Earnings Per Share
The calculation of earnings per share is based on the weighted-average number of the Company’s shares outstanding for the applicable period. The calculation of diluted earnings per share reflects the effect of all potentially dilutive shares that were outstanding during the respective periods, unless the effect of doing so is antidilutive. The Company uses the treasury stock method to calculate the dilutive effect of outstanding share-based compensation awards. The number of weighted-average shares outstanding used in the computations of basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023 were as follows.
202520242023
Weighted-average shares outstanding - Basic398.1 403.4 404.8 
Dilutive effect of outstanding share-based compensation awards2.9 3.8 4.2 
Weighted-average shares outstanding - Diluted401.0 407.2 409.0 
For the years ended December 31, 2025, 2024 and 2023, there were 1.1 million, 0.5 million and 1.3 million anti-dilutive shares that were not included in the computation of diluted earnings per share, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 19, 2025
2023Feb 23, 2024
2022Feb 21, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 26, 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.