LAM RESEARCH CORP Earnings Per Share Disclosure
| Year Ended | |||||||||||||||||
| June 29, 2025 | June 30, 2024 | June 25, 2023 | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net income | $ | 5,358,217 | $ | 3,827,772 | $ | 4,510,931 | |||||||||||
| Denominator: | |||||||||||||||||
| Basic average shares outstanding | 1,286,101 | 1,314,102 | 1,354,715 | ||||||||||||||
| Effect of potential dilutive securities: | |||||||||||||||||
| Employee stock plans | 4,041 | 5,847 | 3,621 | ||||||||||||||
| Diluted average shares outstanding | 1,290,142 | 1,319,949 | 1,358,336 | ||||||||||||||
| Net income per share - basic | $ | 4.17 | $ | 2.91 | $ | 3.33 | |||||||||||
| Net income per share - diluted | $ | 4.15 | $ | 2.90 | $ | 3.32 | |||||||||||
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.