For a topological dynamical system we characterize the decomposition of the state space induced by the fixed space of the corresponding Koopman operator. For this purpose, we introduce a hierarchy of generalized orbits and obtain the finest decomposition of the state space into absolutely Lyapunov stable sets. Analogously to the measure-preserving case, this yields that the system is topologically ergodic if and only if the fixed space of its Koopman operator is one-dimensional.