Earnings Per Share of Common Stock

9 Months Ended

Sep. 30, 2025

Earnings Per Share of Common Stock:

The following tables provide the computation of basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2025 and 2024.


(Dollars in millions except per share amounts)
For the three months ended September 30:	2025		2024
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period	933,861,791		923,577,526
Add — Incremental shares under stock-based compensation plans	12,486,696		—
Add — Incremental shares associated with contingently issuable shares	2,582,540		—
Number of shares on which diluted earnings per share is calculated	948,931,026		923,577,526

Income/(loss) from continuing operations	$	1,744	$	(317)
Income/(loss) from discontinued operations, net of tax	0		(13)
Net income/(loss) on which basic and dilutive earnings per share is calculated	$	1,744	$	(330)

Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	1.84	$	(0.34)
Discontinued operations	0.00		(0.01)
Total	$	1.84	$	(0.36)
Basic
Continuing operations	$	1.87	$	(0.34)
Discontinued operations	0.00		(0.01)
Total	$	1.87	$	(0.36)

Stock options to purchase 1,803,688 shares and 9,189 shares were outstanding as of September 30, 2025 and 2024, respectively, but were not included in the computation of diluted earnings per share because the exercise price of the options during the respective period was greater than the average market price of the common shares, and therefore, the effect would have been antidilutive.

Due to the net loss for the three months ended September 30, 2024, otherwise dilutive potential shares of common stock under stock-based compensation plans and contingently issuable shares of 12,348,507 and 2,520,759, respectively, have been excluded from the computation of diluted earnings/(loss) per share for that period, as the effect would have been antidilutive.


(Dollars in millions except per share amounts)
For the nine months ended September 30:	2025		2024
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period	930,891,930		920,347,948
Add — Incremental shares under stock-based compensation plans	14,132,523		12,829,572
Add — Incremental shares associated with contingently issuable shares	2,395,938		2,247,712
Number of shares on which diluted earnings per share is calculated	947,420,391		935,425,233

Income from continuing operations	$	4,992	$	3,088
Income from discontinued operations, net of tax	1		21
Net income on which basic and dilutive earnings per share is calculated	$	4,993	$	3,109

Earnings per share of common stock:
Assuming dilution
Continuing operations	$	5.27	$	3.30
Discontinued operations	0.00		0.02
Total	$	5.27	$	3.32
Basic
Continuing operations	$	5.36	$	3.36
Discontinued operations	0.00		0.02
Total	$	5.36	$	3.38

Stock options to purchase 1,838,436 shares and 1,018,714 shares (average of first, second and third quarter share amounts) were outstanding as of September 30, 2025 and 2024, respectively, but were not included in the computation of diluted earnings per share because the exercise price of the options during the respective period was greater than the average market price of the common shares, and therefore, the effect would have been antidilutive.