Earnings per Share

12 Months Ended

Dec. 31, 2025

Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are calculated to reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock.

Basic and diluted earnings per common share are calculated as follows:


(In millions, except per share amounts)	2025		2024		2023
Earnings (loss) per share — basic:
Goodyear net income (loss)	$	(1,721)	$	46	$	(729)
Weighted average shares outstanding	288		287		285
Earnings (loss) per common share — basic	$	(5.99)	$	0.16	$	(2.56)

Earnings (loss) per share — diluted:
Goodyear net income (loss)	$	(1,721)	$	46	$	(729)
Weighted average shares outstanding	288		287		285
Dilutive effect of stock options and other dilutive securities	—		1		—
Weighted average shares outstanding — diluted	288		288		285
Earnings (loss) per common share — diluted	$	(5.99)	$	0.16	$	(2.56)

Weighted average shares outstanding — diluted for 2025 excludes approximately 3 million equivalent shares related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options). There were approximately 1 million equivalent shares and 2 million equivalent shares related to underwater options for 2024 and 2023, respectively. Additionally, weighted average shares outstanding — diluted for 2025 also excludes approximately 2 million equivalent shares, related primarily to options with exercise prices less than the average market price of our common shares (i.e., "in-the-money" options) and unvested restricted stock units, as their inclusion would have been anti-dilutive due to the Goodyear net loss. There were approximately 2 million equivalent shares related to in-the-money options and unvested restricted stock units for 2023.