Earnings (Loss) Per Share
Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include unvested stock-based compensation awards.
The computations of basic and diluted earnings per share were as follows:
Years Ended December 31,
(In millions, except per share data)202520242023
Net income from continuing operations$316 $387 $192 
Net loss from discontinued operations— — (3)
Net income$316 $387 $189 
Basic weighted-average common shares118 116 116 
Dilutive effect of stock-based awards
Diluted weighted-average common shares119 120 118 
Basic earnings from continuing operations per share$2.69 $3.33 $1.66 
Basic loss from discontinued operations per share— — (0.02)
Basic earnings per share$2.69 $3.33 $1.64 
Diluted earnings from continuing operations per share$2.64 $3.23 $1.62 
Diluted loss from discontinued operations per share— — (0.02)
Diluted earnings per share$2.64 $3.23 $1.60 

Historical Timeline

Fiscal YearFiled
2025Feb 5, 2026Showing above
2024Feb 7, 2025
2021Feb 16, 2022
2020Feb 12, 2021
2019Feb 10, 2020
2018Feb 14, 2019
2015Feb 29, 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.