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SHARE-BASED COMPENSATION (Tables) | 6 Months Ended
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Jun. 30, 2025
Share-Based Payment Arrangement [Abstract] |
Summary of RSU Activity | RSU activity under all stock plans for the six months ended June 30, 2025, was as follows (in millions, except per share amounts):
| Shares |  | Weighted-Average Grant-Date Fair Value
Unvested balance as of December 31, 2024 | 5.2 |  |  | $ | 314.39 |
RSUs granted | 1.6 |  |  | $ | 577.16 |
RSUs vested | (1.7) |  |  | $ | 295.39 |
RSUs forfeited | (0.2) |  |  | $ | 354.07 |
Unvested balance as of June 30, 2025 | 4.9 |  |  | $ | 405.57 |
Summary of Stock Option Activity Under All Stock Plans | Stock option activity under all stock plans for the six months ended June 30, 2025, was as follows (in millions, except per share amounts):
|  | Stock Options Outstanding
|  | Number Outstanding |  | Weighted-Average Exercise Price Per Share
Balance as of December 31, 2024 |  | 7.1 |  |  | $ | 192.90 |
Options granted |  | — |  |  | $ | — |
Options exercised |  | (0.9) |  |  | $ | 135.30 |
Options forfeited or expired |  | — |  |  | $ | 241.29 |
Balance as of June 30, 2025 |  | 6.2 |  |  | $ | 200.19 |
Share-Based Payment Arrangement, Performance Shares, Activity | PSU activity for the six months ended June 30, 2025, was as follows (in millions, except per share amounts):
|  | Shares |  | Weighted-Average Grant Date Fair Value Per Share
Unvested balance as of December 31, 2024 |  | 0.3 |  |  | $ | 306.94 |
Granted |  | 0.1 |  |  | $ | 580.93 |
Vested |  | (0.1) |  |  | $ | 299.32 |
Performance change |  | — |  |  | $ | 267.23 |
Forfeited |  | — |  |  | $ | — |
Unvested balance as of June 30, 2025 |  | 0.3 |  |  | $ | 367.92 |
Summary of Share-Based Compensation Expense | The following table summarizes share-based compensation expense (in millions):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Cost of revenue – product (before capitalization) | $ | 33.1 |  |  | $ | 25.4 |  |  | $ | 64.0 |  |  | $ | 48.2 |
Amounts capitalized into inventory | (31.3) |  |  | (23.7) |  |  | (59.8) |  |  | (45.1) |
Amounts recognized in income for amounts previously capitalized in inventory | 28.5 |  |  | 21.9 |  |  | 56.3 |  |  | 43.2 |
Cost of revenue – product | $ | 30.3 |  |  | $ | 23.6 |  |  | $ | 60.5 |  |  | $ | 46.3 |
Cost of revenue – service | 8.6 |  |  | 7.6 |  |  | 16.8 |  |  | 14.6 |
Total cost of revenue | 38.9 |  |  | 31.2 |  |  | 77.3 |  |  | 60.9 |
Selling, general, and administrative | 86.3 |  |  | 79.6 |  |  | 168.6 |  |  | 147.8 |
Research and development | 74.7 |  |  | 65.6 |  |  | 143.7 |  |  | 123.3 |
Share-based compensation expense before income taxes | 199.9 |  |  | 176.4 |  |  | 389.6 |  |  | 332.0 |
Income tax benefit | 39.3 |  |  | 36.1 |  |  | 76.3 |  |  | 68.5 |
Share-based compensation expense after income taxes | $ | 160.6 |  |  | $ | 140.3 |  |  | $ | 313.3 |  |  | $ | 263.5 |
Schedule of Estimated Fair Value of the Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions | :
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
ESPP |  |  |  |  |  |  |
Risk-free interest rate | —% |  | —% |  | 4.2% |  | 4.6%
Expected term (in years) | 0.0 |  | 0.0 |  | 1.2 |  | 1.2
Expected volatility | —% |  | —% |  | 30% |  | 32%
Fair value at grant date | $— |  | $— |  | $170.50 |  | $115.48

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