UNITED PARCEL SERVICE INCUPS

UNITED PARCEL SERVICE INC Earnings Per Share Disclosure

10-KFiled Feb 17, 20261 min read
NOTE 16. EARNINGS PER SHARE
The earnings per share amounts are the same for class A and class B common shares as the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation.
The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share amounts): 
202520242023
Numerator:
Net income attributable to common shareowners$5,572 $5,782 $6,708 
Denominator:
Weighted-average shares848 854 855 
Vested portion of restricted shares1 1 4 
Denominator for basic earnings per share849 855 859 
Effect of Dilutive Securities:
Restricted performance units and contingent shares(1)
1 1 1 
Denominator for diluted earnings per share850 856 860 
Basic Earnings Per Share$6.56 $6.76 $7.81 
Diluted Earnings Per Share$6.56 $6.75 $7.80 
(1)     Contingent shares relate to MIP awards that may be settled in cash or class A common stock at the employees' election - see note 13.
Diluted earnings per share for 2025, 2024 and 2023 exclude the effect of 1.4, 0.5 and 0.3 million shares, respectively, of common stock that may be issued upon the exercise of employee stock options because such effect would be antidilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 21, 2023
2021Feb 22, 2022
2020Feb 22, 2021
2019Feb 20, 2020
2018Feb 21, 2019
2017Feb 21, 2018
2016Feb 21, 2017
2015Feb 25, 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.

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