14.
EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock-based awards, stock options and shares issuable under the Purchase Plan as applicable pursuant to the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share:

 

 

 

Year Ended May 31,

 

(in millions, except per share data)

 

2025

 

 

2024

 

 

2023

 

Net income

 

$

12,443

 

 

$

10,467

 

 

$

8,503

 

Weighted-average common shares outstanding

 

 

2,789

 

 

 

2,744

 

 

 

2,696

 

Dilutive effect of employee stock plans

 

 

77

 

 

 

79

 

 

 

70

 

Dilutive weighted-average common shares outstanding

 

 

2,866

 

 

 

2,823

 

 

 

2,766

 

Basic earnings per share

 

$

4.46

 

 

$

3.82

 

 

$

3.15

 

Diluted earnings per share

 

$

4.34

 

 

$

3.71

 

 

$

3.07

 

Anti-dilutive stock awards excluded from calculation(1)

 

 

23

 

 

 

27

 

 

 

50

 

 

(1)
These stock awards relate to anti-dilutive restricted service-based awards as calculated using the treasury stock method and contingently issuable shares pursuant to PSOs arrangements. Such shares could be dilutive in the future. See Note 11 for information regarding our stock-based compensation plans.

Historical Timeline

Fiscal YearFiled
2025Jun 18, 2025Showing above
2024Jun 20, 2024
2023Jun 20, 2023
2022Jun 21, 2022
2021Jun 21, 2021
2020Jun 22, 2020
2019Jun 21, 2019
2018Jun 22, 2018
2017Jun 27, 2017
2016Jun 22, 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.