stock compensation (benefit), shortfalls and cancellations	(61.9)	(1.3)%
Other	25.4	0.5%
Changes in unrecognized tax benefits	64.3	1.4%
Other adjustments	(23.5)	(0.5)%
Provision for income taxes and effective tax rate	$690.0	14.9%

(1)The state that contributes to the majority of the state and local tax effect is New Jersey.

A reconciliation of our provision for income taxes and our effective tax rate as compared to the U.S. federal statutory

rate of 21% for the years ended December 31, 2024 and 2023 was as follows:

	Year ended December 31,
	2024	2023
Federal statutory tax rate	21.0%	21.0%
State taxes, net of federal benefit	29.5%	0.3%
Foreign income tax rate differential	21.3%	(0.6)%
U.S. tax on foreign earnings, net of credits	(12.6)%	0.7%
Foreign derived intangible income deduction	(28.3)%	(1.7)%
Tax credits	(102.9)%	(6.0)%
Stock compensation (benefit), shortfalls and cancellations	(25.5)%	(0.8)%
Uncertain tax positions	11.3%	3.4%
Non-deductible AIPR&D	373.8%	—%
Other	27.9%	1.1%
Effective tax rate	315.5%	17.4%

Schedule of Deferred Tax Assets and Liabilities

The components of the deferred taxes

were as follows:

	As of December 31,
	2025	2024
	(in millions)
Deferred tax assets:
Tax credit carryforwards	$355.8	$298.3
Intangible assets	651.6	769.3
Stock-based compensation	171.8	164.2
Operating lease assets	390.7	333.5
R&D capitalization	1,920.5	1,404.1
Other	233.5	192.0
Gross deferred tax assets	3,723.9	3,161.4
Valuation allowance	(326.2)	(272.9)
Total deferred tax assets	3,397.7	2,888.5
Deferred tax liabilities:
Operating lease liabilities	(312.7)	(271.9)
Other	(187.1)	(285.5)
Total deferred tax liabilities	(499.8)	(557.4)
Net deferred tax assets	$2,897.9	$2,331.1

Summary of Operating Loss Carryforwards

As of December 31, 2025, we had the following net operating losses (“NOLs”), capital losses, and tax credit

carryforwards, which if not utilized, will begin to expire in the year listed below:

	As of December 31, 2025
	Amount	Year
	(in millions)
Federal net operating loss carryforwards	$57.3	2028
Federal capital loss carryforwards	$27.6	2027
Federal research and development tax credit carryforwards	$3.6	2034
State net operating loss carryforwards	$450.2	2027
State research and development tax credit carryforwards	$471.7	2026
Foreign net operating loss carryforwards	$30.3	2041
Foreign tax credit carryforwards	$15.9	2026

Summary of Tax Credit Carryforwards

As of December 31, 2025, we had the following net operating losses (“NOLs”), capital losses, and tax credit

carryforwards, which if not utilized, will begin to expire in the year listed below:

	As of December 31, 2025
	Amount	Year
	(in millions)
Federal net operating loss carryforwards	$57.3	2028
Federal capital loss carryforwards	$27.6	2027
Federal research and development tax credit carryforwards	$3.6	2034
State net operating loss carryforwards	$450.2	2027
State research and development tax credit carryforwards	$471.7	2026
Foreign net operating loss carryforwards	$30.3	2041
Foreign tax credit carryforwards	$15.9	2026

Schedule of Cash Paid for Income Taxes

Cash paid for income taxes was as follows:

	Year ended December 31, 2025
	(in millions)
Federal	$968.9
State	74.2
Foreign
United Kingdom	473.2
Other	50.4
Total cash paid for income taxes	$1,566.7

Schedule of Unrecognized Tax Benefits

Unrecognized tax benefits were as follows:

	Year ended December 31,
	2025	2024	2023
	(in millions)
Balance at beginning of the period	$706.2	$615.9	$459.6
Increases related to current period tax positions	119.5	119.2	116.0
Increases related to prior period tax positions	5.2	4.6	62.5
Decreases related to prior period tax positions	(5.7)	(1.9)	(14.4)
Statute of limitations expiration	(10.7)	(16.6)	(8.1)
Settlement with tax authorities	(6.3)	(14.5)	—
Changes in foreign exchange rates	43.9	(0.5)	0.3
Balance at end of period	$852.1	$706.2	$615.9