2. Earnings Per Common Share
Computation of Basic and Diluted Earnings per Common Share
 For the years ended December 31,
(In millions, except for per share data)202520242023
Earnings   
Net income$3,836 $3,111 $2,504 
Less: Preferred stock dividends 21 21 21 
Net income available to common stockholders$3,815 $3,090 $2,483 
Shares
   
Weighted average common shares outstanding, basic282.4 293.9 307.1 
Dilutive effect of stock-based awards under compensation plans4.1 4.7 4.4 
Weighted average common shares outstanding and dilutive potential common shares [1]286.5 298.6 311.5 
Net income available to common stockholders per common share   
Basic
$13.51 $10.51 $8.09 
    Diluted$13.32 $10.35 $7.97 
[1]For additional information, see Note 15 - Equity and Note 19 - Stock Compensation Plans.
Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the year. Diluted earnings per common share includes the dilutive effect of stock-based awards under compensation plans.
Under the treasury stock method, for stock-based awards, shares are assumed to be issued and then reduced for the number of shares repurchasable with theoretical proceeds at the average market price for the period. Contingently issuable shares are included for the number of shares issuable assuming the end of the reporting period was the end of the contingency period, if dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2020Feb 19, 2021
2019Feb 21, 2020

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.