Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share:
202520242023
Net
Income
SharesNet
Income
SharesNet
Income
Shares
(millions, except per share data)
Net income and average number of shares outstanding$642 269.8$582 276.8$45 273.2
Shares to be issued under deferred compensation and other plans0.80.9 1.0
$642 270.6$582 277.7$45 274.2
Basic earnings per share$2.37 $2.10 $0.16 
Effect of dilutive securities:
Stock options and restricted stock units5.93.94.0
$642 276.5$582 281.6$45 278.2
Diluted earnings per share$2.32 $2.07 $0.16 
In addition to the stock options and restricted stock units in the foregoing table, stock options to purchase 5.7 million shares of common stock and restricted stock units relating to 0.2 million shares of common stock were outstanding at January 31, 2026, stock options to purchase 7.8 million shares of common stock and restricted stock units relating to 0.6 million shares of common stock were outstanding at February 1, 2025, and stock options to purchase 9.9 million of shares of common stock and restricted stock units relating to 1.6 million shares of common stock were outstanding at February 3, 2024, but were not included in the computation of diluted earnings per share for 2025, 2024, or 2023, respectively, because their inclusion would have been antidilutive or they were subject to performance conditions that had not been met.

Historical Timeline

Fiscal YearFiled
2026Mar 27, 2026Showing above
2025Mar 21, 2025
2024Mar 22, 2024
2023Mar 24, 2023
2022Mar 25, 2022
2021Mar 29, 2021
2020Mar 30, 2020
2019Apr 3, 2019
2018Apr 4, 2018
2017Mar 29, 2017
2016Mar 30, 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.