EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2025

NOTE 19. EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

We calculate basic earnings per share (EPS) of common stock by dividing net income attributable to Cummins Inc. by the weighted-average number of common shares outstanding for the period. The calculation of diluted EPS assumes the issuance of common stock for all potentially dilutive share equivalents outstanding, which is calculated using the treasury-stock method for share-based awards. Following are the computations for basic and diluted earnings per share:


	Years ended December 31,
In millions, except per share amounts	2025		2024		2023
Net income attributable to Cummins Inc.	$	2,843	$	3,946	$	735

Weighted-average common shares outstanding
Basic	137.9		138.2		141.7
Dilutive effect of stock compensation awards	0.8		0.9		1.0
Diluted	138.7		139.1		142.7
Earnings per common share attributable to Cummins Inc.
Basic	$	20.62	$	28.55	$	5.19
Diluted	20.50		28.37		5.15

The weighted-average diluted common shares outstanding exclude the anti-dilutive effect of certain stock options. The options excluded from diluted earnings per share were as follows:


	Years ended December 31,
	2025	2024	2023
Options excluded	3,825	1,467	10,587

CUMMINS INC 10-K