Earnings per Share:

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and therefore are included in PMI’s earnings per share calculation pursuant to the two-class method.

Basic and diluted earnings per share (“EPS”) were calculated using the following:
For the Years Ended December 31,
(in millions)
202520242023
Net earnings attributable to PMI$11,348 $7,057 $7,813 
Less distributed and undistributed earnings attributable to share-based payment awards (1)
32 23 22 
Net earnings for basic and diluted EPS$11,316 $7,034 $7,791 
Weighted-average shares for basic EPS1,556 1,554 1,552 
Plus contingently issuable performance stock units (PSUs) (1)
2 
Weighted-average shares for diluted EPS1,558 1,556 1,553 
(1) Including rounding adjustment
For the 2025, 2024 and 2023 computations, there were no antidilutive stock awards.

Historical Timeline

Fiscal YearFiled
2025Feb 6, 2026Showing above
2024Feb 6, 2025
2023Feb 8, 2024
2022Feb 10, 2023
2021Feb 11, 2022
2020Feb 9, 2021
2019Feb 7, 2020
2018Feb 7, 2019
2017Feb 13, 2018
2016Feb 14, 2017
2015Feb 17, 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.