Net Income Per Share
The following table summarizes the computations of basic and diluted net income per share for fiscal years 2025, 2024 and 2023 (in thousands except per share amounts):
 Years Ended March 31,
 202520242023
Net income $631,529 $612,143 $364,575 
Shares used in net income per share computation:
Weighted average shares outstanding - basic151,322 156,776 162,302 
Effect of potentially dilutive equivalent shares1,462 1,395 1,402 
Weighted average shares outstanding - diluted152,784 158,171 163,704 
   
Net income per share:
Basic$4.17 $3.90 $2.25 
Diluted$4.13 $3.87 $2.23 
Share equivalents attributable to outstanding stock options, restricted stock units and employee share purchase plans ("ESPP") totaling 0.7 million, 1.1 million, and 2.0 million shares during fiscal years 2025, 2024 and 2023, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. A small number of PSUs were not included in the dilutive net income per share calculation because all necessary conditions had not been satisfied by the end of the respective period, and those shares were not issuable if the end of the reporting period were the end of the performance contingency period.

Historical Timeline

Fiscal YearFiled
2025May 23, 2025Showing above
2024May 16, 2024
2022May 18, 2022

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.