ARROW ELECTRONICS, INC. Earnings Per Share Disclosure
11. Net Income Per Share
Basic net income per share is computed by dividing net income attributable to shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. The dilutive effect of equity awards is calculated using the treasury stock method.
The following table presents the computation of net income per share on a basic and diluted basis for the years ended December 31:
(thousands except per share data) | | 2025 | | 2024 | | 2023 | |||
Net income attributable to shareholders | $ | 571,266 | $ | 392,074 | $ | 903,505 | |||
Weighted-average shares outstanding - basic |
| 51,804 |
| 53,282 |
| 56,359 | |||
Net effect of various dilutive stock-based compensation awards |
| 451 |
| 515 |
| 676 | |||
Weighted-average shares outstanding - diluted |
| 52,255 |
| 53,797 |
| 57,035 | |||
Net income per share: |
| |
| |
| | |||
Basic | $ | 11.03 | $ | 7.36 | $ | 16.03 | |||
Diluted (a) | $ | 10.93 | $ | 7.29 | $ | 15.84 | |||
(a) Equity awards excluded from diluted net income per share as their effect would have been anti-dilutive | 32 | 16 | 32 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 13, 2024 | |
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.