Note 7. Earnings Per Share
Years Ended October 31,
(In millions, except for earnings per share) 202520242023
Net income$374.9 $392.3 $294.2 
Basic:
Weighted-average common shares199.1 198.9 197.9 
Basic earnings per share$1.88 $1.97 $1.49 
Diluted:
Weighted-average common shares199.1 198.9 197.9 
Effect of dilutive stock plans0.9 1.5 1.4 
Diluted weighted-average common shares200.0 200.4 199.3 
Diluted earnings per share$1.87 $1.96 $1.48 
The following table sets forth stock options to purchase our common stock and restricted stock units that were not included in the diluted earnings per share calculation because their effect would have been antidilutive for the periods presented:
Years Ended October 31,
(In thousands, except exercise prices) 202520242023
Stock option shares excluded1,477 827 1,244 
Exercise prices
$82.46 - $101.54
$82.46 - $101.54
$75.03 - $101.54
Restricted stock units excluded531 60 
Above tables have been adjusted to reflect the four-for-one stock split effected on February 16, 2024. Refer to Note 1. Organization and Significant Accounting Policies for further information

Historical Timeline

Fiscal YearFiled
2025Dec 5, 2025Showing above
2021Dec 10, 2021
2018Dec 21, 2018

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.