Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share ("EPS") for the years ended December 31 ($ in millions except per share data; share data in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Net income | $ | 1,348 | | | $ | 814 | | | $ | 969 | |
| Net (income) loss attributable to non-controlling interests | 2 | | | 1 | | | — | |
| Net income attributable to common stockholders | $ | 1,350 | | | $ | 815 | | | $ | 969 | |
| | | | | |
| Weighted-average shares used to calculate basic EPS | 97,883 | | | 95,457 | | | 93,615 | |
| Effect of dilutive securities: | | | | | |
| Employee equity awards | 240 | | | 370 | | | 394 | |
| Weighted-average shares used to calculate diluted EPS | 98,123 | | | 95,827 | | | 94,009 | |
| | | | | |
| EPS attributable to common stockholders: | | | | | |
| Basic EPS | $ | 13.79 | | | $ | 8.54 | | | $ | 10.35 | |
| Diluted EPS | $ | 13.76 | | | $ | 8.50 | | | $ | 10.31 | |
The following table sets forth potential shares of common stock that are not included in the diluted EPS calculation above because to do so would be anti-dilutive for the years ended December 31 (in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Common stock related to employee equity awards | 398 | | | 359 | | | 68 | |
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.