Earnings per Share
The calculations of earnings per share (shares in millions) are as follows:
Years Ended December 31202520242023
Net Income Attributable to Merck & Co., Inc.$18,254 $17,117 $365 
Average common shares outstanding2,502 2,532 2,537 
Common shares issuable (1)
5 10 
Average common shares outstanding assuming dilution2,507 2,541 2,547 
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders$7.30 $6.76 $0.14 
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders$7.28 $6.74 $0.14 
(1)     Issuable primarily under share-based compensation plans.
In 2025, 2024 and 2023, 11 million, 6 million and 5 million, respectively, of common shares issuable under share-based compensation plans were excluded from the computation of earnings per common share assuming dilution because the effect would have been antidilutive.

Historical Timeline

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