4. Net Income Per Share

The calculation of basic and diluted net income per share is as follows.

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per-share amounts)

 

2025

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

618,179

 

 

$

660,315

 

 

$

675,860

 

Income (loss) from discontinued operations, net of tax

 

 

(35,539

)

 

 

(55,875

)

 

 

(72,741

)

Net income—basic and diluted

 

$

582,640

 

 

$

604,440

 

 

$

603,119

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding—basic

 

 

139,445

 

 

 

152,465

 

 

 

158,140

 

Dilutive effect of share-based compensation arrangements (1)

 

 

1,366

 

 

 

1,726

 

 

 

1,993

 

Adjusted average common shares outstanding—diluted

 

 

140,811

 

 

 

154,191

 

 

 

160,133

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

4.43

 

 

$

4.33

 

 

$

4.27

 

Income (loss) from discontinued operations, net of tax

 

 

(0.25

)

 

 

(0.37

)

 

 

(0.46

)

Basic net income per share

 

$

4.18

 

 

$

3.96

 

 

$

3.81

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

4.39

 

 

$

4.28

 

 

$

4.22

 

Income (loss) from discontinued operations, net of tax

 

 

(0.25

)

 

 

(0.36

)

 

 

(0.45

)

Diluted net income per share

 

$

4.14

 

 

$

3.92

 

 

$

3.77

 

 

(1)
The following number of shares of our common stock equivalents issued under our share-based compensation arrangements are not included in the calculation of diluted net income per share because their effect would be anti-dilutive.

 

 

 

Years Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

Shares of common stock equivalents

 

 

 

 

 

11

 

 

 

14

 

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2021Feb 25, 2022

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.