Note 3
Earnings per Common Share
Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding.
For the Company, dilutive potential common shares consist of outstanding stock options, unvested non-participating restricted stock units and contingently issuable performance stock awards. The effect of dilutive potential common shares does not include share-based awards with an anti-dilutive effect on earnings per common share, primarily options, where exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect.
Computation of basic and diluted earnings per common share
For the years ended December 31,
(In millions, except per share data)
202520242023
Numerator:
Net income (loss)
$10,266 $4,599 $(213)
Less: Net loss attributable to noncontrolling interest
(16)
(68)
(25)
Net income (loss) attributable to Allstate
10,282 
4,667 
(188)
Less: Preferred stock dividends
117 
117 
128 
Net income (loss) applicable to common shareholders
$10,165 $4,550 $(316)
Denominator:
Weighted average common shares outstanding
263.6 
264.3 
262.5 
Effect of dilutive potential common shares (1):
Stock options
2.4 
2.6 
— 
Restricted stock units (non-participating) and performance stock awards
1.1 
0.9 
— 
Weighted average common and dilutive potential common shares outstanding
267.1 
267.8 
262.5 
Net income (loss) applicable to common shareholders per common share - Basic
$38.56 $17.22 $(1.20)
Net income (loss) applicable to common shareholders per common share - Diluted (1)
$38.06 $16.99 $(1.20)
Anti-dilutive options excluded from diluted earnings per common share
0.4 
0.5 
3.0 
Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1)
— — 2.2 
(1)As a result of the net loss reported for the year ended December 31, 2023, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 24, 2025

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.