Medtronic plcMDT

Medtronic plc Earnings Per Share Disclosure

10-KFiled Jun 20, 20251 min read
Earnings Per Share
Basic earnings per share is computed based on the weighted average number of ordinary shares outstanding. Diluted earnings per share is computed based on the weighted number of ordinary shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive ordinary shares been issued, and reduced by the number of shares the Company could have repurchased with the proceeds from issuance of the potentially dilutive shares. Potentially dilutive ordinary shares include stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan.
The table below sets forth the computation of basic and diluted earnings per share:
 Fiscal Year
(in millions, except per share data)202520242023
Numerator:   
Net income attributable to ordinary shareholders$4,662 $3,676 $3,758 
Denominator:  
Basic – weighted average shares outstanding1,285.6 1,327.7 1,329.8 
Effect of dilutive securities:  
Employee stock options0.5 0.7 1.5 
Employee restricted stock units2.2 1.4 1.0 
Employee performance share units1.5 0.4 0.5 
Diluted – weighted average shares outstanding1,289.9 1,330.2 1,332.8 
Basic earnings per share$3.63 $2.77 $2.83 
Diluted earnings per share$3.61 $2.76 $2.82 
The calculation of weighted average diluted shares outstanding excludes stock awards of approximately 26 million, 28 million, and 23 million ordinary shares in fiscal year 2025, 2024, and 2023, respectively because their effect would have been anti-dilutive on the Company’s earnings per share.

Historical Timeline

Fiscal YearFiled
2025Jun 20, 2025Showing above
2024Jun 20, 2024
2023Jun 22, 2023
2022Jun 23, 2022
2021Jun 25, 2021
2020Jun 19, 2020
2019Jun 21, 2019
2018Jun 22, 2018
2017Jun 27, 2017

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.

Other Available Disclosures

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