EARNINGS PER SHARE
The following table presents the computation of basic and diluted earnings per common share.
 Year ended September 30,
$ in millions, except per share amounts202520242023
Income for basic earnings per common share:
Net income available to common shareholders$2,130 $2,063 $1,733 
Less allocation of earnings and dividends to participating securities
(3)(4)(5)
Net income available to common shareholders after participating securities$2,127 $2,059 $1,728 
Income for diluted earnings per common share:
   
Net income available to common shareholders$2,130 $2,063 $1,733 
Less allocation of earnings and dividends to participating securities
(3)(4)(5)
Net income available to common shareholders after participating securities$2,127 $2,059 $1,728 
Common shares:   
Average common shares in basic computation
202.0 207.1 211.8 
Dilutive effect of outstanding stock options and certain RSUs
4.6 5.2 5.1 
Average common and common equivalent shares used in diluted computation206.6 212.3 216.9 
Earnings per common share:   
Basic$10.53 $9.94 $8.16 
Diluted$10.30 $9.70 $7.97 
Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive
0.1 0.1 0.5 

The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the year to participating securities, consisting of RSAs and certain RSUs, plus an allocation of undistributed earnings to such participating securities. Participating securities and related dividends paid on these participating securities were insignificant for the years ended September 30, 2025, 2024 and 2023. Undistributed earnings are allocated to participating securities based upon their right to share in earnings as if all earnings for the period had been distributed.

Historical Timeline

Fiscal YearFiled
2025Nov 25, 2025Showing above
2024Nov 26, 2024
2023Nov 21, 2023
2022Nov 22, 2022
2021Nov 23, 2021
2020Nov 24, 2020
2019Nov 26, 2019
2018Nov 21, 2018
2017Nov 22, 2017
2016Nov 22, 2016
2015Nov 25, 2015

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.