Earnings per share
The computation of basic EPS is based on the weighted-average number of our common shares outstanding. The computation of diluted EPS is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which primarily include shares that may be issued under our stock option, restricted stock and performance unit award programs (collectively, dilutive securities), as determined by using the treasury stock method.
The computations for basic and diluted earnings per share were as follows (in millions, except per-share data):
Years ended December 31,
202520242023
Income (Numerator):
Net income for basic and diluted earnings per share$7,711 $4,090 $6,717 
Shares (Denominator):
Weighted-average shares for basic earnings per share538 537 535 
Effect of dilutive securities
Weighted-average shares for diluted earnings per share542 541 538 
Basic earnings per share$14.33 $7.62 $12.56 
Diluted earnings per share$14.23 $7.56 $12.49 
For each of the three years ended December 31, 2025, the number of antidilutive employee stock-based awards excluded from the computation of diluted EPS was not significant.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 14, 2024
2022Feb 9, 2023
2021Feb 16, 2022
2020Feb 9, 2021
2019Feb 12, 2020
2018Feb 13, 2019
2017Feb 13, 2018
2016Feb 14, 2017
2015Feb 16, 2016

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.