Earnings Per Share
The following table provides a reconciliation between basic and diluted earnings per share for the years ended December 31:
Millions, except per share amounts202520242023
Net income$7,138 $6,747 $6,379 
Weighted-average number of shares outstanding:
Basic595.0 607.6 609.2 
Dilutive effect of stock options0.3 0.4 0.4 
Dilutive effect of retention awards0.6 0.6 0.6 
Diluted595.9 608.6 610.2 
Earnings per share - basic$12.00 $11.10 $10.47 
Earnings per share - diluted$11.98 $11.09 $10.45 
Diluted earnings per share was computed using the treasury stock method for both stock options and retention awards. Common stock options totaling 1.0 million, 0.6 million, and 0.9 million for 2025, 2024, and 2023, respectively, were excluded from the computation of diluted earnings per share because the exercise prices of these stock options exceeded the average market price of our common stock for the respective periods, and the effect of their inclusion would be anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 6, 2026Showing above
2024Feb 7, 2025
2023Feb 9, 2024
2022Feb 10, 2023
2021Feb 4, 2022
2020Feb 5, 2021
2019Feb 7, 2020
2018Feb 8, 2019
2017Feb 9, 2018
2016Feb 3, 2017
2015Feb 5, 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.