Earnings Per Share
Basic earnings per share are computed using the weighted-average number of common shares outstanding during the year. Diluted earnings per share are computed using the weighted-average number of common shares and common share equivalents outstanding during the year. Common share equivalents represent the dilutive effect of outstanding equity-based awards. The reconciliation of the numerator and denominator of basic and diluted earnings per share was as follows (shares in millions):
202520242023
Numerator:
Net income attributable to common shareholders$3,531 $2,844 $2,083 
Denominator:
Basic - weighted-average common shares128.3 128.5 128.4 
Dilutive effect of equity-based awards1.9 1.7 1.5 
Diluted - weighted-average common shares130.2 130.2 129.9 
Basic earnings per share(1)
$27.52 $22.13 $16.23 
Diluted earnings per share(1)
$27.12 $21.84 $16.04 
(1) Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated using unrounded numbers.
For 2025, 2024 and 2023, 0.3 million, 0.4 million and 1.0 million common shares, respectively, subject to equity-based awards were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.
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Historical Timeline

Fiscal YearFiled
2025Aug 22, 2025Showing above
2024Aug 22, 2024
2023Aug 24, 2023
2022Aug 24, 2022
2021Aug 25, 2021
2020Aug 26, 2020
2019Aug 23, 2019
2018Aug 24, 2018
2017Aug 25, 2017
2016Aug 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.