Earnings Per Share
We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common
stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 9 to the consolidated financial statements, when the impact is dilutive.
Basic and diluted earnings per share for the fiscal years ended September 30 are calculated as follows:
202520242023
 (In thousands, except per share data)
Basic Earnings Per Share
Net income$1,198,754 $1,042,895 $885,862 
Less: Income allocated to participating securities487 553 542 
Net income available to common shareholders$1,198,267 $1,042,342 $885,320 
Basic weighted average shares outstanding158,943 152,508 145,121 
Net income per share — Basic$7.54 $6.83 $6.10 
Diluted Earnings Per Share
Net income available to common shareholders$1,198,267 $1,042,342 $885,320 
Effect of dilutive shares— — — 
Net income available to common shareholders$1,198,267 $1,042,342 $885,320 
Basic weighted average shares outstanding158,943 152,508 145,121 
Dilutive shares1,630 158 45 
Diluted weighted average shares outstanding160,573 152,666 145,166 
Net income per share — Diluted$7.46 $6.83 $6.10 

Historical Timeline

Fiscal YearFiled
2025Nov 14, 2025Showing above
2024Nov 18, 2024
2023Nov 14, 2023
2022Nov 14, 2022
2021Nov 12, 2021
2020Nov 13, 2020
2019Nov 12, 2019
2018Nov 13, 2018
2017Nov 13, 2017
2016Nov 14, 2016
2015Nov 6, 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.