Earnings Per Share
Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of restricted stock units and employees’ stock purchase plan shares) outstanding during the period. Our net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings per share due to our non-complex capital structure.
 
Fiscal Year202520242023
 (In millions, except per share amounts)
Numerator:
Net income$6,998 $7,177 $6,856 
Denominator:
Weighted average common shares outstanding804 827 840 
Effect of weighted dilutive restricted stock units and employees’ stock purchase plan shares
Denominator for diluted earnings per share808 834 845 
Basic earnings per share$8.71 $8.68 $8.16 
Diluted earnings per share$8.66 $8.61 $8.11 
Potentially weighted dilutive securities— — — 

Excluded from the calculation of diluted earnings per share are securities attributable to outstanding restricted stock units where the combined exercise price and average unamortized fair value are greater than the average market price of our common stock, and therefore their inclusion would be anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Dec 12, 2025Showing above
2024Dec 13, 2024
2023Dec 15, 2023
2022Dec 16, 2022
2021Dec 17, 2021
2020Dec 11, 2020
2019Dec 13, 2019
2018Dec 13, 2018
2017Dec 15, 2017
2016Dec 15, 2016
2015Dec 9, 2015

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.