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To extract the last name from a list of names in Excel, use the TEXTAFTER function. The formula starts with `=TEXTAFTER(`, where the first argument is the cell containing the name. The second argument is the delimiter, which is specified as a space (`" "`). Then, the instance number is set to -1 to target the last name. After constructing the formula, copy it down to the cells below to apply it to the entire list.