EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. BAM applies the two-class method in calculating earnings per share for each of its two classes of shares and participating securities, based on their pro-rata share of earnings. Class A Shares held under the ES Plans in one or more private wholly owned subsidiaries of BAM are classified as treasury shares and have been excluded from the calculation of earnings per share. BAM has certain dilutive securities relating to outstanding escrowed shares and options held by employees and non-employees that have been reflected accordingly in diluted earnings per share figures. Basic and diluted net income per share of common stock for the years ended December 31, 2025, 2024 and 2023 was calculated as follows:

FOR THE YEARS ENDED DECEMBER 31,
(MILLIONS)
2025
2024
2023
Class A Shares
Class B Shares
Class A Shares
Class B Shares
Class A Shares
Class B Shares
Numerator
Net income$2,482 $ $2,165 $— $1,837 $— 
Denominator
Weighted average of common stock outstanding - basic1,612.2  1,603.4 — 1,585.8 — 
Dilutive effect of conversion of options and escrowed shares using treasury stock method16.3  10.2 — 4.8 — 
Weighted average of common stock outstanding - diluted1,628.5  1,613.6 — 1,590.6 — 
Net Income per Share
Earnings per share - basic$1.54 $1.54 $1.35 $1.35 $1.16 $1.16 
Earnings per share - diluted$1.52 $1.54 $1.34 $1.35 $1.16 $1.16 
The following weighted average potentially dilutive securities were evaluated under the treasury stock method for potentially dilutive effects and have been excluded in the above computation of diluted net income per share attributable to common shareholders for the period presented due to their anti-dilutive effect:
FOR THE YEARS ENDED DECEMBER 31,
(MILLIONS)
202520242023
Management stock options of BAM3.8 4.2 8.2 
Escrow shares of BAM3.6 3.7 5.0 
Total7.4 7.9 13.2 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 17, 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.