CISCO SYSTEMS, INC. Earnings Per Share Disclosure
| Years Ended | July 26, 2025 | July 27, 2024 | July 29, 2023 | ||||||||||||||
| Net income | $ | 10,180 | $ | 10,320 | $ | 12,613 | |||||||||||
| Weighted-average shares—basic | 3,976 | 4,043 | 4,093 | ||||||||||||||
| Effect of dilutive potential common shares | 22 | 19 | 12 | ||||||||||||||
| Weighted-average shares—diluted | 3,998 | 4,062 | 4,105 | ||||||||||||||
| Net income per share—basic | $ | 2.56 | $ | 2.55 | $ | 3.08 | |||||||||||
| Net income per share—diluted | $ | 2.55 | $ | 2.54 | $ | 3.07 | |||||||||||
| Antidilutive employee share-based awards, excluded | 78 | 82 | 86 | ||||||||||||||
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.