Note 10. Earnings Per Share
Basic net earnings per share (EPS) is computed by dividing net earnings by the weighted average number of outstanding common shares. Diluted net EPS is computed by dividing net earnings by the weighted average number of outstanding common shares and common share equivalents relating to stock options and other stock incentive plans.
Basic and diluted net EPS calculations were as follows (in millions, except per share amounts):
Year Ended July 31,
202520242023
Net earnings$367.0 $414.0 $358.8 
Weighted average common shares outstanding
Weighted average common shares – basic118.7 120.7 121.8 
Dilutive impact of stock-based awards1.7 1.9 1.8 
Weighted average common shares – diluted120.4 122.6 123.6 
Net EPS – basic$3.09 $3.43 $2.95 
Net EPS – diluted$3.05 $3.38 $2.90 
Stock options excluded from net EPS calculation0.70.00.0

Historical Timeline

Fiscal YearFiled
2025Sep 26, 2025Showing above
2024Sep 27, 2024
2023Sep 22, 2023
2022Sep 23, 2022
2021Sep 24, 2021
2020Sep 25, 2020
2019Sep 27, 2019
2018Oct 1, 2018
2017Sep 22, 2017
2016Sep 23, 2016

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.