EARNINGS PER SHARE
We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding restricted shares. We calculate diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based instruments, including stock options, restricted stock awards and warrants. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material. The following table shows our computation:

Basic and diluted earnings per share
Year Ended December 31,
(in millions, except per share data)202520242023
Net income$5,005 $3,457 $4,609 
Basic weighted average shares outstanding648 641 639 
Dilutive effect of share-based instruments
Diluted weighted average shares outstanding654 648 643 
Basic earnings per share$7.72 $5.39 $7.21 
Diluted earnings per share$7.66 $5.33 $7.17 

Historical Timeline

Fiscal YearFiled
2025Feb 11, 2026Showing above
2024Feb 11, 2025
2023Feb 12, 2024
2020Feb 12, 2021
2019Feb 13, 2020
2018Feb 15, 2019
2017Feb 23, 2018
2016Feb 13, 2017
2015Feb 5, 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.