STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

10. STOCK-BASED COMPENSATION

Stock-based compensation expense related to awards issued under the Company's incentive compensation plans for the three months ended March 31, 2026 and 2025 was as follows (in millions):


	Three Months Ended March 31,
		2026		2025
Cost of sales		$	8.2	$	7.3
Selling, general, and administrative expenses		25.9		22.8
Research and development expenses		11.3		10.0

Total stock-based compensation expense		45.4		40.1
Income tax benefit		(7.5)		(6.5)
Total stock-based compensation expense, net of tax		$	37.9	$	33.6

At March 31, 2026, the total remaining compensation cost related to nonvested stock options, restricted stock units, market-based restricted stock units, and employee stock purchase plan (“ESPP”) subscription awards amounted to $264.3 million, which will be amortized on a straight-line basis over each award's requisite service period. The weighted-average remaining requisite service period is 28 months.

Fair Value Disclosures

The following table includes the weighted-average grant-date fair values of stock options granted during the periods indicated and the related weighted-average assumptions used in the Black-Scholes option pricing model:


Option Awards	Three Months Ended March 31,
	2026		2025
Risk-free interest rate	3.8%		4.4%
Expected dividend yield	None		None
Expected volatility	34.0%		31.0%
Expected term (years)	5.6		5.5
Fair value, per option	$	29.50	$	28.43

The following table includes the weighted-average grant-date fair values for ESPP subscriptions granted during the periods indicated and the related weighted-average assumptions used in the Black-Scholes option pricing model:


ESPP	Three Months Ended March 31,
	2026		2025
Risk-free interest rate	3.6%		4.3%
Expected dividend yield	None		None
Expected volatility	34.5%		29.5%
Expected term (years)	0.6		0.6
Fair value, per share	$	22.65	$	17.99

Edwards Lifesciences Corp 10-Q