NORFOLK SOUTHERN CORPNSC

NORFOLK SOUTHERN CORP Earnings Per Share Disclosure

10-KFiled Feb 9, 20262 min read
Earnings Per Share
 
The following table sets forth the calculation of basic and diluted earnings per share:
 
 BasicDiluted
 202520242023202520242023
 ($ in millions except per share amounts, shares in millions)
Net income$2,873 $2,622 $1,827 $2,873 $2,622 $1,827 
Dividend equivalent payments(3)(3)(3)(1)(2)(3)
Income available to common stockholders$2,870 $2,619 $1,824 $2,872 $2,620 $1,824 
Weighted-average shares outstanding225.0 226.1 226.9 225.0 226.1 226.9 
Dilutive effect of outstanding options      
and share-settled awards   0.3 0.3 0.5 
Adjusted weighted-average shares outstanding   225.3 226.4 227.4 
Earnings per share$12.76 $11.58 $8.04 $12.75 $11.57 $8.02 
In each year, dividend equivalent payments were made to certain holders of stock options and RSUs.  For purposes of computing basic earnings per share, dividend equivalent payments made to holders of stock options and RSUs were deducted from net income to determine income available to common stockholders.  For purposes of computing diluted earnings per share, we evaluate on a grant-by-grant basis those stock options and RSUs receiving dividend equivalent payments under the two-class and treasury stock methods to determine which method is more dilutive for each grant.  For those grants for which the two-class method was more dilutive, net income was reduced by dividend equivalent payments to determine income available to common stockholders. The dilution calculations exclude options having exercise prices exceeding the average market price of Common Stock as follows: 0.1 million for the years ended December 31, 2025, 2024, and 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 9, 2026Showing above
2024Feb 10, 2025
2023Feb 5, 2024
2022Feb 3, 2023
2021Feb 4, 2022
2020Feb 4, 2021
2019Feb 6, 2020
2018Feb 8, 2019
2017Feb 5, 2018
2016Feb 6, 2017
2015Feb 8, 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.

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