Earnings per Share
(dollars in millions, except per share amounts; shares in millions)20252024
2023
Net income attributable to common shareholders$1,384 $1,645 $1,406 
Basic weighted average number of shares outstanding392.8 401.7 411.4 
Stock awards and equity units (share equivalent) 2.1 2.7 3.2 
Diluted weighted average number of shares outstanding394.9 404.4 414.6 
Earnings Per Share of Common Stock:
Basic$3.52 $4.10 $3.42 
Diluted$3.50 $4.07 $3.39 

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock appreciation rights and stock options, when the average market price of the Common Stock is lower than the exercise price of the related stock awards during the period because the effect would be anti-dilutive. In addition, the computation of diluted earnings per share excludes the effect of the potential exercise of stock awards when the awards' assumed proceeds exceed the average market price of the common shares during the period. Lastly, the computations of diluted earnings per share include outstanding awards granted prior to the Separation from UTC and converted upon the Separation, in accordance with the Employee Matters Agreement. There were 0.4 million, 0.7 million and 1.0 million of anti-dilutive stock awards excluded from the computation for 2025, 2024 and 2023 respectively.

The impact of redeemable noncontrolling interest to Net income attributable to common shareholders was immaterial for 2025, 2024, and 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 5, 2026Showing above
2024Feb 4, 2025
2023Feb 2, 2024
2022Feb 3, 2023
2021Feb 4, 2022
2020Feb 5, 2021

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.