NOTE 13—EARNINGS PER COMMON SHARE
The following table sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2025, 2024 and 2023. Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total.
Table 13.1: Computation of Basic and Diluted Earnings per Common Share
Year Ended December 31,
(Dollars and shares in millions, except per share data)202520242023
Income from continuing operations, net of tax$2,088 $4,747 $4,887 
Income from discontinued operations, net of tax
365 
Net income2,453 4,750 4,887 
Dividends and undistributed earnings allocated to participating securities(26)(77)(77)
Preferred stock dividends(252)(228)(228)
Discount on redeemed preferred stock6 
Net income available to common stockholders$2,181 $4,445 $4,582 
Total weighted-average basic common shares outstanding540.7 382.7 382.4 
Effect of dilutive securities:(1)
Stock options0.1 0.2 0.1 
Other contingently issuable shares0.5 0.7 0.9 
Total effect of dilutive securities0.6 0.9 1.0 
Total weighted-average diluted common shares outstanding541.3 383.6 383.4 
Basic earnings per common share:
Net income from continuing operations$3.36 $11.60 $11.98 
Net income from discontinued operations
0.67 0.01 0.00 
Net income per basic common share$4.03 $11.61 $11.98 
Diluted earnings per common share:(1)
Net income from continuing operations$3.36 $11.58 $11.95 
Net income from discontinued operations
0.67 0.01 0.00 
Net income per diluted common share$4.03 $11.59 $11.95 
__________
(1)Excluded from the computation of diluted earnings per share were awards of 20 thousand shares, 32 thousand shares and 27 thousand shares for the years ended December 31, 2025, 2024 and 2023, respectively, because their inclusion would be anti-dilutive. There were no options excluded from the computation for the years ended December 31, 2025, 2024 and 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 25, 2021
2019Feb 20, 2020
2018Feb 20, 2019
2017Feb 21, 2018
2016Feb 23, 2017

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.