EARNINGS PER SHARE
The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share, the latter of which uses the treasury stock method to calculate the dilutive effect of the Company’s potential common stock:
(in millions, except per share amounts)202520242023
Computation of Basic Earnings Per Share
Net income$2,601 $2,375 $3,083 
Shares for basic earnings per share272.9 284.2 301.5 
Basic earnings per share$9.53 $8.36 $10.23 
Computation of Diluted Earnings Per Share
Net income$2,601 $2,375 $3,083 
Shares for basic earnings per share272.9 284.2 301.5 
Effect of dilutive securities
Stock-based compensation0.7 1.0 1.4 
Shares for diluted earnings per share273.6 285.2 302.9 
Diluted earnings per share
$9.51 $8.33 $10.18 

Historical Timeline

Fiscal YearFiled
2025Feb 10, 2026Showing above
2024Feb 11, 2025
2023Feb 13, 2024
2022Feb 14, 2023
2021Feb 15, 2022
2020Feb 18, 2021
2019Feb 27, 2020
2018Mar 1, 2019
2017Feb 15, 2018
2016Feb 21, 2017
2015Feb 18, 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.