EARNINGS PER SHARE
The following table summarizes the computations of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans including stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and ESPP purchase rights using the treasury stock method.
 Year Ended March 31,
(In millions, except per share amounts)202620252024
Net income$887 $1,121 $1,273 
Shares used to compute earnings per share:
Weighted-average common stock outstanding — basic250 262 270 
Dilutive potential common shares related to stock award plans
Weighted-average common stock outstanding — diluted253 264 272 
Earnings per share:
Basic$3.55 $4.28 $4.71 
Diluted$3.51 $4.25 $4.68 
Certain restricted stock units, market-based restricted stock units and performance-based restricted stock units were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. For the fiscal years ended March 31, 2026, 2025 and 2024, one million such shares were excluded.

Historical Timeline

Fiscal YearFiled
2026May 11, 2026Showing above
2025May 13, 2025
2024May 22, 2024
2023May 24, 2023
2022May 25, 2022
2021May 26, 2021
2020May 20, 2020
2019May 24, 2019
2018May 23, 2018
2017May 24, 2017
2016May 27, 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.