Basic earnings per share is calculated using the two-class method, which allocates all earnings (distributed and undistributed) to common stock and participating securities. FedEx grants restricted stock under its stock-based compensation programs; these shares receive nonforfeitable dividends during vesting, making them participating securities and a separate class in basic earnings per share.

Diluted earnings per share reflects the potential impact of contingently issuable shares, including awards requiring future service. It is computed under both the two-class and treasury stock methods, with the more dilutive amount reported. For all periods shown, the two-class method produced the more dilutive result.

The calculation of basic and diluted earnings per share for the years ended May 31 was as follows (in millions, except per share amounts):


	2026		2025		2024
Numerator:
Net earnings allocable to common shares(1)	$	4,426	$	4,087	$	4,325
Denominator:
Weighted-average common shares for basic earnings per common share	237		241		248
Dilutive effect of stock options and RSUs	2		2		3
Weighted-average common shares for diluted earnings per common share	239		243		251

Basic earnings per common share	$	18.71	$	16.96	$	17.41
Diluted earnings per common share	$	18.55	$	16.81	$	17.21

Anti-dilutive options excluded from diluted earnings per common share	4		5		6

(1)Net earnings available to participating securities were $7 million in 2026, $5 million in 2025, and $6 million in 2024.