17. Earnings per Share

The following presents basic and diluted net income (loss) per share of common stock computed using the two-class method:

Basic and Diluted
Years ended December 31,
(In millions, except share and per share amounts)202520242023
Numerator:
Net income (loss) attributable to common stockholders$3,395 $4,480 $5,001 
Dividends declared on common stock1
(1,143)(1,032)(961)
Dividends on participating securities2
(58)(60)(51)
Earnings allocable to participating securities(50)(91)(115)
Undistributed income (loss) attributable to common stockholders: Basic2,144 3,297 3,874 
Dilution effect on distributable income attributable to Mandatory Convertible Preferred Stock— 97 46 
Dilution effect on distributable income attributable to contingent shares— — (5)
Undistributed income (loss) attributable to common stockholders: Diluted$2,144 $3,394 $3,915 
Denominator:
Weighted average number of shares of common stock outstanding: Basic 589,450,878 586,069,166 581,380,268 
Dilution effect of Mandatory Convertible Preferred Stock— 14,530,212 6,440,346 
Dilution effect of options887,361 1,090,151 994,172 
Dilution effect of warrants3,318,984 2,346,463 — 
Dilution effect of contingent shares— — 31,661 
Weighted average number of shares of common stock outstanding: Diluted593,657,223 604,035,992 588,846,447 
Net income (loss) per share of common stock: Basic
Distributed income$1.99 $1.82 $1.69 
Undistributed income (loss)3.59 5.57 6.63 
Net income (loss) per share of common stock: Basic$5.58 $7.39 $8.32 
Net income (loss) per share of common stock: Diluted
Distributed income$1.99 $1.82 $1.69 
Undistributed income (loss)3.55 5.51 6.59 
Net income (loss) per share of common stock: Diluted$5.54 $7.33 $8.28 
1 See note 16 for information regarding quarterly dividends.
2 Participating securities consist of vested and unvested RSUs that have rights to dividends and unvested restricted shares.

The Company has granted RSUs that provide the right to receive, subject to vesting during continued employment, shares of common stock pursuant to the Equity Plan.

Any dividend equivalent paid to an employee on RSUs will not be returned to the Company upon forfeiture of the award by the employee. Vested and unvested RSUs that are entitled to non-forfeitable dividend equivalents qualify as participating securities and are included in the Company’s basic and diluted earnings per share computations using the two-class method. The holder of an RSU participating security would have a contractual obligation to share in the losses of the entity if the holder is obligated to fund the losses of the issuing entity or if the contractual principal or mandatory redemption amount of the participating security is reduced as a result of losses incurred by the issuing entity. The RSU participating securities do not have a mandatory redemption amount and the holders of the participating securities are not obligated to fund losses; therefore, neither the vested RSUs nor the unvested RSUs are subject to any contractual obligation to share in losses of the Company.
The following table summarizes the anti-dilutive securities:

Years ended December 31,
202520242023
Weighted average unvested RSUs12,562,494 14,273,743 15,316,350 
Weighted average unexercised warrants477,848 63,388 4,761,918 
Weighted average Mandatory Convertible Preferred Stock14,551,626 — — 
Weighted average unvested restricted shares1,360,830 1,327,484 1,688,421 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 24, 2025
2023Feb 27, 2024
2022Mar 1, 2023

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.