v3.26.1
Earnings Per Share
6 Months Ended
Jun. 30, 2026
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The following is a reconciliation of the shares used in calculating basic and diluted net earnings per share:
Three Months EndedSix Months Ended
 June 30,June 30,
2026202520262025
Net income attributable to Xylem (in millions)$263 $226 $456 $395 
Shares (in thousands):
Weighted average common shares outstanding236,276 243,370 239,518 243,227 
Add: Participating securities (a)19 27 16 24 
Weighted average common shares outstanding — Basic236,295 243,397 239,534 243,251 
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options238 314 269 333 
Dilutive effect of restricted stock units and performance share units41 148 164 236 
Weighted average common shares outstanding — Diluted236,574 243,859 239,967 243,820 
Basic earnings per share$1.11 $0.93 $1.90 $1.62 
Diluted earnings per share$1.11 $0.93 $1.90 $1.62 
(a)Restricted stock units containing rights to non-forfeitable dividends that participate in undistributed earnings with common stockholders are considered participating securities for purposes of computing earnings per share.
(b)Incremental shares from stock options, restricted stock units and performance share units are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock units and performance share units, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance or market conditions at the end of the reporting period. See Note 15, "Share-Based Compensation Plans," to the condensed consolidated financial statements for further detail on the performance share units.
Three Months EndedSix Months Ended
 June 30,June 30,
(in thousands)2026202520262025
Stock options1,145 1,006 1,033 936 
Restricted stock units451 442 379 390 
Performance share units12 181 34 207