Earnings Per Common Share
The calculation of EPS and diluted EPS for 2025, 2024 and 2023 is presented below. For more information on the calculation of EPS, see Note 1 – Summary of Significant Accounting Principles.
(In millions, except per share information)202520242023
Earnings per common share  
Net income$30,509 $26,973 $26,305 
Preferred stock dividends and other
(1,454)(1,629)(1,649)
Net income applicable to common shareholders$29,055 $25,344 $24,656 
Average common shares issued and outstanding7,521.9 7,855.5 8,028.6 
Earnings per common share$3.86 $3.23 $3.07 
Diluted earnings per common share  
Net income applicable to common shareholders$29,055 $25,344 $24,656 
Add preferred stock dividends due to assumed conversions223   
Net income allocated to common shareholders$29,278 $25,344 $24,656 
Average common shares issued and outstanding7,521.9 7,855.5 8,028.6 
Dilutive potential common shares
159.0 80.3 51.9 
Total average diluted common shares issued and outstanding
7,680.9 7,935.8 8,080.5 
Diluted earnings per common share$3.81 $3.19 $3.05 
Diluted EPS is calculated by adjusting net income applicable to common shareholders and average common shares issued and outstanding for the potential impact, if dilutive, of any instruments that are exercisable or convertible into common shares. As the Corporation’s Series L convertible preferred stock (Series L) was dilutive to EPS for 2025, total average dilutive common shares issued and outstanding included 62 million common shares, as the Series L was assumed to have been converted into common shares as of the beginning of 2025. In addition, for 2025, Series L preferred dividends of $223 million were included in net income allocated to common shareholders, as they would have been paid if the Series L was converted. For 2024 and 2023, the Corporation’s Series L was antidilutive, and therefore, there was no assumed conversion of any shares.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 25, 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.