EARNINGS PER COMMON SHARE
Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the assumed conversion of all dilutive securities, including, when applicable, stock options, restricted stock units, performance stock units, and performance stock options.
The following table presents the computation of basic and diluted EPS:
Years Ended
(in thousands, except per share data)
December 31,
2025
December 31,
2024
December 31,
2023
Net income$1,202,305 $1,109,128 $1,148,592 
Basic weighted average common shares outstanding76,504 78,710 79,462 
Effect of dilutive securities:132 250 381 
Diluted weighted average common shares outstanding76,636 78,960 79,843 
Earnings per common share:
Basic$15.72 $14.09 $14.45 
Diluted$15.69 $14.05 $14.39 

Historical Timeline

Fiscal YearFiled
2025Feb 6, 2026Showing above
2022Feb 10, 2023

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.