EARNINGS PER SHARE
Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding, including the dilutive effect of outstanding share-based instruments such as employee stock awards and warrants. Antidilutive common stock equivalents from employee stock awards and warrants were 1.5 million, 1.5 million, and 2.1 million in 2025, 2024, and 2023.
(in millions, except per share amounts)
202520242023
Net income
$100 $395 $235 
Basic weighted average shares outstanding
118.171 126.136 127.375 
Dilutive effect of employee stock awards
1.755 1.886 0.967 
Dilutive effect of stock warrants
 0.350 0.366 
Diluted weighted average shares outstanding
119.926 128.372 128.708 
Basic earnings per share
$0.85 $3.13 $1.84 
Diluted earnings per share
$0.83 $3.08 $1.83 
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Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 14, 2025
2023Feb 14, 2024

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.