Earnings Per Share
Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share incorporate the incremental shares issuable upon the assumed exercise of stock options and the assumed vesting of RSUs. Certain of our RSUs and stock options were excluded from the calculation of diluted earnings per share because they were antidilutive, but these equity instruments could be dilutive in the future.

The following chart sets forth the computation of earnings per share (in millions, except per share amounts):

Year Ended December 31,
 202520242023
Income from continuing operations$597 $669 $934 
Denominator for basic earnings per share—Weighted-average shares outstanding257.5 263.6 267.6 
Effect of dilutive securities:
RSUs0.3 0.2 0.5 
PSUs— 0.1 0.2 
Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding257.8263.9268.3
Basic earnings per share from continuing operations$2.32 $2.54 $3.49 
Diluted earnings per share from continuing operations (1)
$2.31 $2.54 $3.48 
(1)    Diluted earnings per share from continuing operations was computed using the treasury stock method for dilutive securities.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 27, 2020
2018Mar 1, 2019
2017Feb 28, 2018
2016Feb 27, 2017
2015Feb 25, 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.