21. Earnings Per Share

The computations of basic and diluted net earnings per share are as follows (in millions, except per share data):

 

Year Ended December 31,

 

2025

 

 

2024

 

 

2023

 

Basic net earnings per share:

 

 

 

 

 

 

 

 

 

Basic net earnings

 

$

1,744

 

 

$

2,027

 

 

$

4,525

 

Earnings allocated to participating securities

 

 

(7

)

 

 

(9

)

 

 

(17

)

Net earnings available to common stockholders

 

$

1,737

 

 

$

2,018

 

 

$

4,508

 

Basic average shares outstanding

 

 

230.7

 

 

 

238.3

 

 

 

249.8

 

Basic net earnings per share

 

$

7.53

 

 

$

8.47

 

 

$

18.05

 

Diluted net earnings per share:

 

 

 

 

 

 

 

 

 

Diluted net earnings

 

$

1,744

 

 

$

2,027

 

 

$

4,525

 

Earnings allocated to participating securities

 

 

(7

)

 

 

(9

)

 

 

(17

)

Net earnings available to common stockholders

 

$

1,737

 

 

$

2,018

 

 

$

4,508

 

Diluted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic average shares outstanding

 

 

230.7

 

 

 

238.3

 

 

 

249.8

 

Dilutive effect of stock options and other

 

 

0.3

 

 

 

0.2

 

 

 

0.6

 

 

 

 

231.0

 

 

 

238.5

 

 

 

250.4

 

Diluted net earnings per share

 

$

7.52

 

 

$

8.46

 

 

$

18.00

 

 

The following stock options were excluded from the computation of diluted net earnings per share because their effect would have been anti-dilutive (shares in thousands):

 

Year Ended December 31,

 

2025

 

 

2024

 

 

2023

 

Anti-dilutive stock options:

 

 

 

 

 

 

 

 

 

Weighted-average shares

 

 

164

 

 

 

35

 

 

 

 

Weighted-average exercise price

 

$

147.70

 

 

$

168.85

 

 

$

 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 27, 2025
2023Feb 27, 2024

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.