Earnings Per Share
Earnings per share is computed using the treasury stock method. Stock options and SARs to purchase 8 million shares of common stock were outstanding, but were excluded from the calculations of diluted earnings per share for each of the years ended December 31, 2025, 2024 and 2023 because their exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive.

The following is a reconciliation of basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023:
In millions, except per share amounts202520242023
Numerator for earnings per share calculation:
Net income attributable to CVS Health$1,768 $4,614 $8,344 
Denominator for earnings per share calculation:
Weighted average shares, basic1,267 1,259 1,285 
Restricted stock units and performance stock units
Stock options and SARs
Weighted average shares, diluted1,271 1,262 1,290 
Earnings per share:
Basic$1.40 $3.67 $6.49 
Diluted$1.39 $3.66 $6.47 

Historical Timeline

Fiscal YearFiled
2025Feb 10, 2026Showing above
2024Feb 12, 2025
2023Feb 7, 2024
2022Feb 8, 2023
2021Feb 9, 2022
2020Feb 16, 2021
2017Feb 14, 2018
2016Feb 9, 2017
2015Feb 9, 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.