EARNINGS PER SHARE
The following table presents the computation of basic and diluted earnings per share of common stock.
($ in millions except per share amounts)
For the year ended December 31:
2025 (1)
2024 (1)
2023
Weighted-average number of shares on which earnings per share calculations are based   
Basic932,293,927921,767,834911,210,319
Add—incremental shares under stock-based compensation plans13,853,30813,012,7558,700,951
Add—incremental shares associated with contingently issuable shares2,527,9942,380,6362,162,558
Assuming dilution948,675,228937,161,224922,073,828
Income from continuing operations$10,571 $6,015 $7,514 
Income/(loss) from discontinued operations, net of tax22 (12)
Net income on which basic and dilutive earnings per share is calculated $10,593 $6,023 $7,502 
Earnings/(loss) per share of common stock   
Assuming dilution   
Continuing operations$11.14 $6.42 $8.15 
Discontinued operations0.02 0.01 (0.01)
Total$11.17 $6.43 $8.14 
Basic   
Continuing operations$11.34 $6.53 $8.25 
Discontinued operations0.02 0.01 (0.01)
Total$11.36 $6.53 $8.23 
(1)Refer to "Basis of Presentation" in note A, "Significant Accounting Policies," for additional information.
Weighted-average stock options to purchase 1,381,290 common shares in 2025, 764,673 common shares in 2024 and 1,761,463 common shares in 2023 were outstanding, but were not included in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of the common shares for the full year, and therefore, the effect would have been antidilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 26, 2024
2022Feb 28, 2023
2021Feb 22, 2022
2020Feb 23, 2021
2019Feb 25, 2020
2018Feb 26, 2019
2017Feb 27, 2018
2016Feb 28, 2017
2015Feb 23, 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.