The company uses the two-class method for basic EPS and the if-converted method for diluted EPS. This reflects the Series G preferred stock’s status as participating securities until their 1:1 conversion into 4.6 million Class A common shares on March 5, 2026. Under the two-class method, undistributed or overdistributed earnings are allocated to common stock and participating securities according to their respective rights in undistributed or overdistributed earnings, as if all the earnings for the period had been distributed. Basic earnings per common share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Net income attributable to common shareholders is reduced for preferred stock dividends earned during the period. Preferred stock also receives a proportionate allocation of undistributed or overdistributed earnings for the period because the shares of the Series G preferred stock have a contractual obligation to share in profits and losses of the company. Diluted earnings per share is computed using the if-converted method for the Series G preferred stock which assumes the conversion of all preferred shares into common shares at the beginning of the period. Accordingly, net income attributable to common shareholders is adjusted to add back the dividends and undistributed or overdistributed earnings previously allocated to the preferred stock, and the weighted average number of common shares outstanding is increased by the number of shares that would have been issued upon conversion of the preferred stock as of the beginning of the period plus potentially dilutive common shares. Anti-dilutive stock awards were as follows for the periods presented:


	Quarter Ended March 31,
		2026		2025
Net Income (in millions)		$	1,154.3	$	956.2
Less: preferred stock dividends		—		(5.7)
Add: overdistributed earnings allocated to preferred stock		13.7		—
Less: undistributed earnings allocated to preferred stock		—		(6.3)
Net Income Attributable to Common Shareholders of CME Group - Basic		$	1,168.0	$	944.2
Less: overdistributed earnings allocated to preferred stock		(13.7)		—
Net Income Attributable to Common Shareholders of CME Group - Diluted		$	1,154.3	$	944.2

Weighted Average Number of Common Shares (in thousands):
Basic		359,318		359,613
Effect of restricted stock and performance shares		682		614
Effect of convertible preferred shares		3,208		—
Diluted		363,208		360,227
Earnings per Common Share Attributable to Common Shareholders of CME Group:
Basic		$	3.25	$	2.63
Diluted		3.18		2.62