NET INCOME PER SHARE
Basic net income per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested stock-based awards and purchase rights. Diluted net income per share is based upon the weighted average common shares outstanding for the period plus dilutive potential common shares, including unvested restricted stock units, stock purchase rights and performance share awards using the treasury stock method. Performance share awards are included based on the number of shares that would be issued as if the end of the reporting period was the end of the performance period and the result was dilutive.
The following table sets forth the computation of basic and diluted net income per share for fiscal 2025, 2024 and 2023:
(in millions, except per share data)202520242023
Net income$7,130 $5,560 $5,428 
Shares used to compute basic net income per share426.2 447.1 457.1 
Dilutive potential common shares from stock plans and programs0.8 2.6 2.0 
Shares used to compute diluted net income per share427.0 449.7 459.1 
Basic net income per share$16.73 $12.43 $11.87 
Diluted net income per share$16.70 $12.36 $11.82 
Anti-dilutive potential common shares5.1 1.9 2.7 

Historical Timeline

Fiscal YearFiled
2025Jan 15, 2026Showing above
2024Jan 13, 2025
2023Jan 17, 2024
2022Jan 17, 2023
2021Jan 21, 2022
2018Jan 25, 2019

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.