Annual report [Section 13 and 15(d), not S-K Item 405]

EARNINGS PER SHARE

v3.25.4
EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
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