14.
EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income available to common shareholders 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 available to common shareholders 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 and the dilutive effect of Mandatory Convertible Preferred Stock pursuant to the if-converted method. The following table sets forth the computation of basic and diluted earnings per share attributable to common shareholders:

 

 

 

Year Ended May 31,

 

(in millions, except per share data)

 

2026

 

 

2025

 

 

2024

 

Net income

 

$

17,087

 

 

$

12,443

 

 

$

10,467

 

Preferred stock dividends

 

 

103

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

16,984

 

 

$

12,443

 

 

$

10,467

 

Weighted-average common shares outstanding

 

 

2,860

 

 

 

2,789

 

 

 

2,744

 

Dilutive effect of employee stock plans

 

 

54

 

 

 

77

 

 

 

79

 

Dilutive weighted-average common shares outstanding

 

 

2,914

 

 

 

2,866

 

 

 

2,823

 

Basic earnings per share attributable to common shareholders

 

$

5.94

 

 

$

4.46

 

 

$

3.82

 

Diluted earnings per share attributable to common shareholders

 

$

5.83

 

 

$

4.34

 

 

$

3.71

 

Stock awards and shares excluded from calculation(1)

 

 

31

 

 

 

23

 

 

 

27

 

 

(1)
Consists of: (1) anti-dilutive restricted stock-based awards and stock options, both of which were service-based, as calculated using the treasury stock method, (2) anti-dilutive Mandatory Convertible Preferred Stock as calculated using the if-converted method and (3) contingently issuable shares pursuant to PSO arrangements as the performance conditions were not met. These excluded stock awards and shares could be dilutive in the future. See Note 11 for information regarding our stock-based compensation plans.
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Historical Timeline

Fiscal YearFiled
2026Jun 22, 2026Showing above
2025Jun 18, 2025
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.