Alphabet Inc.GOOGL
Alphabet Inc. Earnings Per Share Disclosure
Net Income Per Share
(1) Not applicable for consolidated net income per share.
We compute net income per share of Class A, Class B, and Class C stock using the two-class method. Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of RSUs and other contingently issuable shares. The dilutive effect of outstanding RSUs and other contingently issuable shares is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A stock assumes the conversion of Class B stock, while the diluted net income per share of Class B stock does not assume the conversion of those shares.
In accordance with our certificate of incorporation, the rights, including the liquidation and dividend rights, of the holders of our Class A, Class B, and Class C stock are identical, except with respect to voting. Furthermore, there are a number of safeguards built into our certificate of incorporation, as well as Delaware law, which preclude our Board of Directors from declaring or paying unequal per share dividends on our Class A, Class B, and Class C stock. Specifically, Delaware law provides that amendments to our certificate of incorporation which would have the effect of adversely altering the rights, powers, or preferences of a given class of stock must be approved by the class of stock adversely affected by the proposed amendment. In addition, our certificate of incorporation provides that before any such amendment may be put to a stockholder vote, it must be approved by the unanimous consent of our Board of Directors.
Immaterial differences in net income per share across our Class A, Class B, and Class C shares may arise due to the allocation of distributed earnings, which is based on the holders as of the record date, compared with the allocation of undistributed earnings and number of shares, which is based on the weighted average shares outstanding over the periods.
The following tables set forth the computation of basic and diluted net income per share of Class A, Class B, and Class C stock (in millions, except per share amounts):
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Class A | Class B | Class C | Consolidated | ||||||||||||||||||||
| Basic net income per share: | |||||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Allocation of distributed earnings (cash dividends paid) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
| Allocation of undistributed earnings | 34,601 | 5,124 | 34,070 | 73,795 | |||||||||||||||||||
| Net income | $ | 34,601 | $ | 5,124 | $ | 34,070 | $ | 73,795 | |||||||||||||||
| Denominator | |||||||||||||||||||||||
| Number of shares used in per share computation | 5,922 | 877 | 5,831 | 12,630 | |||||||||||||||||||
| Basic net income per share | $ | 5.84 | $ | 5.84 | $ | 5.84 | $ | 5.84 | |||||||||||||||
| Diluted net income per share: | |||||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Allocation of total earnings for basic computation | $ | 34,601 | $ | 5,124 | $ | 34,070 | $ | 73,795 | |||||||||||||||
| Reallocation of total earnings as a result of conversion of Class B to Class A shares | 5,124 | 0 | 0 | _(1) | |||||||||||||||||||
| Reallocation of undistributed earnings | (287) | (37) | 287 | _(1) | |||||||||||||||||||
| Net income | $ | 39,438 | $ | 5,087 | $ | 34,357 | $ | 73,795 | |||||||||||||||
| Denominator | |||||||||||||||||||||||
| Number of shares used in basic computation | 5,922 | 877 | 5,831 | 12,630 | |||||||||||||||||||
| Weighted-average effect of dilutive securities | |||||||||||||||||||||||
| Add: | |||||||||||||||||||||||
| Conversion of Class B to Class A shares outstanding | 877 | 0 | 0 | _(1) | |||||||||||||||||||
| Restricted stock units and other contingently issuable shares | 0 | 0 | 92 | 92 | |||||||||||||||||||
| Number of shares used in per share computation | 6,799 | 877 | 5,923 | 12,722 | |||||||||||||||||||
| Diluted net income per share | $ | 5.80 | $ | 5.80 | $ | 5.80 | $ | 5.80 | |||||||||||||||
(1) Not applicable for consolidated net income per share.
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Class A | Class B | Class C | Consolidated | ||||||||||||||||||||
| Basic net income per share: | |||||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Allocation of distributed earnings (cash dividends paid) | $ | 3,509 | $ | 519 | $ | 3,335 | $ | 7,363 | |||||||||||||||
| Allocation of undistributed earnings | 44,085 | 6,520 | 42,150 | 92,755 | |||||||||||||||||||
| Net income | $ | 47,594 | $ | 7,039 | $ | 45,485 | $ | 100,118 | |||||||||||||||
| Denominator | |||||||||||||||||||||||
| Number of shares used in per share computation | 5,855 | 866 | 5,598 | 12,319 | |||||||||||||||||||
| Basic net income per share | $ | 8.13 | $ | 8.13 | $ | 8.13 | $ | 8.13 | |||||||||||||||
| Diluted net income per share: | |||||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Allocation of total earnings for basic computation | $ | 47,594 | $ | 7,039 | $ | 45,485 | $ | 100,118 | |||||||||||||||
| Reallocation of total earnings as a result of conversion of Class B to Class A shares | 7,039 | 0 | 0 | _(1) | |||||||||||||||||||
| Reallocation of undistributed earnings | (520) | (67) | 520 | _(1) | |||||||||||||||||||
| Net income | $ | 54,113 | $ | 6,972 | $ | 46,005 | $ | 100,118 | |||||||||||||||
| Denominator | |||||||||||||||||||||||
| Number of shares used in basic computation | 5,855 | 866 | 5,598 | 12,319 | |||||||||||||||||||
| Weighted-average effect of dilutive securities | |||||||||||||||||||||||
| Add: | |||||||||||||||||||||||
| Conversion of Class B to Class A shares outstanding | 866 | 0 | 0 | _(1) | |||||||||||||||||||
| Restricted stock units and other contingently issuable shares | 0 | 0 | 128 | 128 | |||||||||||||||||||
| Number of shares used in per share computation | 6,721 | 866 | 5,726 | 12,447 | |||||||||||||||||||
| Diluted net income per share | $ | 8.05 | $ | 8.05 | $ | 8.03 | $ | 8.04 | |||||||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Class A | Class B | Class C | Consolidated | ||||||||||||||||||||
| Basic net income per share: | |||||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Allocation of distributed earnings (cash dividends paid) | $ | 4,832 | $ | 703 | $ | 4,514 | $ | 10,049 | |||||||||||||||
| Allocation of undistributed earnings | 58,682 | 8,557 | 54,882 | 122,121 | |||||||||||||||||||
| Net income | $ | 63,514 | $ | 9,260 | $ | 59,396 | $ | 132,170 | |||||||||||||||
| Denominator | |||||||||||||||||||||||
| Number of shares used in per share computation | 5,822 | 849 | 5,445 | 12,116 | |||||||||||||||||||
| Basic net income per share | $ | 10.91 | $ | 10.91 | $ | 10.91 | $ | 10.91 | |||||||||||||||
| Diluted net income per share: | |||||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Allocation of total earnings for basic computation | $ | 63,514 | $ | 9,260 | $ | 59,396 | $ | 132,170 | |||||||||||||||
| Reallocation of total earnings as a result of conversion of Class B to Class A shares | 9,260 | 0 | 0 | _(1) | |||||||||||||||||||
| Reallocation of undistributed earnings | (627) | (79) | 627 | _(1) | |||||||||||||||||||
| Net income | $ | 72,147 | $ | 9,181 | $ | 60,023 | $ | 132,170 | |||||||||||||||
| Denominator | |||||||||||||||||||||||
| Number of shares used in basic computation | 5,822 | 849 | 5,445 | 12,116 | |||||||||||||||||||
| Weighted-average effect of dilutive securities | |||||||||||||||||||||||
| Add: | |||||||||||||||||||||||
| Conversion of Class B to Class A shares outstanding | 849 | 0 | 0 | _(1) | |||||||||||||||||||
| Restricted stock units and other contingently issuable shares | 0 | 0 | 114 | 114 | |||||||||||||||||||
| Number of shares used in per share computation | 6,671 | 849 | 5,559 | 12,230 | |||||||||||||||||||
| Diluted net income per share | $ | 10.82 | $ | 10.81 | $ | 10.80 | $ | 10.81 | |||||||||||||||
(1)Not applicable for consolidated net income per share.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 5, 2026 | Showing above |
| 2024 | Feb 5, 2025 | |
| 2022 | Feb 3, 2023 | |
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.